Question

Broad Brush Painting Company has prepared the following projections for its residential painting business for 2020:

Broad Brush Painting Company Data

Budgeted number of customers

1,000

Budgeted average contract price

$800

Budget variable costs per job

$300

Budgeted annual fixed costs

$200,000

Compute each of the following and match it with the correct answer:

Question

Selected Match

Budgeted contribution margin

Budgeted net income

Net income if sales volume is 10 percent lower than expected

Net income if sales volume is 10 percent higher than expected

Net income if sales price is 10 percent lower than expected

Net income if sales price is 10 percent higher than expected

Net income if variable costs per job are 10 percent lower than expected

Net income if variable costs per job are 10 percent higher than expected

Net income if fixed costs are 10 percent lower than expected

Net income if fixed costs are 10 percent higher than expected

Using the original data, the amount the contract price would have to change to increase net income to $345,000

Using the original data, the amount the variable cost per job would have to change to increase net income to $398,000

All Answer Choices

a.

202

b.

845

c.

220,000

d.

250,000

e.

270,000

f.

280,000

g.

300,000

h.

320,000

i.

330,000

j.

350,000

k.

380,000

l.

500,000