Question
Land costing $68,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement
Land costing $68,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?
A. | $50,000 | |
B. | $78,000 | |
C. | $118,000 | |
D. | $68,000 |
If fixed costs are $300,000, the unit selling price is $25, and the unit variable costs are $20, what is the break-even sales (units) if fixed costs are increased by $40,000?
A. | 52,000 units | |
B. | 60,000 units | |
C. | 68,000 units | |
D. | 62,000 units |
If fixed costs are $200,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit?
A. | 25,000 | |
B. | 20,000 | |
C. | 200,000 | |
D. | 10,000 |
Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $40,000?
A $10,000 increase
B. $10,000 decrease | ||
C. | $30,000 decrease | |
D. | $30,000 increase |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started