Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Proli Footwear Inc An Audit And Fraud Simulation For Team-Based Student Learning

Authors: Patricia Poli, Richard Proctor

2nd Edition

0615455492, 978-0615455495

More Books

Students also viewed these Accounting questions