{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 6 Homework 1

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

This preview shows page 1. Sign up to view the full content.

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
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online