Question
In 2016, the Allen Company had consulting revenues of $1,050,000 while operating costs were $770,000. In 2017, Allen will be introducing a new service that
In 2016, the Allen Company had consulting revenues of $1,050,000 while operating costs were $770,000. In 2017, Allen will be introducing a new service that will generate $154,000 in sales revenues and $62,000 in operating costs. Assuming no changes are expected for the other services, the differential revenue for 2017 will be
$280,000.
$154,000.
$92,000.
$62,000.
Artis Sales has two store locations. Store A has fixed costs of $135,000 per month and a variable cost ratio of 60%. Store B has fixed costs of $240,000 per month and a variable cost ratio of 30%. What is the break-even sales volume for Store A?
$225,000.
$337,500.
$375,000.
Cannot determine with the information given.
Lake Sales had $2,200,000 in sales last month. The contribution margin ratio was 35% and operating profits were $175,000. What sales volume does Lake's need to yield a $297,500 operating profit?
$500,000. $2,025,000. $2,550,000. $2,497,500.
In 2016, the TransUnion Company had consulting revenues of $1,130,000 while costs were $710,000. In 2017, TransUnion will be introducing a new service that will generate $215,000 in sales revenues and $73,000 in costs. Assuming no changes are expected for the other services, operating profits are expected to increase between 2016 and 2017 by:
$420,000.
$215,000.
$142,000.
$73,000.
Geno's Body Shop had sales revenues and operating costs in 2016 of $740,000 and $570,000, respectively. In 2017, Geno's plans to expand the services it provides to customers to include detailing services. Revenues are expected to increase by $103,000 and operating costs by $59,000 as a result of this expansion. Assuming that there are no changes to the existing body shop business, what is the amount of operating profits that are expected be earned in 2017?
$170,000
$103,000
$214,000
$44,000
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