Gwyneth Inc. currently has a contribution margin of $ 22 on its only product and sells...
Gwyneth Inc. currently has a contribution margin of
$ 22
on its only product and sells
42,000
units. Gwyneth Inc. is considering cutting its sales price by
$ 3
to generate an increase in sales of
12,000
units. How will this change affect its operating income?
A.It will decrease operating income by
$126,000.
B.It will increase operating income by
$102,000.
C.It will decrease operating income by
$102,000.
D.It will increase operating income by
$126,000.
Homework Answers
Correct answer----- (B) It will increase operating income by
$102,000.
|
Before decreasing price |
After decreasing price |
|||
|
Working |
Amount |
Working |
Amount |
|
|
Contribution margin |
(42000 units x 22) |
$ 9,24,000.00 |
(42000+12000 Units ) x 19) |
$ 10,26,000.00 |
|
Additional Operating income (1026000-924000) |
$ 1,02,000.00 |
|||
Add Answer to:
Gwyneth Inc. currently has a contribution margin of
$ 22
on its only product and sells...
Newman Company currently produces and sells 7,000 units of a product that has a contribution margin...
Newman Company currently produces and sells 7,000 units of a product that has a contribution margin of $9 per unit. The company sells the product for a sales price of $23 per unit. Fixed costs are $20,000. The company is considering investing in new technology that would decrease the variable cost per unit to $11 per unit and double total fixed costs. The company expects the new technology to increase production and sales to 12,000 units of product. What sales...
Sorin Inc., a company that produces and sells a single product, has provided its contribution format...
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (4,100 units) Variable expenses Contribution margin Fixed expenses Net operating income $123,000 67,650 55,350 39,900 $ 15,450 If the company sells 4,800 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units)...
Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format...
Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (6,300 units) $ 403,200 Variable expenses 277,200 Contribution margin 126,000 Fixed expenses 103,500 Net operating income $ 22,500 If the company sells 6,200 units, its net operating income should be closest to: (Do not round intermediate calculations.)
can someone help me with this question? 3-22 CVP computations. Simplex Inc. sells its product at...
can someone help me with this question?
3-22 CVP computations. Simplex Inc. sells its product at $80 per unit with a contribution margin of 40%. During 2016, Simplex sold 540,000 units of its product; its total fixed costs are $2,100,000. 1. Calculate the (a) contribution margin, (b) variable costs, and (c) operating income. 2. The production manager of Simplex has proposed modernizing the whole production process in order to save labor costs. However, the modernization of the production process will...
Sorin Inc., a company that produces and sells a single product, has provided its contribution format...
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January Sales (3,500 units) Variable expenses Contribution margin Fixed expenses Net operating income $94,500 41,580 52,920 40,700 $12,220 If the company sells 3,800 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Multiple Choice $52,920 $57456 $71,700 $13,267 Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the...
Decaprio Inc. produces and sells a single product. The company has provided its contribution format income...
Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June Sales (7,200 units) Variable expenses Contribution margin Fixed expenses Net operating income S324,000 201,600 122,400 87,500 34,900 If the company sells 7.400 units, its net operating income should be closest to: (Do not round intermediate calculations.) Multiple Choice $38,300 $34,900 $43.900 $35,869 < Prev 40, 11 İİİ Net> Jilk nc's contribution margin ratio is 60% and its fixed monthly expenses are...
35 Sorin Inc., a company that produces and sells a single product, has provided its contribution...
35 Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (5,000 units) $ 145,000 Variable expenses 58,000 Contribution margin 87,000 Fixed expenses 63,500 Net operating income $ 23,500 If the company sells 5,700 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Brewer 8e Rechecks 2018-06-19 Multiple Choice $87,000 $99,180 $95,500 $26,790
Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format...
Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (6,300 units) $ 415,800 Variable expenses 289,800 Contribution margin 126,000 Fixed expenses 103,500 Net operating income $ 22,500 If the company sells 6,200 units, its net operating income should be closest to: (Do not round intermediate calculations.) Brewer 8e Rechecks 2018-06-19 Multiple Choice $21,979 $20,500 $22,500 $18,000
Decaprio Inc. produces and sells a single product. The company has provided its contribution format income...
Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June. Sales (6,600 units) $ 330,000 Variable expenses 211,200 Contribution margin 118,800 Fixed expenses 88,100 Net operating income $ 30,700 If the company sells 6,800 units, its net operating income should be closest to: (Do not round intermediate calculations.) Brewer 8e Rechecks 2018-06-19 Multiple Choice $34,300 $30,700 $40,700 $31,630
If a company wishes to increase its operating income by $28,000,and currently has a contribution margin...
If a company wishes to increase its operating income by $28,000,and currently has a contribution margin ratio of 60%, then sales would have to increase by $40,000. true/false
Newman Company currently produces and sells 7,000 units of a product that has a contribution margin of $9 per unit. The company sells the product for a sales price of $23 per unit. Fixed costs are $20,000. The company is considering investing in new technology that would decrease the variable cost per unit to $11 per unit and double total fixed costs. The company expects the new technology to increase production and sales to 12,000 units of product. What sales...
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (4,100 units) Variable expenses Contribution margin Fixed expenses Net operating income $123,000 67,650 55,350 39,900 $ 15,450 If the company sells 4,800 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units)...
can someone help me with this question?
3-22 CVP computations. Simplex Inc. sells its product at $80 per unit with a contribution margin of 40%. During 2016, Simplex sold 540,000 units of its product; its total fixed costs are $2,100,000. 1. Calculate the (a) contribution margin, (b) variable costs, and (c) operating income. 2. The production manager of Simplex has proposed modernizing the whole production process in order to save labor costs. However, the modernization of the production process will...
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January Sales (3,500 units) Variable expenses Contribution margin Fixed expenses Net operating income $94,500 41,580 52,920 40,700 $12,220 If the company sells 3,800 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Multiple Choice $52,920 $57456 $71,700 $13,267 Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the...
Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June Sales (7,200 units) Variable expenses Contribution margin Fixed expenses Net operating income S324,000 201,600 122,400 87,500 34,900 If the company sells 7.400 units, its net operating income should be closest to: (Do not round intermediate calculations.) Multiple Choice $38,300 $34,900 $43.900 $35,869 < Prev 40, 11 İİİ Net> Jilk nc's contribution margin ratio is 60% and its fixed monthly expenses are...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago