Question 1

Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the 
(a) break-even point in sales units and 
(b) break-even point in sales units if the selling price increased to $100 per unit. If required, round answer to nearest whole number.

Accepted Answer

The answer of Mia Enterprises sells a product for $90...

Question 2

The manufacturing costs of Mocha Industries for three months of the year are provided below.​  Using the high-low method, determine the 
(a) variable cost per unit and 
(b) the total fixed costs. If required, round answer to the nearest cent.

Accepted Answer

The answer of The manufacturing costs of Mocha Industries for...

Question 3

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and loss from operations is $ (50,000). Determine the  (a) unit contribution margin  (b) contribution margin ratio, and  (c) fixed costs per unit at production of 25,000 units. If required, round to two decimal places.

Accepted Answer

The answer of Penny Company sells 25,000 units at $59...

Question 4

Consider the following information:?Variable cost per unit = $5July fixed cost per unit = $7Units sold and produced in July = 28,000?What is the total estimated cost for August if 30,000 units are projected to be produced and sold?

Accepted Answer

The answer of Consider the following information:?Variable cost per unit...

Question 5

The cost graphs below show various types of cost behaviors.For each of the following costs, identify the cost graph that best describes its cost behavior as the number of units produced and sold increases:  (a)Sales commissions of $6,000 plus $0.05 for each item sold
(b)Rent on warehouse of $12,000 per month
(c)Insurance costs of $2,500 per month
(d)Per-unit cost of direct labor
(e)Total salaries of quality control supervisors 
(One supervisor must be added for each additional work shift.)
(f)Total employer pension costs of $0.35 per direct labor hour
(g)Per-unit straight-line depreciation costs
(h)Per-unit cost of direct materials
(i)Total direct materials cost
(j)Electricity costs of $5,000 per month plus $0.0004 per kilowatt-hour
(k)Per-unit cost of plant superintendent's salary
(l)Salary of the night-time security guard of $3,800 per month
(m)Repairs and maintenance costs of $3,000 for each 2,000 hours of factory machine usage
(n)Total direct labor cost
(o)Straight-line depreciation on factory equipment

Accepted Answer

The answer of The cost graphs below show various types...

Question 6

Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000.?Determine the 
(a) unit sales price and 
(b) break-even point in sales units if the company desires a target profit of $36,000. If required, round answer to nearest whole number.

Accepted Answer

The answer of Atlantic Company sells a product with a...

Question 7

Copper Hill Inc. manufactures laser printers within a relevant range of production of 70,000 to 100,000 printers per year. The following partially completed manufacturing cost schedule has been prepared:Number of Printers Produced70,00090,000100,000Total costs:   ??Complete the preceding cost schedule, identifying each cost by the appropriate letter 
(a-o).

Accepted Answer

The answer of Copper Hill Inc. manufactures laser printers within...

Question 8

The following is a list of various costs of producing T-shirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.
(a)Ink used for screen printing
(b)Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used
(c)Thread
(d)Electricity costs of $0.038 per kilowatt-hour
(e)Janitorial costs of $4,000 per month
(f)Advertising costs of $12,000 per month
(g)Accounting salaries
(h)Color dyes for producing different colors of T-shirts
(i)Salary of the production supervisor
(j)Straight-line depreciation on sewing machines
(k)Salaries of internal pattern designers
(l)Hourly wages of sewing machine operators
(m)Property taxes on factory, building, and equipment
(n)Cotton and polyester cloth
(o)Maintenance costs with sewing machine company 
(The cost is $2,000 per year plus $0.001 for each machine hour of use.)

Accepted Answer

The answer of The following is a list of various...

Question 9

Douglas Company has a contribution margin ratio of 30%. If Douglas has $336,420 in fixed costs, what amount of sales will need to be generated in order for the company to break even?

Accepted Answer

The answer of Douglas Company has a contribution margin ratio...

Question 10

Blane Company has the following data:Total sales$800,000Total variable costs$300,000Fixed costs$200,000Units sold50,000 units​What will operating income be if units sold double to 100,000 units?

Accepted Answer

The answer of Blane Company has the following data:Total sales$800,000Total...

Question 11

The manufacturing cost of Carrie Industries for the first three months of the year are provided below.?  Using the high-low method, determine the  (a) variable cost per unit and  (b) the total fixed cost. If required, round answer to the nearest cent.

Accepted Answer

The answer of The manufacturing cost of Carrie Industries for...

Question 12

​
(a) If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio?
(b) If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

Accepted Answer

The answer of ​
(a) If Swannanoa Company's budgeted sales are...

Question 13

Carrolton, Inc. currently sells widgets for $80 per unit. The variable cost is $30 per unit, and total fixed costs equal $240,000 per year. Sales are currently 20,000 units annually.
?The company is considering a 20% drop in selling price that it believes will raise units sold by 20%. Assuming all costs stay the same, what is the impact on income if this change is made?

Accepted Answer

The answer of Carrolton, Inc. currently sells widgets for $80...

Question 14

Bluegill Company sells 45,000 units at $18 per unit. Fixed costs are $62,000, and income from operations is $298,000. Determine the 
(a) variable cost per unit, 
(b) unit contribution margin, and 
(c) contribution margin ratio.

Accepted Answer

The answer of Bluegill Company sells 45,000 units at $18...

Question 15

Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while fixed costs are $85,000. Determine the 
(a) break-even point in sales units and 
(b) break-even point in sales units if the selling price increased to $80 per unit. Round your answer to the nearest whole number.

Accepted Answer

The answer of Gladstorm Enterprises sells a product for $60...

Question 16

Waterfall Company sells a product for $150 per unit. The variable cost is $80 per unit, and fixed costs are $270,000.?Determine the 
(a) break-even point in sales units and 
(b) break-even point in sales units if the company desires a target profit of $36,000. Round answer to the nearest whole number.

Accepted Answer

The answer of Waterfall Company sells a product for $150...

Question 17

Global Publishers has collected the following data for recent months:  ?Required
(a) Using the high-low method, find the variable cost per unit and total fixed costs.
(b) What is the estimated cost for a month in which 19,000 issues are published?If required, round answer to the nearest cent.

Accepted Answer

The answer of Global Publishers has collected the following data...

Question 18

For the current year ending January 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a new wage contract will increase the unit variable cost to $55.50. The selling price of $70.00 per unit is expected to remain the same.
(a)Compute the break-even sales 
(units) for the current year. Round answer to the nearest whole number.
(b)Compute the anticipated break-even sales 
(units) for the coming year, assuming the new wage contract is signed.

Accepted Answer

The answer of For the current year ending January 31,...

Question 19

Louis Company sells a single product at a price of $65 per unit. Variable costs per unit are $45, and total fixed costs are $625,500. Louis is considering the purchase of a new piece of equipment that would increase the fixed costs to $800,000, but decrease the variable costs per unit to $42.

Required
If Louis Company expects to sell 44,000 units next year, should it purchase this new equipment?

Accepted Answer

The answer of Louis Company sells a single product at...

Question 20

Consider the following:
?Variable cost as a percentage of sales = 60%
Unit variable cost = $30
Fixed costs = $200,000
?What is the break-even point in units? If required, round answer to nearest whole number.

Accepted Answer

The answer of Consider the following:
?Variable cost as a percentage...

Quiz 21: Cost-Volume-Profit Analysis

The manufacturing costs of Mocha Industries for three months of the year are provided below. Using the high-low method, determine the (a) variable cost per unit and (b) the total fixed costs. If required, round answer to the nearest cent.

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and loss from operations is $ (50,000). Determine the (a) unit contribution margin (b) contribution margin ratio, and (c) fixed costs per unit at production of 25,000 units. If required, round to two decimal places.

Consider the following information:?Variable cost per unit = $5July fixed cost per unit = $7Units sold and produced in July = 28,000?What is the total estimated cost for August if 30,000 units are projected to be produced and sold?

Douglas Company has a contribution margin ratio of 30%. If Douglas has $336,420 in fixed costs, what amount of sales will need to be generated in order for the company to break even?

Blane Company has the following data:Total sales$800,000Total variable costs$300,000Fixed costs$200,000Units sold50,000 unitsWhat will operating income be if units sold double to 100,000 units?

The manufacturing cost of Carrie Industries for the first three months of the year are provided below.? Using the high-low method, determine the (a) variable cost per unit and (b) the total fixed cost. If required, round answer to the nearest cent.

(a) If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? (b) If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

Bluegill Company sells 45,000 units at $18 per unit. Fixed costs are $62,000, and income from operations is $298,000. Determine the (a) variable cost per unit, (b) unit contribution margin, and (c) contribution margin ratio.

Waterfall Company sells a product for $150 per unit. The variable cost is $80 per unit, and fixed costs are $270,000.?Determine the (a) break-even point in sales units and (b) break-even point in sales units if the company desires a target profit of $36,000. Round answer to the nearest whole number.

Global Publishers has collected the following data for recent months: ?Required (a) Using the high-low method, find the variable cost per unit and total fixed costs. (b) What is the estimated cost for a month in which 19,000 issues are published?If required, round answer to the nearest cent.

Consider the following: ?Variable cost as a percentage of sales = 60% Unit variable cost = $30 Fixed costs = $200,000 ?What is the break-even point in units? If required, round answer to nearest whole number.

Quiz 21: Cost-Volume-Profit Analysis

The manufacturing costs of Mocha Industries for three months of the year are provided below.​ Using the high-low method, determine the (a) variable cost per unit and (b) the total fixed costs. If required, round answer to the nearest cent.

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and loss from operations is $ (50,000). Determine the (a) unit contribution margin (b) contribution margin ratio, and (c) fixed costs per unit at production of 25,000 units. If required, round to two decimal places.

Consider the following information:?Variable cost per unit = $5July fixed cost per unit = $7Units sold and produced in July = 28,000?What is the total estimated cost for August if 30,000 units are projected to be produced and sold?

Douglas Company has a contribution margin ratio of 30%. If Douglas has $336,420 in fixed costs, what amount of sales will need to be generated in order for the company to break even?

Blane Company has the following data:Total sales$800,000Total variable costs$300,000Fixed costs$200,000Units sold50,000 units​What will operating income be if units sold double to 100,000 units?

The manufacturing cost of Carrie Industries for the first three months of the year are provided below.? Using the high-low method, determine the (a) variable cost per unit and (b) the total fixed cost. If required, round answer to the nearest cent.

​ (a) If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? (b) If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?

Bluegill Company sells 45,000 units at $18 per unit. Fixed costs are $62,000, and income from operations is $298,000. Determine the (a) variable cost per unit, (b) unit contribution margin, and (c) contribution margin ratio.

Global Publishers has collected the following data for recent months: ?Required (a) Using the high-low method, find the variable cost per unit and total fixed costs. (b) What is the estimated cost for a month in which 19,000 issues are published?If required, round answer to the nearest cent.

Consider the following: ?Variable cost as a percentage of sales = 60% Unit variable cost = $30 Fixed costs = $200,000 ?What is the break-even point in units? If required, round answer to nearest whole number.

The manufacturing costs of Mocha Industries for three months of the year are provided below. Using the high-low method, determine the (a) variable cost per unit and (b) the total fixed costs. If required, round answer to the nearest cent.

Blane Company has the following data:Total sales$800,000Total variable costs$300,000Fixed costs$200,000Units sold50,000 unitsWhat will operating income be if units sold double to 100,000 units?

(a) If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? (b) If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income?