Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the below information to answer the following FOUR questions (numbered 8 through 11). Given below is the contribution format income statement for Tiler Company
Use the below information to answer the following FOUR questions (numbered 8 through 11). Given below is the contribution format income statement for Tiler Company for last month. There are no balances in beginning and ending inventories, and the number of units produced and sold during the month is 40.000 units. Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income $7,000,000 4,200,000 2,800,000 1.400.000 $1.400.000 8. What is the break-even point in units? * 4 points 20,000 units 30,000 units 40,000 units 60,000 units None of the above 9. What is the company's margin of safety in dollars? * 4 points $1,400,000 $2,800,000 $3,500,000 $7,000,000 None of the above 4 points 10. If the sales volume increases by 600 units, and all other items are the same, by how much will the net operating income increase? The net operating income will increase by $42,000 The net operating income will increase by $105,000 The net operating income will increase by $1,358,000 The net operating income will increase by $1,442,000 None of the above 11. What is the number of units that should be sold to attain a target profit 4 poir of $1,750,000?* 25,000 units 40,000 units 45,000 units 65,000 units None of the above 1. Arranging for a shipment of a number of different products to a customer is considered as a(n):* Unit-level activity Batch-level activity Product-level activity Organization-sustaining activity None of the above 2. Henio Company is considering two alternatives: Alternative A and Alternative B. Given below are the costs associated with the alternatives. What is the differential cost of Alternative A over Alternative B, including all the relevant costs? Cost Material Cost Processing Cost Equipment Rental Occupancy Cost Alternative A $237,000 $180,000 $120,000 $67,000 Alternative B $155,000 $147,000 $120,000 $50,000 $132,000 $472,000 $484,000 $604,000 None of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started