Question 1

Maddaloni International,Inc. ,produces and sells a single product.The product sells for $160.00 per unit and its variable expense is $46.40 per unit.The company's monthly fixed expense is $219,248.
Required:
Determine the monthly break-even in total dollar sales.Show your work!

Accepted Answer

The answer of Maddaloni International,Inc. ,produces and sells a single...

Question 2

Torbert,Inc. ,produces and sells a single product.The product sells for $190.00 per unit and its variable expense is $72.20 per unit.The company's monthly fixed expense is $353,400.
Required:
Determine the monthly break-even in unit sales.Show your work!

Accepted Answer

The answer of Torbert,Inc. ,produces and sells a single product.The...

Question 3

The selling price of Roscioli Corporation's only product is $210.00 per unit and its variable expense is $75.60 per unit.The company's monthly fixed expense is $537,600.
Required:
Assume the company's monthly target profit is $13,440.Determine the unit sales to attain that target profit.Show your work!

Accepted Answer

The answer of The selling price of Roscioli Corporation's only...

Question 4

Buccheri Corporation produces and sells a single product.Data concerning that product appear below:  Required:
Determine the monthly break-even in unit sales.Show your work!

Accepted Answer

The answer of Buccheri Corporation produces and sells a single...

Question 5

Data concerning Ulwelling Corporation's single product appear below:  Fixed expenses are $753,000 per month.The company is currently selling 8,000 units per month.
Required:
The marketing manager would like to introduce sales commissions as an incentive for the sales staff.The marketing manager has proposed a commission of $11 per unit.In exchange,the sales staff would accept an overall decrease in their salaries of $73,000 per month.The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units.What should be the overall effect on the company's monthly net operating income of this change? Show your work!

Accepted Answer

The answer of Data concerning Ulwelling Corporation's single product appear...

Question 6

Liest Corporation produces and sells a single product whose selling price is $100.00 per unit and whose variable expense is $48.00 per unit.The company's monthly fixed expense is $244,400.
Required:
a.Assume the company's monthly target profit is $5,200.Determine the unit sales to attain that target profit.Show your work!
b.Assume the company's monthly target profit is $26,000.Determine the dollar sales to attain that target profit.Show your work!

Accepted Answer

The answer of Liest Corporation produces and sells a single...

Question 7

The contribution margin ratio of Donath Corporation's only product is 65%.The company's monthly fixed expense is $573,300 and the company's monthly target profit is $9,100.
Required:
Determine the dollar sales to attain the company's target profit.Show your work!

Accepted Answer

The answer of The contribution margin ratio of Donath Corporation's...

Question 8

Data concerning Kurek Corporation's single product appear below:  Fixed expenses are $190,000 per month.The company is currently selling 4,000 units per month.
Required:
The marketing manager would like to cut the selling price by $12 and increase the advertising budget by $11,100 per month.The marketing manager predicts that these two changes would increase monthly sales by 1,500 units.What should be the overall effect on the company's monthly net operating income of this change? Show your work!

Accepted Answer

The answer of Data concerning Kurek Corporation's single product appear...

Question 9

Lopp Corporation produces and sells a single product.Data concerning that product appear below:  Required:
Assume the company's monthly target profit is $38,280.Determine the unit sales to attain that target profit.Show your work!

Accepted Answer

The answer of Lopp Corporation produces and sells a single...

Question 10

Koelsch Corporation's only product sells for $170 per unit.Its current sales are 43,600 units and its break-even sales are 39,240 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

The answer of Koelsch Corporation's only product sells for $170...

Question 11

Alcina Corporation produces and sells a single product whose contribution margin ratio is 80%.The company's monthly fixed expense is $576,000 and the company's monthly target profit is $43,200.
Required:
Determine the dollar sales to attain the company's target profit.Show your work!

Accepted Answer

The answer of Alcina Corporation produces and sells a single...

Question 12

Shauer,Inc. ,produces and sells a single product whose selling price is $150.00 per unit and whose variable expense is $33.00 per unit.The company's fixed expense is $436,410 per month.
Required:
Determine the monthly break-even in either unit or total dollar sales.Show your work!

Accepted Answer

The answer of Shauer,Inc. ,produces and sells a single product...

Question 13

Pultz Corporation produces and sells a single product.Data concerning that product appear below:  Required:
Determine the monthly break-even in total dollar sales.Show your work!

Accepted Answer

The answer of Pultz Corporation produces and sells a single...

Question 14

Grable Corporation produces and sells a single product.Data concerning that product appear below:  Fixed expenses are $628,000 per month.The company is currently selling 5,000 units per month.
Required:
The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $45,000 per month.The marketing manager predicts that these two changes would increase monthly sales by 800 units.What should be the overall effect on the company's monthly net operating income of this change? Show your work!

Accepted Answer

The answer of Grable Corporation produces and sells a single...

Question 15

Hirz Corporation produces and sells a single product.Data concerning that product appear below:  Required:
Determine the monthly break-even in either unit or total dollar sales.Show your work!

Accepted Answer

The answer of Hirz Corporation produces and sells a single...

Question 16

Data concerning Phung Corporation's single product appear below:  Fixed expenses are $991,000 per month.The company is currently selling 8,000 units per month.
Required:
The marketing manager believes that a $23,000 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change? Show your work!

Accepted Answer

The answer of Data concerning Phung Corporation's single product appear...

Question 17

Gauani Corporation produces and sells a single product.Data concerning that product appear below:  Required:
a.Assume the company's monthly target profit is $21,600.Determine the unit sales to attain that target profit.Show your work!
b.Assume the company's monthly target profit is $54,000.Determine the dollar sales to attain that target profit.Show your work!

Accepted Answer

The answer of Gauani Corporation produces and sells a single...

Question 18

Wrobbel Corporation produces and sells a single product.Data concerning that product appear below:  Fixed expenses are $307,000 per month.The company is currently selling 6,000 units per month.
Required:
Management is considering using a new component that would increase the unit variable cost by $2.Since the new component would improve the company's product,the marketing manager predicts that monthly sales would increase by 200 units.What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? Show your work!

Accepted Answer

The answer of Wrobbel Corporation produces and sells a single...

Question 19

Data concerning Sumter Corporation's single product appear below:  Fixed expenses are $1,024,000 per month.The company is currently selling 8,000 units per month.
Required:
Management is considering using a new component that would increase the unit variable cost by $6.Since the new component would improve the company's product,the marketing manager predicts that monthly sales would increase by 300 units.What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? Show your work!

Accepted Answer

The answer of Data concerning Sumter Corporation's single product appear...

Question 20

Moallankamp Corporation produces and sells a single product.Data concerning that product appear below:  Fixed expenses are $1,131,000 per month.The company is currently selling 7,000 units per month.
Required:
The marketing manager would like to introduce sales commissions as an incentive for the sales staff.The marketing manager has proposed a commission of $20 per unit.In exchange,the sales staff would accept an overall decrease in their salaries of $117,000 per month.The marketing manager predicts that introducing this sales incentive would increase monthly sales by 400 units.What should be the overall effect on the company's monthly net operating income of this change? Show your work!

Accepted Answer

The answer of Moallankamp Corporation produces and sells a single...

Quiz 6: Cost-Volume-Profit Relationships

Maddaloni International,Inc. ,produces and sells a single product.The product sells for $160.00 per unit and its variable expense is $46.40 per unit.The company's monthly fixed expense is $219,248. Required: Determine the monthly break-even in total dollar sales.Show your work!

Torbert,Inc. ,produces and sells a single product.The product sells for $190.00 per unit and its variable expense is $72.20 per unit.The company's monthly fixed expense is $353,400. Required: Determine the monthly break-even in unit sales.Show your work!

Buccheri Corporation produces and sells a single product.Data concerning that product appear below: Required: Determine the monthly break-even in unit sales.Show your work!

The contribution margin ratio of Donath Corporation's only product is 65%.The company's monthly fixed expense is $573,300 and the company's monthly target profit is $9,100. Required: Determine the dollar sales to attain the company's target profit.Show your work!

Lopp Corporation produces and sells a single product.Data concerning that product appear below: Required: Assume the company's monthly target profit is $38,280.Determine the unit sales to attain that target profit.Show your work!

Koelsch Corporation's only product sells for $170 per unit.Its current sales are 43,600 units and its break-even sales are 39,240 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.

Alcina Corporation produces and sells a single product whose contribution margin ratio is 80%.The company's monthly fixed expense is $576,000 and the company's monthly target profit is $43,200. Required: Determine the dollar sales to attain the company's target profit.Show your work!

Shauer,Inc. ,produces and sells a single product whose selling price is $150.00 per unit and whose variable expense is $33.00 per unit.The company's fixed expense is $436,410 per month. Required: Determine the monthly break-even in either unit or total dollar sales.Show your work!

Pultz Corporation produces and sells a single product.Data concerning that product appear below: Required: Determine the monthly break-even in total dollar sales.Show your work!

Hirz Corporation produces and sells a single product.Data concerning that product appear below: Required: Determine the monthly break-even in either unit or total dollar sales.Show your work!