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there are 3 questions A business has a monthly target operating income of $6,000. Variable expenses are 25% of sales and monthly fixed expenses are
there are 3 questions
A business has a monthly target operating income of $6,000. Variable expenses are 25% of sales and monthly fixed expenses are $12,800. a. What is the monthly margin of safety in dollars if the business achieves its operating income goal? Oa. Ob. Oc. $8,533.33 $25,600 $8,000 d.$9,500.33 b. What is Operating leverage factor at the target level of operating income? Oa. 3.13 Ob. 2.7 Oc. 3 Od.2.64 c. If sales increases by 20%, by what percentage will the operating income increase? Oa.20% Ob.56.12% Oc. 60% Od.62.6% The following information is provided by a company: WIP inventory, January 1 O units Units started 12,000 Units completed and transferred out 8,000 WIP inventory, December 31 4,000 Direct materials $26,700 Direct labour $15,400 Manufacturing overhead $9,000 The units in ending WIP inventory were 70% complete for materials and 60% complete for conversion costs. At the end of the year, a. What are the total equivalent units for direct materials for the company if all manufacturing costs are added during the process? Oa. 10,800 Ob. 3,200 Oc. 11,200 Od. 12,000 b. What are the equivalent units for conversion costs for the company if all manufacturing costs are added during the process? Oa 8000 On 9600 Oc1600 $ 10.400 A Factory produces and sells specialty fudge. The selling price per pound is $20, variable costs are $8 per pound, and total fixed costs are $9,000. How many pounds of fudge must The Sweet Factory sell to break-even? Oa.188 Ob. 500 Oc.15,000 Od.750 What are break-even sales in dollars at The Sweet Factory? Oa. $10,000 Ob. $3,750 Oc. $15,000 Od.$750 How many pounds of fudge must The Sweet Factory sell to make $9,000 operating income? Oa. 1,500 Ob. 3,750 Oc. 1,250 Od.750 Step by Step Solution
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