The following information about ABC Inc. is useful in answering questions 1,2 , and 3 : ABC makes only one type of product. Use these two years, and the high and low method, to estimate the variable cost per unit of product: Question 2 (1 point) Using the information above, estimate the total fixed cost per year: What would you have to assume if you were to use the information above to estimate 2020 costs? (List two things.) The following information is useful in the remaining questions: Acme, Inc. sells only one type of product. And it produced and sold 5,000 units of that product last year. Its financial results for the previous year were as follows: From the information provided, what is the contribution margin per unit? Question 5 (1 point) So, what is the Break-even sales volume in units? A If sales volume were to increase by 500 units, to a total of 5,500 units, what should net income be? Question 7 (1 point) What is Acme's operating leverage for 2019? A Question 8 (2 points) If Acme's competitor, Boron, has an operating leverage of 2.0 , what does this suggest about Acme compared to Boron? (List two things.) Acme is considering the purchase of a new machine costing $10,000. This machine would increase production quality, reducing variable cost per unit by 20%. (Everything else would remain the same.) Calculate the new break-even point in sales dollars. The following information about ABC Inc. is useful in answering questions 1,2 , and 3 : ABC makes only one type of product. Use these two years, and the high and low method, to estimate the variable cost per unit of product: Question 2 (1 point) Using the information above, estimate the total fixed cost per year: What would you have to assume if you were to use the information above to estimate 2020 costs? (List two things.) The following information is useful in the remaining questions: Acme, Inc. sells only one type of product. And it produced and sold 5,000 units of that product last year. Its financial results for the previous year were as follows: From the information provided, what is the contribution margin per unit? Question 5 (1 point) So, what is the Break-even sales volume in units? A If sales volume were to increase by 500 units, to a total of 5,500 units, what should net income be? Question 7 (1 point) What is Acme's operating leverage for 2019? A Question 8 (2 points) If Acme's competitor, Boron, has an operating leverage of 2.0 , what does this suggest about Acme compared to Boron? (List two things.) Acme is considering the purchase of a new machine costing $10,000. This machine would increase production quality, reducing variable cost per unit by 20%. (Everything else would remain the same.) Calculate the new break-even point in sales dollars
