Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 21 Atlanta, Inc. produces a single product and reports the following data: = . . Sales price $8.50 per unit Variable cost = $5.25

image text in transcribed

QUESTION 21 Atlanta, Inc. produces a single product and reports the following data: = . . Sales price $8.50 per unit Variable cost = $5.25 per unit Fixed cost = $22,000 per month Current sales volume = 10,000 units per month The firm believes that its sales volume will go up to 12,000 units if the sales price is reduced to $7.50. How would this change affect the firm's operating income? A. Income will decrease by $10,500 B. Income will increase by $5,500 o C. Income will decrease by $5,500 O D. Income will increase by $10,500 QUESTION 22 Honolulu, Inc. produces sells its product for $800 per unit. Variable costs are $470 per unit, and fixed costs are $10,230 per month. If the firm expects to sell 60 units next month, what is the firm's margin of safety in sales revenue for next month? A. $48,000 O B. $23,200 o C. $24,800 OD. $13,630 QUESTION 23 Boise, Inc. makes two products. Product X has a contribution margin of $4.00 per unit, and Boise expects to sell 2,500 units of X next month. Product Y has a contribution margin of $4.80 per unit, and Boise expects to sell 2,000 units of Y next month. What is the weighted-average contribution per unit of the mix? (Round your answer to the nearest cent.) O A. $4.36 B. $8.80 O C. $4.40 O D. $4.44

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 A Practical Approach with Data Analytics

Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton

1st edition

1119401747, 978-1119401742

Students also viewed these Accounting questions

Question

8-16 Describe some of the weaknesses exploited by malware.

Answered: 1 week ago