Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Reb Ltd sells a single product for $39. its management estimates the following revenues and costs for the year 2020: Net sales 650,000 selling expenses

Reb Ltd sells a single product for $39. its management estimates the following revenues and costs for the year 2020:

Net sales 650,000 selling expenses - variable 20,000
Direct materials 85,000 selling expenses - fixed 25,000
Direct labour 70,000 admin expenses - variable 5,000
mfg overhead- variable 35,000 admin expenses - fixed 10,000
mfg overhead- fixed 25,000

What is Rebs contribution margin per unit? a)$26.10 , b)29.70 , c)27.60 , d)28.20?

What is Rebs contribution margin ratio? 76.20%, 72.30, 70.80, 66.90?

What is Rebs breakeven point in dollars? a) $89,655 b) 78,740 c) 82,988 d) 84,746

What is Rebs margin of safety in units a) 2,020 b) 2,174 c) 2,128 d) 2,299

What is Rebs operating income a) 375k b) 435k c) 410k d) 400k

What is Rebs operating income if it increases its selling price by 25% and all other factors (including demand) remain constant a) 478,750 b) 622,500 c) 483,750 d) 537,500

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

Information Technology Auditing

Authors: Hall, J Scott Harr

3rd Edition

1133008046, 978-1439079119

More Books

Students also viewed these Accounting questions

Question

Does mind reading help or hinder communication?

Answered: 1 week ago