Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4,000 Sunbucks Coffee sells three small coffees for every one large ones. A small 4 puan coffee sells for $4 per cup, with a variable

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

4,000 Sunbucks Coffee sells three small coffees for every one large ones. A small 4 puan coffee sells for $4 per cup, with a variable cost of $2.00 per cup. A large coffee sells for $6 per cup with a variable cost of $3 per cup. What is the weighted average contribution margin? O $3.00 O $2.25 $3.25 O $2.50 $2.75 ilmalar manufactures salls for sallboats. The company has 4 puan Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, but is currently producing and selling 20,000 sails per year. The following information relates to current production. If a special sales order is accepted for 2,000 sails at a price of $88 per unit, and fixed costs increase by $20,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) Sale price per unit $150 Variable costs per unit: Manufacturing Marketing and administrative $60 $20 Total fixed costs: Manufacturing Marketing and administrative S600,000 S200,000 Increase by $6,000 Decrease by $16.000 Decrease by $36,000 Decrease by $4.000 increase by S16000 4 puan Clear Springs Bottling Company produces a soft drink. Selling price is 2 (two) dollars. The company pays $800,000 in production costs, of which $500.000 are variable production costs. General, selling, and administrative costs amount to $400,000 of which $100.000 are variable costs. Assuming production and sales of 400,000 units, what is the amount of contribution margin per unit? O None O $0.50 $0.60 O $0.30 $0.40 the relation between Select the incorrect statement regarding the relationship between cost behavior and revenue. 3 puan O A pure fixed cost structure offers higher potential rewards. In a pure variable cost structure, operating leverage is 1 (one). O In a pure variable cost structure, when revenue increases by $1, so do profits In a pure fixed cost structure, the unit selling price and unit contribution margin are equal A pure variable cost structure offers more security if volume expectations are not achieved The records of Vallum Company show a contribution margin ratio of 40%. Irresires to earn a profit of $36.000 and has fixed costs of 4 DL The records of Valium Company show a contribution margin ratio of 40%. The company desires to earn a profit of $36,000 and has fixed costs of $60,000. Determine the sales revenue that would have to be generated in order to earn the desired profit. O $240,000 O None $340,000 $300,000 O $106,250 arte related to a product increase, while variable costs and sales

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

Step: 3

blur-text-image

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

New Auditors Guide To Internal Auditing

Authors: Bruce R. Turner

1st Edition

1634540549, 978-1634540544

More Books

Students also viewed these Accounting questions

Question

What is a debtor in possession?

Answered: 1 week ago

Question

10-9 How have social technologies changed e-commerce?

Answered: 1 week ago