Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with question 35 Question 33-36 Marcotti's contribution margin income statement is shown below. The sales revenue is based upon having sold 30,000

image text in transcribed

Please help me with question 35

Question 33-36 Marcotti's contribution margin income statement is shown below. The sales revenue is based upon having sold 30,000 units at a price of 100 per unit. 358O000 3,000,000 1,800,000 Sales Variable costs Contribution Margin Fixed costs Income from operations 1,200,000/30000 = 40 CCMlumil) 940,000 260,000 33. Marcotti's current break-even production level is A) 21,500 units B) 9,400 units 23,500 units 15,667 units 940000 90 34. Marcotti's management is considering a proposal that would require additional fixed costs of 200,000. The relationship between price and variable costs is not expected to change, and the proposal would generate an additional 550,000 in sales. If Marcotti proceeds with the proposed project, its break-even point will change to: A) 55,250 units B) 19,000 units C) 11,400 units D) 28,500 units 2ook +940k 90. 35. Consider the proposal described in question 34. If Marcotti proceeds with the proposed project and if the sales projections turn out to be correct, it will generate income from operations of A) 810,000 B) 3,550,000 C) 280,000 D) 610,000

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_2

Step: 3

blur-text-image_3

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

Financial Accounting

Authors: Harrison, Horngren, Thomas

1st Edition

0558823513, 978-0558823511

More Books

Students also viewed these Accounting questions