Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Gilpatric Corporation produces and sells two products. In the most recent month, Product Q71M had sales of $31,000 and variable expenses of $8,440. Product

1. Gilpatric Corporation produces and sells two products. In the most recent month, Product Q71M had sales of $31,000 and variable expenses of $8,440. Product V04P had sales of $52,000 and variable expenses of $39,700. The fixed expenses of the entire company were $35,530. The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) A.$83,000 B.$84,595 C.$35,530 D.$27,223

2. Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below: Per Unit Percent of Sales Selling price $160 100% Variable expenses 80 50% Contribution margin $ 80 50% The company is currently selling 6,800 units per month. Fixed expenses are $488,800 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? a.Decrease of $7,200 b.Increase of $7,200 c. Increase of $14,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Beat The IRS At Its Own Game Strategies To Avoid And Fight An Audit

Authors: Amir D Aczel

1st Edition

1568580487, 978-1568580487

More Books

Students also viewed these Accounting questions