Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company's financial results are as follows: Total Per Unit $ 17.31 Sales Variable expenses Fixed expenses $100,398 $44,892 $31,639 Using these results, answer the

image text in transcribed
image text in transcribed
A company's financial results are as follows: Total Per Unit $ 17.31 Sales Variable expenses Fixed expenses $100,398 $44,892 $31,639 Using these results, answer the following questions: $ 1. How much is the Contribution Margin Ratio (round to nearest thousandth/input code: 0.000)? If you use the CMR for any further calculations, use the value as rounded/calculated here. 2. How much is the Unit Contribution Margin (round to nearest hundredth/input code: 0.00)? If you use the UCM for any further calculations, use the value as rounded/calculated here. 3. How much is the Operating Leverage (round to the nearest thousandth/input code: 0.000)? If you use the Operating Leverage for any further calculations, use the value as rounded/calculated here. 4. How much is the Total Contribution Margin (round to the nearest whole dollar/input code: 0)? If you use the Total CM for any further calculations, use the value as rounded/calculated here. 5. How many units is this company selling of its product (round UP to the nearest whole unit/input code: 0). If you use total units sold for any further calculations, use the value as rounded/calculated here. 6. What is the break-even point in units for this company (round UP to the nearest hundred units/input code: 0)? 7. If this company desires to earn Net income of $37,000, how many dollars of sales do they need to make this happen (round UP to the nearest thousand dollars/input code: 0)? 8. This company is considering a change in their raw materials that would cause an increase of $ 0.53 per unit in production costs. Due to this change, they believe customers will respond with a sales volume increase of 24%. How much Net Income would this company expect if this were to happen? (round UP to the nearest hundred dollars/input code: 0)

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

Foundations Of Cost Control

Authors: Daniel Traster

1st Edition

0132156555, 978-0132156554

More Books

Students also viewed these Accounting questions