Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jerusalem Industrial Company presents the following information for the year 2015: Sales in units 50,000 units; Selling price per unit $80; Variable cost per unit

Jerusalem Industrial Company presents the following information for the year 2015: Sales in units 50,000 units; Selling price per unit $80; Variable cost per unit $50; Total fixed cost $1,200,000.

Match between the question and the appropriate answer.

The Contribution Margin per unit is

Answer 1Choose...40%24,000 units$300,00040,000 units15,000 units37.5%$3,200,00020%30,000 units$3,500,000$1,300,00031,597 units$30$250,000$20$1,500,00010,000 units60,000 units

The margin of Safety ratio

Answer 2Choose...40%24,000 units$300,00040,000 units15,000 units37.5%$3,200,00020%30,000 units$3,500,000$1,300,00031,597 units$30$250,000$20$1,500,00010,000 units60,000 units

The total Contribution Margin for the year is

Answer 3Choose...40%24,000 units$300,00040,000 units15,000 units37.5%$3,200,00020%30,000 units$3,500,000$1,300,00031,597 units$30$250,000$20$1,500,00010,000 units60,000 units

The break-even point in dollar is

Answer 4Choose...40%24,000 units$300,00040,000 units15,000 units37.5%$3,200,00020%30,000 units$3,500,000$1,300,00031,597 units$30$250,000$20$1,500,00010,000 units60,000 units

Contribution Margin ratio is

Answer 5Choose...40%24,000 units$300,00040,000 units15,000 units37.5%$3,200,00020%30,000 units$3,500,000$1,300,00031,597 units$30$250,000$20$1,500,00010,000 units60,000 units

Compute a new break-even point in units if the the unit sales price is increased 10%.

Answer 6Choose...40%24,000 units$300,00040,000 units15,000 units37.5%$3,200,00020%30,000 units$3,500,000$1,300,00031,597 units$30$250,000$20$1,500,00010,000 units60,000 units

What is the total sale in units to earn a profit of $600,000?

Answer 7Choose...40%24,000 units$300,00040,000 units15,000 units37.5%$3,200,00020%30,000 units$3,500,000$1,300,00031,597 units$30$250,000$20$1,500,00010,000 units60,000 units

Net income for the year 2015 is

Answer 8Choose...40%24,000 units$300,00040,000 units15,000 units37.5%$3,200,00020%30,000 units$3,500,000$1,300,00031,597 units$30$250,000$20$1,500,00010,000 units60,000 units

How many units must be sold to break even?

Answer 9Choose...40%24,000 units$300,00040,000 units15,000 units37.5%$3,200,00020%30,000 units$3,500,000$1,300,00031,597 units$30$250,000$20$1,500,00010,000 units60,000 units

The margin of Safety in units

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 Concepts And Methods A Guide To Current Auditing Theory And Practice

Authors: Mcgraw-Hill

5th Edition

0070099995, 978-0070099999

More Books

Students also viewed these Accounting questions