Hinge Manufacturings cost of goods sold is 420000 variable and 240000 fixed The

# Hinge manufacturings cost of goods sold is 420000

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41.Hinge Manufacturing’s cost of goods sold is \$420,000 variable and \$240,000 fixed. Thecompany’s selling and administrative expenses are \$300,000 variable and \$360,000 fixed.If the company’s sales is \$1,480,000, what is its net income? a.\$160,000b.\$760,000c.\$820,000d.\$880,000Ans: a, LO: 1, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC:Problem Solving/Decision Making, IMA: ReportingSolution: \$1,480,000 \$420,000 \$240,000 \$300,000 \$360,000 \$160,000 42.Woolford’s CVP income statement included sales of 4,000 units, a selling price of \$50,variable expenses of \$30 per unit, and net income of \$25,000. Fixed expenses are 43.The contribution margin ratio is 44.For Pierce Company, sales is \$500,000, variable expenses are \$330,000, and fixedexpenses are \$140,000. Pierce’s contribution margin ratio is 34% 45.For Sanborn Co., sales is \$1,000,000, fixed expenses are \$300,000, and the contributionmargin per unit is \$48. What is the break-even point? a.\$2,083,334 sales dollarsb.\$625,000 sales dollarsc.20,834 unitsd.6,250 unitsAns: d, LO: 2, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC:Problem Solving/Decision Making, IMA: Business EconomicsSolution: \$300,000 / \$48 6,250 FOR INSTRUCTOR USE ONLY 19 - 9
Test Bank for Accounting, Tools for Business Decision Making Fifth Edition 46.For Franklin, Inc., sales is \$1,500,000, fixed expenses are \$450,000, and the contributionmargin ratio is 36%. What is net income?

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