Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company is planning to sell 200,000 units for $3 a unit and will just break even at this level of sales. The contribution margin

image text in transcribedimage text in transcribedimage text in transcribed

A company is planning to sell 200,000 units for $3 a unit and will just break even at this level of sales. The contribution margin ratio is 52%. What are the company's fixed expenses? $100,000 $120,000 $150,000 $312,000 O None of the above Last year, Black Company reported sales of $640,000, a contribution margin of $160,000, and an operating loss of $40,000. Based on this information, what was the break-even point in dollar sales? * $640,000 O $480,000 $800,000 $960,000 None of the above The break-even point in unit sales increases when variable expenses do which of the following? Increase, and the selling price remains unchanged Decrease, and the selling price remains unchanged Decrease, and the selling price increases Remain unchanged, and the selling price increases O None of the above Which of the following would not be an acceptable way to express contribution margin? * Sales minus variable costs Sales minus unit costs Unit selling price minus unit variable costs Contribution margin per unit divided by unit selling price None of the above A company has sales of $100,000, variable expenses of $60,000 and fixed expenses of $20,000. If the company's sales increased by 15%, by how much its net income will increase:* O $3,000 O $6,000 $26,000 $30,000 O None of the above A total of 30,000 units were sold last year. The contribution margin per unit was $2, and total fixed expenses were $20,000 for the year. This year, fixed expenses are expected to increase to $26,000, but the contribution margin per unit will remain unchanged at $2. How many units must be sold this year to earn the same operating income as was earned last year?* 23,000 units O 33,000 units O 30,000 units O 13,000 units None of the above

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

Auditing A Risk Based Approach

Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg

12th Edition

035772187X, 978-0357721872

More Books

Students also viewed these Accounting questions

Question

Be prepared to address excessive absenteeism

Answered: 1 week ago