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Reynold's Company has a product with fixed costs of $336,000, a unit selling price of $25, and unit variable costs of $19. The break-even sales
Reynold's Company has a product with fixed costs of $336,000, a unit selling price of $25, and unit variable costs of $19. The break-even sales (units) if the variable costs are decreased by $5 is Oa. 24,000 units Ob. 30,545 units Oc. 56,000 units Od. 17,684 units If fixed costs are $324,000, the unit selling price is $70, and the unit variable costs are $54, the old and new break-even sales (units), respectively, if the unit selling price increases by $5 are Oa. 20,250 units and 15,429 units Ob. 4,629 units and 20,250 units Oc. 6,000 units and 14,929 units Od. 20,250 units and 4,629 units Spice Inc.'s unit selling price is $46, the unit variable costs are $39, fixed costs are $112,000, and current sales are 9,100 units. How much will operating income change if sales increase by 5,400 units? Oa. $63,700 decrease Ob. $101,500 increase Oc. $37,800 increase Od. $63,700 increase A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units): Direct materials $80,000 Direct labor 120,000 Variable factory overhead 140,000 Fixed factory overhead 40,000 $380,000 Operating expenses: Variable operating expenses $65,000 Fixed operating expenses 25,000 90,000 If 600 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is: Oa. $34,000 Ob. $28,200 Oc. $24,300 Od. $22,800
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