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mag acouting Assume the following cost information for Murray River Company: Selling price $240 per unit Variable costs $140 per unit Total fixed costs $140

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mag acouting

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Assume the following cost information for Murray River Company: Selling price $240 per unit Variable costs $140 per unit Total fixed costs $140 000 Tax rate 40% If the tax rate is t, it is possible to calculate planned prot before tax by: O dividing net profit after tax by 1- t. O multiplying net profit after tax by 1- t. O multiplying net profit after tax by t. O dividing net profit after tax by t. Assume the following cost information for Murray River Company: Selling price $240 per unit Variable costs $140 per unit Total fixed costs $140 000 Tax rate 40% In CVP analysis, focusing on target net profit after tax rather than operating prot before tax: 0 will increase the break-even point. 0 will not change the break-even point. 0 will decrease the break-even point. 0 does not allow calculation of break-even point. Gundagai Company sells several products. Information of average revenue and costs is as follows: _ m Manufacturing overhead $0.25 Selling costs $1.85 The number of units that Gundagai must sell annually to make a prot of $90 000 is: O 10 000 units. 0 12 000 units. 0 15 000 units. 0 20 000 units. Ghan Manufacturing produces a single product that sells for $80. Variable costs per unit equal $32. The company expects total xed costs to be $72 000 for the next month at the projected sales level of 2000 units. In an attempt to improve performance, management is considering a number ofalternative actions. Each situation is to be evaluated separately. Suppose that management believes that a 10% reduction in the selling price will result in a 10% increase in sales. If this proposed reduction in selling price is implemented: 0 operating profit will decrease by $8000. 0 operating profit will increase by $8000. 0 operating profit will increase by $16 000. operating profit will decrease by $16 000. The following information is for theleffries Corporation: Product A: Revenue $16.00 Variable Cost $12.00 Product 8: Revenue $24.00 Variable Cost $16.00 Total fixed costs $75 000 If the sales mix shifts to four units of ProductA and one unit of Product B, then the weighted-average contribution margin will: 0 stay the same. 0 decrease per unit. 0 increase per unit. 0 be indeterminable. Assume the following cost information for Murray River Company: Selling price $240 per unit Variable costs $140 per unit Total fixed costs $140 000 Tax rate 40% In CVP analysis, focusing on target net profit after tax rather than operating prot before tax: 0 will increase the break-even point. C) will not change the break-even point. 0 will decrease the break-even point. 0 does not allow calculation of break-even point. Gundagai Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.25 Direct manufacturing labour $1.15 Manufacturing overhead $0.25 Selling costs $1.85 Annual fixed costs $110 000 All of the following are assumed in the above analysis EXCEPT: O a constant product mix. cost and revenue relationships are reflected accurately. O per unit variable costs increase when activity increases. all costs can be classified as either fixed or variable

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