Each problem is unrelated to the others. 1. Given: Selling price per unit, $20; total fixed expenses,
Question:
Each problem is unrelated to the others.
1. Given: Selling price per unit, $20; total fixed expenses, $5,000; variable expenses per unit, $16. Find break-even sales in units.
2. Given: Sales, $40,000; variable expenses, $30,000; fixed expenses, $8,000; net income, $2,000. Find break-even sales in dollars.
3. Given: Selling price per unit, $30; total fixed expenses, $33,000; variable expenses per unit, $14. Find total sales in units to achieve a profit of $7,000, assuming no change in selling price.
4. Given: Sales, $50,000; variable expenses, $20,000; fixed expenses, $20,000; net income, $10,000. Assume no change in selling price; find net income if activity volume increases 10 percent.
5. Given: Selling price per unit, $40; total fixed expenses, $80,000; variable expenses per unit, $30. Assume that variable expenses are reduced by 20 percent per unit, and the total fixed expenses are increased by 10 percent. Find the sales in units to achieve a profit of $20,000, assuming no change in selling price.
Step by Step Answer:
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu