Diff 2 objective 2 aacsb analytical thinking 33

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Accounting Using Excel for Success
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Chapter 6 / Exercise 6-5
Accounting Using Excel for Success
Reeve/Warren
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Diff: 2Objective: 2AACSB: Analytical thinking
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Accounting Using Excel for Success
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Chapter 6 / Exercise 6-5
Accounting Using Excel for Success
Reeve/Warren
Expert Verified
3.3 Objective 3.31) Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dressis $1,200, variable costs are $700, and fixed costs are $100,000. How many dresses must the Bridal Shoppe sell to yield after-tax net income of $20,000, assuming the tax rate is 40%?
A
Diff: 3Objective: 3AACSB: Analytical thinking2) Anglico's most recent income statement is given below.Sales (8,000 units)$160,000Less variable expenses (68,000)Contribution margin 92,000Less fixed expenses (50,000)Net income $42,000Required:a. Contribution margin per unit is $ ________ per unitb. If sales are doubled total variable costs will equal $ ________c. If sales are doubled total fixed costs will equal $ ________d. If 20 more units are sold, profits will increase by $ ________e. Compute how many units must be sold to break even. # ________f. Compute how many units must be sold to achieve operating income of $60,000.# ________g. Compute the revenue needed to achieve an after taxincome of $30,000 given a tax rate of 30%. $ ________
Diff: 3Objective: 3AACSB: Application of knowledge3) Black Pearl, Inc., sells a single product. The company's most recent income statement is given below.Sales$50,000Less variable expenses(30,000)Contribution margin20,000Less fixed expenses(12,500)Net income$ 7,500Required:a.Contribution margin ratio is________%b.Breakeven point in total sales dollars is$ ________ c.To achieve $40,000 in operating income, sales must total$ ________ d.If sales increase by $50,000, operating income will increaseby$ ________ e.To achieve a $40,000 after tax income, given a tax rate of20%, sales must total$________Answer:
Diff: 3Objective: 3AACSB: Application of knowledge

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