Question
1-Leo Company paid wages expense of $2,500 under the activity level of 500 units. The estimated wages expense under the activity level of 1,300 units
1-Leo Company paid wages expense of $2,500 under the activity level of 500 units. The estimated wages expense under the activity level of 1,300 units is $6,500 *
True /False
2-ARC Company had a maintenance cost of $5,000 under an activity level of 2,500 units and of $2,150 under 1,000 units; the fixed potion of this mixed cost is $250*
True / False
3-If a company has utilities expense of $2,000 under the activity level of 2,000 units, knowing that the utility is a mixed expense with a fixed portion of $500, the estimated utility expense for 5,000 units is $5,000 *
True/False
4-BM Company sold 2,200 units during the year 2020 for $176,000. The unit variable cost is $35. The total of fixed expenses during the year is $67,500.
Calculate :
a-The contribution margin per unit is
b-The break-even sales is
c-The margin of safety percentage is
d-The total variable expenses in the Income Statement at break-even is
e-The company is planning to increase her profit in 2021 by 20%, what is the total required sale in units to achieve the target profit?
N.B If you can solve them ASAP
Thanks in Advance
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