Chapter 6 Homework 1

Chapter 6 Homework 1 - 208,000 Net Operating Income 52,000...

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19) 1. CM ratio= 0.30 Break-even units= $20Q = $14Q + 90,000 >> $6Q = $90,000 >> 15,000 units Break-even $= 15,000 units * $20 = $300,000.00 2. 70,000.00 4,9000.00 21,000.00 8,000.00 13,000.00 increase 3. Sales (27,000 units at $18 per unit) $468,000 Variable Expenses 378,000 Contribution Margin 90,000 Fixed Expenses 125,000 Net Operating Loss 35,000 4. $20Q = $14.65Q + $90,000 + $4,500 >> $5.35Q = $94,500 >> 17,664 5. CM Ratio = 0.65 $20Q = $7Q + 208,000 >> 13Q = 208,000 >> 16,000 units $320,000 Automated Sales(20,000 units at $20 per unit) $400,000 Variable Expenses 140,000 Contribution Margin 260,000 Fixed Expenses
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Unformatted text preview: 208,000 Net Operating Income 52,000 Not Automated Sales(20,000 units at $20 per unit) $400,000 Variable Expenses 280,000 Contribution Margin 120,000 Fixed Expenses 125,000 Net Operating Loss 5,000 Yes because they will not lose money 22) 1. Sales (25,000 units at SFr90 per unit) SFr2,250,000 Variable Expenses 1,500,000 Contribution Margin 750,000 Fixed Expenses 840,000 Net Operating Loss 90,000 2. 90Q = 60Q + 840,000 >> 30Q = 840,000 >> 28,000 units SFr 2,520,000 3. Price= SFr 80 Quantity= 50,000 Profit= SFr 160,000 4. 80Q = 60Q + 840,000 >> 20Q = 840,000 >> 42,000 units...
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This note was uploaded on 11/16/2009 for the course ACCT 152 taught by Professor Bayak during the Spring '07 term at Lehigh University .

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