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Which of the following is not an approach used to calculate the breakeven point? 0 A. The balance sheet approach O B. The shortcut approach
Which of the following is not an approach used to calculate the breakeven point? 0 A. The balance sheet approach O B. The shortcut approach using the contribution margin ratio C. The income statement approach 0 D. The shortcut approach using the unit contribution margin Tunnel Incorporated provided the following information regarding its single product Direct materials used Direct labor incurred Variable manufacturing overhead $150.000 $100.000 $55,000 $20,000 Variable seling and administrative expenses Fixed selling and administrative expenses The regular selling price for the product is $80. The annual quanitity of units produced and sold is 45,000 units (the costs above relate to the 45.000 units production level). The company has excess capacity and regular sales will not be aflected by this special order. There was no beginning inventory What would be the eflect on operating income of accepting a special onder for 1,450 units at a sale price of $43 per product? The special order units would not require any variable selling and administrative expenses. (Round any intermediary caloulations to the nearest cent Round your inal answer to the nearest dollar O A. Increase by $35.931 B, C. O D. Decrease by $35.931 increase by $26.419 Decrease by $26,419 The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows: Toaster Microwave Sales revenue Variable expenses Contribution margin Fixed expenses S650,000 $460,000 190,000 $90,000 Operating income (loss) $100,000 $(45,000) $55,000 Total $255,000 $905,000 $210,000 $670,000 $45,000 $235,000 $90,000 $180,000 If fixed costs remain unchanged and Germain Appliances discontinues the Microwave line, how will operating income change? O A. Will increase by $45,000 O B. Will decrease by $45,000 O C. Will increase by $180,000 O D. Will decrease by $180,000
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