Homework Answers
| Current Profit | At | ||
| Particulars | per unit | 100,000 | units |
| Sales | 35 | $ 3,500,000 | |
| Variable cost | 15 | 1,500,000 | |
| Contribution margin | 20 | $ 2,000,000 | |
| Fixed Cost | $ 1,000,000 | ||
| Net profit | $ 1,000,000 | ||
| Revised Profit | At | ||
| Particulars | per unit | 100,000 | units |
| Sales | 35 | $ 3,500,000 | |
| Variable cost | 22 | 2,200,000 | |
| Contribution margin | 13 | $ 1,300,000 | |
| Fixed Cost | $ 1,000,000 | ||
| Net profit | $ 300,000 | ||
| Decrease in net profit | $ 700,000 | ||
| Answer is E) $ 700,000 decrease |
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Question 16 (1 point) Citizen sells a watch for $35 at a variable cost of $15...
Krazy Kayaks sells its entry-level kayaks for $750 each its variable cost is $500 per kayak...
Krazy Kayaks sells its entry-level kayaks for $750 each its variable cost is $500 per kayak Fixed costs are $25 000 per month for volumes up to 1100 kayaks. Above 1,100 kayaks, monthly fixed costs are $60.000. What is budgeted operating income at a level of 2.500 kayak per month OA $500.000 OB. $1815.000 OC 5565.000 OD 125.000
1) 2) 3) 4) 5) If variable costs per unit decreased because of a decrease in...
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If variable costs per unit decreased because of a decrease in utility rates, the break-even point would Oa. decrease Ob. increase Oc. remain the same Od. increase or decrease, depending upon the percentage increase in utility rates If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage? Oa. 0.0 Ob. 1.3 Oc. 7.5 Od. 2.0 If fixed costs are $561,000 and the unit contribution margin...
Comfort Cloud manicures seats for a planes. The company has the capacity to produce 100.000 seats...
Comfort Cloud manicures seats for a planes. The company has the capacity to produce 100.000 seats per year, but currently produces and sells 75.000 seats per year. The folowing information relates to current production Sales price per unit $410 Vanate couts per unit Manufacturing $250 O A. Increase by $149.500 OB. Increase by $133.900 OC. Decrease by 5133.900 OD. Increase by S140,400 Click to select your answer Variable costs per unit: Manufacturing Marketing and administrative $250 $80 Total fixed costs:...
Question 1 (1 point) Expense A is a fixed cost; expense B is a variable cost....
Question 1 (1 point) Expense A is a fixed cost; expense B is a variable cost. During the current year, the activity level has increased but is still within the relevant range. In terms of cost per unit of activity, you would expect which of the following statements to be true? OA) Expense A has remained unchanged OB) Expense B has decreased. OC) Expense A has decreased. OD) Expense B has increased.
Question 14 (1 point) Last year, Terrific Copying had total revenue of $475 000, while operating...
Question 14 (1 point) Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. The total of its variable cost is $150 000. Fixed costs were $100 000. What is the expected revenue this year at full capacity? OA) $791 667 OB) $1 341 667 OC) $300 000 OD) $550 000 E) $250 000
Question 15 (1 point) Calculate the contribution margin, if the variable cost per unit to produce...
Question 15 (1 point) Calculate the contribution margin, if the variable cost per unit to produce a microwave is $39 and a contribution rate is 45%. OA) $1.15 OB) $39 C) $17.55 OD) $31.91 OE) 70.91
Cost-Volume-Profit Analysis P6-A Melon Company produces a knockoff watch that sells for $40 each. Variable costs...
Cost-Volume-Profit Analysis P6-A Melon Company produces a knockoff watch that sells for $40 each. Variable costs are $12 each and fixed costs are $210,000 each year. Required: 1) What is this product's contribution margin ratio (CM %)? 2) What is this company's break-even point in sales dollars? 3) If sales increase $400,000, how much will net income increase (assuming they are operating within the relevant range and fixed costs do not change) ? 4) Assume 20,000 units were sold last...
Question 32 (1 point) ✓ Saved The stock of MTY Golf World currently sells for $80...
Question 32 (1 point) ✓ Saved The stock of MTY Golf World currently sells for $80 per share. The firm has a constant dividend growth rate of 6% and is expected to pay a dividend of $4.80. If the required rate of return is 12%, what will the stock sell for one year from now? OA) $ 99.80 B) $ 95.40 OC) $ 93.52 OD) $ 90.00 E) $ 84.80
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
Question 1 (1 point) (1 Point) We assume that the representative consumer's preferences exhibit the properties...
Question 1 (1 point) (1 Point) We assume that the representative consumer's preferences exhibit the properties that Oa) they evolve over time and that more is always preferred to less. Ob) more is sometimes preferred to less and that consumption and leisure are both normal goods c) more is preferred to less and that the consumer prefers diversity d) the consumer likes diversity and that more is sometimes preferred to less. Question 2 (1 point) (1 Point) A good is...
Krazy Kayaks sells its entry-level kayaks for $750 each its variable cost is $500 per kayak Fixed costs are $25 000 per month for volumes up to 1100 kayaks. Above 1,100 kayaks, monthly fixed costs are $60.000. What is budgeted operating income at a level of 2.500 kayak per month OA $500.000 OB. $1815.000 OC 5565.000 OD 125.000
1)
2)
3)
4)
5)
If variable costs per unit decreased because of a decrease in utility rates, the break-even point would Oa. decrease Ob. increase Oc. remain the same Od. increase or decrease, depending upon the percentage increase in utility rates If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage? Oa. 0.0 Ob. 1.3 Oc. 7.5 Od. 2.0 If fixed costs are $561,000 and the unit contribution margin...
Comfort Cloud manicures seats for a planes. The company has the capacity to produce 100.000 seats per year, but currently produces and sells 75.000 seats per year. The folowing information relates to current production Sales price per unit $410 Vanate couts per unit Manufacturing $250 O A. Increase by $149.500 OB. Increase by $133.900 OC. Decrease by 5133.900 OD. Increase by S140,400 Click to select your answer Variable costs per unit: Manufacturing Marketing and administrative $250 $80 Total fixed costs:...
Question 1 (1 point) Expense A is a fixed cost; expense B is a variable cost. During the current year, the activity level has increased but is still within the relevant range. In terms of cost per unit of activity, you would expect which of the following statements to be true? OA) Expense A has remained unchanged OB) Expense B has decreased. OC) Expense A has decreased. OD) Expense B has increased.
Question 14 (1 point) Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. The total of its variable cost is $150 000. Fixed costs were $100 000. What is the expected revenue this year at full capacity? OA) $791 667 OB) $1 341 667 OC) $300 000 OD) $550 000 E) $250 000
Question 15 (1 point) Calculate the contribution margin, if the variable cost per unit to produce a microwave is $39 and a contribution rate is 45%. OA) $1.15 OB) $39 C) $17.55 OD) $31.91 OE) 70.91
Cost-Volume-Profit Analysis P6-A Melon Company produces a knockoff watch that sells for $40 each. Variable costs are $12 each and fixed costs are $210,000 each year. Required: 1) What is this product's contribution margin ratio (CM %)? 2) What is this company's break-even point in sales dollars? 3) If sales increase $400,000, how much will net income increase (assuming they are operating within the relevant range and fixed costs do not change) ? 4) Assume 20,000 units were sold last...
Question 32 (1 point) ✓ Saved The stock of MTY Golf World currently sells for $80 per share. The firm has a constant dividend growth rate of 6% and is expected to pay a dividend of $4.80. If the required rate of return is 12%, what will the stock sell for one year from now? OA) $ 99.80 B) $ 95.40 OC) $ 93.52 OD) $ 90.00 E) $ 84.80
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
Question 1 (1 point) (1 Point) We assume that the representative consumer's preferences exhibit the properties that Oa) they evolve over time and that more is always preferred to less. Ob) more is sometimes preferred to less and that consumption and leisure are both normal goods c) more is preferred to less and that the consumer prefers diversity d) the consumer likes diversity and that more is sometimes preferred to less. Question 2 (1 point) (1 Point) A good is...
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