Question 1

Guagliano Corporation produces and sells a single product whose selling price is $110.00 per unit and whose variable expense is $29.70 per unit.The company's monthly fixed expense is $345,290.
Required:
a.Assume the company's monthly target profit is $16,060.Determine the unit sales to attain that target profit.Show your work!
b.Assume the company's monthly target profit is $40,150.Determine the dollar sales to attain that target profit.Show your work!

Accepted Answer

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

Question 2

Sperazza International,Inc. ,produces and sells a single product.The product sells for $240.00 per unit and its variable expense is $96.00 per unit.The company's monthly fixed expense is $699,840.
Required:
Determine the monthly break-even in total dollar sales.Show your work!

Accepted Answer

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

Question 3

Butremovic 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 an 8% increase in sales.

Accepted Answer

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

Question 4

Longiotti 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 Longiotti Corporation produces and sells a single...

Question 5

Stanger Inc.produces and sells two products.Data concerning those products for the most recent month appear below:   
Fixed expenses for the entire company were $17,570.
Required:
a.Determine the overall break-even point for the company.Show your work!
b.If the sales mix shifts toward Product N16S with no change in total sales,what will happen to the break-even point for the company? Explain.

Accepted Answer

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

Question 6

Swem Corporation makes a product that sells for $110 per unit.The product's current sales are 17,700 units and its break-even sales are 14,337 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

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

Question 7

Heckaman 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 Heckaman Corporation produces and sells a single...

Question 8

Titlow,Inc. ,produces and sells a single product.The product sells for $220.00 per unit and its variable expense is $57.20 per unit.The company's monthly fixed expense is $713,064.
Required:
Determine the monthly break-even in unit sales.Show your work!

Accepted Answer

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

Question 9

Penury Company offers two products.At present,the following represents the usual results of a month's operations:  
Required:
a.Find the break-even point in dollars.
b.Find the margin of safety in dollars.
c.The company is considering decreasing product K's unit sales to 80,000 and increasing product L's unit sales to 180,000,leaving unchanged the selling price per unit,variable expense per unit,and total fixed expenses.Would you advise adopting this plan?
d.Refer to (c)above.Under the new plan,find the break-even point in dollars.
e.Under the new plan in (c)above,find the margin of safety in dollars.

Accepted Answer

The answer of Penury Company offers two products.At present,the following...

Question 10

Dagnan Corporation produces and sells a single product whose contribution margin ratio is 66%.The company's monthly fixed expense is $667,920 and the company's monthly target profit is $72,600.
Required:
Determine the dollar sales to attain the company's target profit.Show your work!

Accepted Answer

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

Question 11

Arzola Corporation produces and sells a single product.Data concerning that product appear below:  
Required:
Assume the company's monthly target profit is $17,080.Determine the unit sales to attain that target profit.Show your work!

Accepted Answer

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

Question 12

In the most recent month,Eckstrom Corporation's total contribution margin was $208,000 and its net operating income $39,400.
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 1% increase in sales.

Accepted Answer

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

Question 13

Mitzel Corporation has provided its contribution format income statement for May. 
 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 an 18% increase in sales.

Accepted Answer

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

Question 14

Churchwell Corporation produces and sells a single product.Data concerning that product appear below:  
Required:
a.Assume the company's monthly target profit is $69,000.Determine the unit sales to attain that target profit.Show your work!
b.Assume the company's monthly target profit is $41,400.Determine the dollar sales to attain that target profit.Show your work!

Accepted Answer

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

Question 15

Madlem,Inc. ,produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $86.40 per unit.The company's fixed expense is $720,384 per month.
Required:
Determine the monthly break-even in either unit or total dollar sales.Show your work!

Accepted Answer

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

Question 16

Suermann Corporation's only product sells for $140 per unit.Its current sales are 17,500 units and its break-even sales are 14,350 units.
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

Accepted Answer

The answer of Suermann Corporation's only product sells for $140...

Question 17

Aziz 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 Aziz Corporation produces and sells a single...

Question 18

Dampf 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 Dampf Inc.has provided the following data concerning...

Question 19

The contribution margin ratio of Thronson Corporation's only product is 69%.The company's monthly fixed expense is $455,400 and the company's monthly target profit is $41,400.
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 Thronson Corporation's...

Question 20

Torri Inc.produces and sells two products.During the most recent month,Product C34M's sales were $25,000 and its variable expenses were $5,750.Product Y03Z's sales were $40,000 and its variable expenses were $9,850.The company's fixed expenses were $48,310. 
Required:
a.Determine the overall break-even point for the company.Show your work!
b.If the sales mix shifts toward Product C34M with no change in total sales,what will happen to the break-even point for the company? Explain.

Accepted Answer

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

Quiz 4: Cost-Volume-Profit Relationships

Sperazza International,Inc. ,produces and sells a single product.The product sells for $240.00 per unit and its variable expense is $96.00 per unit.The company's monthly fixed expense is $699,840. Required: Determine the monthly break-even in total dollar sales.Show your work!

Longiotti 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!

Swem Corporation makes a product that sells for $110 per unit.The product's current sales are 17,700 units and its break-even sales are 14,337 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.

Heckaman 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!

Titlow,Inc. ,produces and sells a single product.The product sells for $220.00 per unit and its variable expense is $57.20 per unit.The company's monthly fixed expense is $713,064. Required: Determine the monthly break-even in unit sales.Show your work!

Dagnan Corporation produces and sells a single product whose contribution margin ratio is 66%.The company's monthly fixed expense is $667,920 and the company's monthly target profit is $72,600. Required: Determine the dollar sales to attain the company's target profit.Show your work!

Arzola Corporation produces and sells a single product.Data concerning that product appear below: Required: Assume the company's monthly target profit is $17,080.Determine the unit sales to attain that target profit.Show your work!

Madlem,Inc. ,produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $86.40 per unit.The company's fixed expense is $720,384 per month. Required: Determine the monthly break-even in either unit or total dollar sales.Show your work!

Suermann Corporation's only product sells for $140 per unit.Its current sales are 17,500 units and its break-even sales are 14,350 units. Required: Compute the margin of safety in both dollars and as a percentage of sales.

Aziz 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!

Dampf 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.

The contribution margin ratio of Thronson Corporation's only product is 69%.The company's monthly fixed expense is $455,400 and the company's monthly target profit is $41,400. Required: Determine the dollar sales to attain the company's target profit.Show your work!