Suppl_Problems_CVP_09

# Suppl_Problems_CVP_09 - 1 Introductory Cost Accounting -...

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Introductory Cost Accounting - Cost-Volume-Profit - Supplementary Questions Problem 1: Given for Magic Fixtures, Inc. Product selling price per unit…………………………………………………. .…\$65.00 Variable expenses per unit…………………………………………………….….\$45.00 Total fixed expenses…………………………………………………………. ....\$24,000 Target net income after taxes……………………………………………………\$13,500 Income Tax rate……………………………………………………………………. .40% Required : Compute the number of product units that must be sold to achieve net income after taxes. Problem 2: Given for Flexible Products Inc. Sales price per product unit……………………………………………………….\$70.00 Variable expenses per product unit……………………………………………….\$50.00 Total fixed expenses………………………………………………………………\$4,800 Find: 1. Contribution margin per product unit……………………………. ..\$___________ 2. Breakeven sales in units……………………………………………._______ units 3. Sales in units that would produce a net income of \$1,200…………._______ units 4. Sales in units that would produce a net income of 20% of sales……_______ units 5. Net income, if 600 product units were sold………………………. .\$___________ 6. The breakeven sales in units, if variable expenses were increased by \$5.00 per unit and if total fixed expenses were decreased by \$1, 200 ………. .________units 1

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7. If the company desires a net income of \$1,800 on a sales volume of 300 units, what must the unit selling price be, assuming no charges in the \$50 variable expenses per unit or the \$4,800 total fixed expenses?. ....................... \$__________ Problem 3: Given for Monument Sales Company: Sales…………………………………………………………………………\$60,000 Total fixed expenses…………………………………………………………\$12,000 Total variable expenses………………………………………………………\$42,000 Find: 1. Net income when sales are \$60,000 (as above)……………………….\$_________ 2. Contribution-margin ratio or percentage…………………………. ..... _________% 3. Breakeven sales……………………………………………………….\$_________ 4. Sales that would produce a net income of \$9,000, assuming no Charges in the contribution-margin ratio or in total fixed expenses……………………………………………………………….\$_________ 5. Sales that would produce a net income of 20% of sales, assuming no charges in the contribution-margin ratio or in the total fixed expenses……………………………………………………………….\$_________ 6. Breakeven sales if total fixed expenses are reduced by \$2,000 and
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## This note was uploaded on 03/04/2012 for the course ACCT 2460 taught by Professor Farrar during the Winter '12 term at Conestoga.

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Suppl_Problems_CVP_09 - 1 Introductory Cost Accounting -...

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