HomeworkLib
Question

In cost-volume-profit analysis, a multiple-product problem is converted into a single-product problem by: a. determining the
Burlywood Company sells two products that are expected to produce total revenue of $198,077 and total variable cost of $128.7
The margin of safety is: a. the units sold or the revenue earned above the break-even volume. b. the amount by which sales sh
Which of the following equations can be used to determine the number of units to be sold to earn a target income? a. Number oplease answer all 4 multiple choice questions
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1. (c) defining a particular sales mix in units

Explanation: A multiple product problem can be converted to single product problem by defining the sales mix of various products. After determining the sales mix, the contribution margin can also be defined and used to determine the break even point and perform other cost volume and profit analysis.

2. (d) $124,714

Explanation:

Variable cost ratio = ( $128,750 / $198,077) * 100 i.e. 65%

Contribution margin ratio = 100 - 65 i.e. 35%

Break even sales = Fixed cost / Contribution margin ratio

= $43,650 / 35%

$124,714

3. (a) the units sold or the revenue earned above the break even volume

Explanation: The margin of safety is defined as units sold above the break even that will result in profits.

4. (d) Number on units to earn target income = (Total fixed cost + Target Income) / Contribution margin per unit

Explanation: The above mentioned is the straight formula to calculate the number of units to earn target income.

0 0
Add a comment
Know the answer?
Add Answer to:
please answer all 4 multiple choice questions In cost-volume-profit analysis, a multiple-product problem is converted into...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A A A Aa A A2A Styles Dictate ! Styles Pane Term Cost-volume- profit analysis Definition...

    A A A Aa A A2A Styles Dictate ! Styles Pane Term Cost-volume- profit analysis Definition The proportion of products based upon the number of units sold. The proportion of products sold based on total sales revenue. Analysis that focuses on relationships among revenue, volume, mix of units sold, variable and fixed costs. Analysis that focuses on determining the number of units or " sales revenue required to generate a desired net income Analysis that focuses on determining the number...

  • please answer all 4 multiple choice questions In a cost-volume-profit graph, the total cost line meets...

    please answer all 4 multiple choice questions In a cost-volume-profit graph, the total cost line meets the Y (vertical) axis at the: a. variable cost per unit point. b. total sales revenues point. c. total fixed costs point. d. total mixed costs point. Which of the following equations is used to calculate the degree of operating leverage? a. Degree of Operating Leverage = Operating Income / Total Contribution Margin b. Degree of Operating Leverage = Total Fixed Cost / Operating...

  • Cost-Volume-Profit Analysis Randy Rajoub is evaluating a business opportunity to sell cookware of trade shows. Mr....

    Cost-Volume-Profit Analysis Randy Rajoub is evaluating a business opportunity to sell cookware of trade shows. Mr. Rajoub can buy the cookware ar a wholesale cost of 5270 per ser. He plans to sell the cookware for $350 per se. He estimates fixed costs such as pane fare, booth rental cost and lodging to be 55,600 per trade show, Required a. Determine the number of cookware sets Mr. Rajoub must sell at a trade show to break even (zero profit or...

  • EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a....

    EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a. Start by calculating the contribution margin for each product Sweater contribution margin- Jacket contribution margin- per unit per unit Then, calculate the weighted average contribution margin per unit: Weighted average contribution margin per unit = ) + ( b. The break-even point in units is calculated as: c. Break-even point in units for each product is: Sweater Jacket Total units (= units (= units...

  • please answer all 4 multiple choice questions Which of the following equations is used to calculate...

    please answer all 4 multiple choice questions Which of the following equations is used to calculate the break-even units? a. Break-Even Units = Total Fixed Cost / Price per Unit b. Break-Even Units = Total Fixed Cost / Variable Cost per Unit c. Break-Even Units = Total Variable Cost / (Price - Fixed Cost per Unit) d. Break-Even Units = Total Fixed Cost / (Price - Variable Cost per Unit) CE Contribution margin is the difference between: O a. sales...

  • 1. Cost-Volume Profit Analysis Recline Company is planning to produce and sell 12,500 units of its...

    1. Cost-Volume Profit Analysis Recline Company is planning to produce and sell 12,500 units of its only product at a unit price of $100. At this sales level Recline Company will generate $400,000 in total contribution margin and incur fixed costs of $25/unit. a.  Calculate Recline’s contribution margin ratio. Round answer to the nearest whole percentage (ex: 0.3456 = 35%) __________% b.  Calculate the break-even point in sales dollars for Recline. Use your rounded answer from part a. above and then round...

  • Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming...

    Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: $2,026,200 Sales (61,400 units @ $33.00) Total variable cost 1,337,292 Contribution margin $ 688,908 Total fixed cost 743,886 Operating income $(54,978) Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin Break-even units units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? 3. Compute the...

  • Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming...

    Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (79,300 units @ $26.00) $2,061,800 Total variable cost 1,257,698 Contribution margin $ 804,102 Total fixed cost 867,984 Operating income $ (63,882) Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin $ Break-even units units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? $...

  • Break even point in units = Fixed cost / Contribution Margin per unit Target Profit =...

    Break even point in units = Fixed cost / Contribution Margin per unit Target Profit = (Fixed Cost + Target Profit) / Contribution Margin Per Unit Break even point in dollars = Fixed cost / Contribution Margin % After tax target profit = (Fixed Cost) + (Target Profit) / (1 - Tax Rate) / Contribution Margin Per Unit Break even on a cash basis = (Fixed cost - Non cash items) / Contribution margin per unit Variable cost per unit...

  • PLEASE ANSWER THE FOLLOWING QUESTIONS 1. 2. 3. 4. High-Low Method The manufacturing costs of Gregory...

    PLEASE ANSWER THE FOLLOWING QUESTIONS 1. 2. 3. 4. High-Low Method The manufacturing costs of Gregory Industries for three months of the year are provided below. Total Costs Production January $149,040 990 units February 205,680 2,040 231,840 2,790 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit March $ b. Total fixed cost $ Contribution Margin Sally Company sells...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT