Question
Zeke Company sells 24,000 units at $18 per unit. Variable costs are $10 per unit, and fixed costs are $10. The contribution margin ratio and
Zeke Company sells 24,000 units at $18 per unit. Variable costs are $10 per unit, and fixed costs are $10. The contribution margin ratio and the unit contribution margin are
2% and $18 per unit
2% and $10 per unit
44% and $8 per unit
44% and $18 per unit
A firm operated at 80% of capacity for the past year, during which fixed costs were $208,000, variable costs were 68% of sales, and sales were $988,000. Operating profit was
$86,528
$671,840
$316,160
$108,160
Spice Inc.'s unit selling price is $46, the unit variable costs are $33, fixed costs are $104,000, and current sales are 10,500 units. How much will operating income change if sales increase by 5,400 units?
$206,700 increase
$70,200 increase
$136,500 decrease
$136,500 increase
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