Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The relationship between fxed costs and variable costs, and total and per unit measures is as follows a. Fioxed costs are variable in their totality

image text in transcribed
The relationship between fxed costs and variable costs, and total and per unit measures is as follows a. Fioxed costs are variable in their totality and fixed per unit c. Variable costs are variable in their totaity and fxed per unit d. Fixed costs are variable in their totality and variable per 18. Amato, Inc has a sales price per unit of $70, variable cost per unit of $55, total f $150,000, and it manufactured and sold 100,000 units; determine its degree of ope leverage (DOL) a. 2 times b. 3 times 1.5 times d. cannot be determined with the information provided 19. What contribution margin would be needed if a firm lost $400.000, with total fixed costs of $800,000, and 50,000 units were produced and sold a. $24 b. $16 C.$8 d. Cannot be determined from the information provided. 20. What amount of funds must a firm have stored if it is to provide a margin of safety of 20% should its unit sales fall by this percentage, given that original expected unit sales were 6,000 units sales price per unit was $30, variable cost per unit was $15, and fixed costs were $50,000? a. $6,000 b. $18,000 c. $24,000 d. Cannot be determined from the information provided

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

Auditing And Assurance Services

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley

12th Edition

0136128270, 9780136128274

More Books

Students also viewed these Accounting questions