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1.At a volume of 3,000 units, Rudy Inc. reported the following: Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000 Compute contribution margin per unit: 2.

1.At a volume of 3,000 units, Rudy Inc. reported the following: Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000 Compute contribution margin per unit:

2. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

Compute break-even units

3. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

Compute CM ratio. Round to three places and state in decimal form.

4. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

Compute break-even dollars

5. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

Compute break-even units for a target profit of $1,000,000

6. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

Compute break-even sales dollars for a target profit of $1,500,000

7. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

Compute the safety margin in dollars at 3,000 units:

8.Compute the margin of safety above as a percentage of sales - round to two places and state in decimal form i.e. 42% would become 0.42

9. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

Compute the operating leverage for Rudy Inc. Round to 2 decimal places.

10. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

What would be the increase in Net Income from a 20% increase in Sales? To be marked correct, please give the % increase rather than $ amount, round answer to 2 places and state in decimal form i.e. 75% becomes 0.75.

11. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

If the company eliminates sales comissions of $100 per unit by changing to a flat salary increase of $400,000 for its sales managers, by what dollar amount would net income change? Note increases as a positive number, decreases as a negative number.

12. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

If instead of changing the sales commissions (treat independently from #11), the company reduces its selling price by $100 per unit, resulting in an increase in sales of 900 units, what is the impact to net income in dollars? Note increases with a positive number, decreases with a negative number.

13. At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

If instead, the company decides to reduce the selling price by $100, AND increase advertising by $200,000 and expects sales to increase by 1,200 units, what would be the impact on net income in dollars? Note increases with a positive number, decreases with a negative number.

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