Question
In: Accounting
Amasarcas Inc., is a wholesaler that distributes a single product. The company’s revenues and expenses for...
Amasarcas Inc., is a wholesaler that distributes a single product. The company’s revenues and expenses for the last two months are given below:
|
Sales in units |
5,000 units |
6,000 units |
|
Sales revenue |
$500,000 |
$600,000 |
|
Expense A |
10,000 |
10,000 |
|
Expense B |
125,000 |
150,000 |
|
Expense C |
50,000 |
74,000 |
|
Expense D |
10,000 |
18,000 |
|
Expense E |
30,000 |
30,000 |
|
Net income |
$275,000 |
$318,000 |
Which of the expenses (A, B, C, D, and E) are variable? How can you tell?
Which of the expenses (A, B, C, D, and E) are fixed? How can you tell?
Which of the expenses (A, B, C, D, and E) are mixed? How can you tell?
Solutions
ekkarill92 answered 5 months agoRelated Solutions
Amasarcas Inc., is a wholesaler that distributes a single product. The company’s revenues and expenses for...
Amasarcas Inc., is a wholesaler that distributes a single
product. The company’s revenues and expenses for the last two
months are given below:
Sales in units
5,000 units
6,000 units
Sales revenue
$500,000
$600,000
Expense A
10,000
10,000
Expense B
125,000
150,000
Expense C
50,000
74,000
Expense D
10,000
18,000
Expense E
30,000
30,000
Net income
$275,000
$318,000
Which of the expenses (A, B, C, D, and E)...
sara Company distributes a single product. The company’s sales and expenses for a recent month follow:...
sara Company distributes a single product. The company’s sales
and expenses for a recent month follow:
Total
Per Unit
Sales
$560,000
$80
Variable expenses
392,000
56
Contribution margin
168,000
24
Fixed expenses
150,000
Net operating income
$ 18,000
Instructions:
1. What is the monthly break-even point in units
sold and in sales
dollars?
2. What is the company’s CM ratio and the
variable expense ratio?
3. Without resorting to computations, what is the total
contribution margin at the break-even point?...
Menlo Compant distributes a single product. The company’s sales and expenses for last month follow :...
Menlo Compant distributes a single product. The company’s sales
and expenses for last month follow :
Total
Per Unit
Sales
$450,000
$30
Variable
Expenses
180,000
12
Contribution
Margin
270,000
$18
Field
Expenses
216,000
Net Operating
Income
$54,000
1. What is the monthly break
even point in unit sales and in dollar sales?
2. Without resorting to
computations, what is the total contribution margin at the break
even point?
3. How many units would have
to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: ...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total Per Unit
Sales $ 628,000
$ 40
Variable expenses 439,600
28
Contribution margin 188,400
$ 12
Fixed expenses 153,600
Net operating income $ 34,800
Required:
1. What is the monthly break-even point in unit sales and in dollar
sales?
2. Without resorting to computations,...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
302,000
$
20
Variable expenses
211,400
14
Contribution margin
90,600
$
6
Fixed expenses
77,400
Net operating income
$
13,200
Required:
1. What is the monthly break-even point in unit sales and in
dollar sales?
2. Without resorting to computations, what is the total
contribution margin at the break-even point?
3-a. How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow: Total Per Unit Sales $ 620,000
$ 40 Variable expenses 434,000 28 Contribution margin 186,000 $ 12
Fixed expenses 148,800 Net operating income $ 37,200
Required: 1. What is the monthly break-even point in unit sales
and in dollar sales?
2. Without resorting to computations, what is the total
contribution margin at the break-even point?
3-a. How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
612,000
$
40
Variable expenses
428,400
28
Contribution margin
183,600
$
12
Fixed expenses
147,600
Net operating income
$
36,000
Required:
1. What is the monthly break-even point in unit sales and in
dollar sales?
2. Without resorting to computations, what is the total
contribution margin at the break-even point?
3-a. How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow: Total Per Unit Sales $ 624,000
$ 40 Variable expenses 436,800 28 Contribution margin 187,200 $ 12
Fixed expenses 154,800 Net operating income $ 32,400 Required: 1.
What is the monthly break-even point in unit sales and in dollar
sales? 2. Without resorting to computations, what is the total
contribution margin at the break-even point? 3-a. How many units
would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
306,000
$
20
Variable expenses
214,200
14
Contribution margin
91,800
$
6
Fixed expenses
76,200
Net operating income
$
15,600
Required:
1. What is the monthly break-even point in unit sales and in
dollar sales?
2. Without resorting to computations, what is the total
contribution margin at the break-even point?
3-a. How many units would have to be sold each...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
608,000
$
40
Variable expenses
425,600
28
Contribution margin
182,400
$
12
Fixed expenses
151,200
Net operating income
$
31,200
Required:
1. What is the monthly break-even point in unit sales and in
dollar sales?
2. Without resorting to computations, what is the total
contribution margin at the break-even point?
3-a. How many units would have to be sold each...
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