Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 9 of 14 1/3 III TOUR Twers party UL. Cullumber Company reports the following operating results for the month of August: sales $375,000 (units

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Question 9 of 14 1/3 III TOUR Twers party UL. Cullumber Company reports the following operating results for the month of August: sales $375,000 (units 5,000), variable costs $246,000, and fixed costs $97,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 12% with no change in total variable costs or units sold. 2. Reduce variable costs to 69% of sales. Compute the net income to be earned under each alternative. 1. Net Income $ 2. Net Income $ Which course of action will produce the higher net income? Alternative 1 e Textbook and Media Attempts: unlimited Submit Answer Question 10 of 14 -13 Carla Vista Company estimates that variable costs will be 60.00% of sales, and fixed costs will total $560,000. The selling price of the product is $8. (a) Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales $ e Textbook and Media (c) Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. Question 10 of 14 e Textbook and Media (c) Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. (1) Margin of safety $ 12) % Margin of safety ratio Question 11 of 14 -13 The controller of Blossom Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Machine Hours Month January February March April May June Total Maintenance Costs $2,590 2.890 3.490 4,390 3,090 5,390 330 380 530 660 530 730 (a 1) Determine the variable cost components using the high-low method. (Round answer to 2 decimal places eg. 2.25.) S Variable cost per machine hour Question 11 of 14 -13 (a1) Determine the variable cost components using the high-low method. (Round answer to 2 decimal places eg. 2.25.) Variable cost per machine hour $ e Textbook and Media (a2) Determine the fixed cost components using the high-low method, Total fixed costs $ e Textbook and Media

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

Fundamental Accounting Principles Volume 2

Authors: Kermit Larson, Heidi Dieckmann

15th Canadian Edition

1259087360, 9781259087363

More Books

Students also viewed these Accounting questions

Question

2. Are there more men or women? (find statistics)

Answered: 1 week ago

Question

understand how design and writing connect in mass communication.

Answered: 1 week ago

Question

Who is the audience?

Answered: 1 week ago