Suppl_Problems_CVP

Suppl_Problems_CVP - 1 Applied Managerial Accounting...

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Applied Managerial Accounting ACCT2460 - 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 ………………………………………………………………$13,500 Required : Compute the number of product units that must be sold to achieve net income 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 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?. ....................... $__________ 1
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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……………………………………………………………….$_________ 2
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Problem 4: Given for Kitchen Wizard, Inc. (in thousands): Sales…………………………………………………………………… $450.00
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Suppl_Problems_CVP - 1 Applied Managerial Accounting...

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