Question 1

Yerkes Corporation makes a product that sells for $110 per unit.The product's current sales are 35,900 units and its break-even sales are 26,566 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

The answer of Yerkes Corporation makes a product that sells...

Question 2

Hounshell Corporation produces and sells a single product.Data concerning that product appear below:  Required:
a.Assume the company's monthly target profit is $20,880.Determine the unit sales to attain that target profit.Show your work!
b.Assume the company's monthly target profit is $6,960.Determine the dollar sales to attain that target profit.Show your work!

Accepted Answer

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

Question 3

Fietsam Corporation's only product sells for $120 per unit.Its current sales are 43,400 units and its break-even sales are 37,324 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

The answer of Fietsam Corporation's only product sells for $120...

Question 4

Speir Corporation's contribution format income statement for the most recent month follows:  Required:
a.Compute the degree of operating leverage to two decimal places.
b.Using the degree of operating leverage,estimate the percentage change in net operating income that should result from a 3% increase in sales.

Accepted Answer

The answer of Speir Corporation's contribution format income statement for...

Question 5

In the most recent month,Flamino Corporation's total contribution margin was $83,700 and its net operating income $21,200.
Required:
a.Compute the degree of operating leverage to two decimal places.
b.Using the degree of operating leverage,estimate the percentage change in net operating income that should result from a 17% increase in sales.

Accepted Answer

The answer of In the most recent month,Flamino Corporation's total...

Question 6

Langin Corporation has provided its contribution format income statement for June.  Required:
a.Compute the degree of operating leverage to two decimal places.
b.Using the degree of operating leverage,estimate the percentage change in net operating income that should result from a 14% increase in sales.

Accepted Answer

The answer of Langin Corporation has provided its contribution format...

Question 7

Gurr Corporation produces and sells a single product whose contribution margin ratio is 63%.The company's monthly fixed expense is $604,800 and the company's monthly target profit is $50,400.
Required:
Determine the dollar sales to attain the company's target profit.Show your work!

Accepted Answer

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

Question 8

The contribution margin ratio of Lukasiewicz Corporation's only product is 62%.The company's monthly fixed expense is $297,600 and the company's monthly target profit is $37,200.
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 Lukasiewicz Corporation's...

Question 9

Burtchell Corporation produces and sells a single product.Data concerning that product appear below:  Required:
Assume the company's monthly target profit is $47,520.Determine the unit sales to attain that target profit.Show your work!

Accepted Answer

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

Question 10

Deavila Inc.produces and sells two products.Data concerning those products for the most recent month appear below:  Fixed expenses for the entire company were $13,980.
Required:
a.Determine the overall break-even point for the company.Show your work!
b.If the sales mix shifts toward Product Q91I with no change in total sales,what will happen to the break-even point for the company? Explain.

Accepted Answer

The answer of Deavila Inc.produces and sells two products.Data concerning...

Question 11

Logiudice Inc.has provided the following data concerning its only product:  Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

The answer of Logiudice Inc.has provided the following data concerning...

Question 12

The selling price of Garey Corporation's only product is $170.00 per unit and its variable expense is $39.10 per unit.The company's monthly fixed expense is $641,410.
Required:
Assume the company's monthly target profit is $65,450.Determine the unit sales to attain that target profit.Show your work!

Accepted Answer

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

Question 13

Sadbury Corporation produces and sells a single product whose selling price is $210.00 per unit and whose variable expense is $73.50 per unit.The company's monthly fixed expense is $873,600.
Required:
a.Assume the company's monthly target profit is $27,300.Determine the unit sales to attain that target profit.Show your work!
b.Assume the company's monthly target profit is $68,250.Determine the dollar sales to attain that target profit.Show your work!

Accepted Answer

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

Question 14

Camden Inc.produces and sells two products.During the most recent month,Product M21B's sales were $35,000 and its variable expenses were $14,350.Product Y79X's sales were $20,000 and its variable expenses were $7,650.The company's fixed expenses were $30,820.
Required:
a.Determine the overall break-even point for the company.Show your work!
b.If the sales mix shifts toward Product M21B with no change in total sales,what will happen to the break-even point for the company? Explain.

Accepted Answer

The answer of Camden Inc.produces and sells two products.During the...

Quiz 4: Cost-Volume-Profit Relationships

Yerkes Corporation makes a product that sells for $110 per unit.The product's current sales are 35,900 units and its break-even sales are 26,566 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.

Fietsam Corporation's only product sells for $120 per unit.Its current sales are 43,400 units and its break-even sales are 37,324 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.

Gurr Corporation produces and sells a single product whose contribution margin ratio is 63%.The company's monthly fixed expense is $604,800 and the company's monthly target profit is $50,400. Required: Determine the dollar sales to attain the company's target profit.Show your work!

The contribution margin ratio of Lukasiewicz Corporation's only product is 62%.The company's monthly fixed expense is $297,600 and the company's monthly target profit is $37,200. Required: Determine the dollar sales to attain the company's target profit.Show your work!

Burtchell Corporation produces and sells a single product.Data concerning that product appear below: Required: Assume the company's monthly target profit is $47,520.Determine the unit sales to attain that target profit.Show your work!

Logiudice Inc.has provided the following data concerning its only product: Required: Compute the margin of safety in both dollars and as a percentage of sales.