Question
Question 6 XYZ Inc. sells a single product for $20 per unit. Variable production costs are $4 per unit. Fixed overhead costs amount $10,000 per
Question 6
XYZ Inc. sells a single product for $20 per unit. Variable production costs are $4 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $4 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. By how much would the company's net operating income increase if selling price was increased by $5 per unit? Assume no change in sales volume.
a.
$8,000
b.
$20,000
c.
$40,000
d.
$12,000
Question 7
XYZ Inc. sells a single product for $10 per unit. Variable production costs are $7 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $1 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What is ABC's contribution margin per unit?
a.
$5
b.
$2
c.
$10
d.
$6
Question 8
XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit. Fixed overhead costs amount $50,000 per month. Variable selling costs are $4 per unit. Fixed selling costs are $30,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. How many units must the company sell to achieve a pre-tax profit of $480,000?
a.
$20,000
b.
$26,667
c.
$30,000
d.
$70,000
Question 9
XYZ Inc. sells a single product for $25 per unit. Variable production costs are $10 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $5 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What is ABC's contribution margin ratio?
a.
30%
b.
50%
c.
10%
d.
40%
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