Variable costs as a percentage of sales for Lemon Inc are 80 current sales are

Variable costs as a percentage of sales for lemon inc

This preview shows page 7 - 11 out of 18 pages.

19-104Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? $30,000 decrease$30,000 increase$8,000 decrease$8,000 increase 19-106Bryce Co. sales are $914,000, variable costs are $498,130, and operating income is $196,000. What is the contribution margin ratio? 19-131Flying Cloud Co. has the following operating data for its manufacturing operations:Unit selling price$250Unit variable cost100
Image of page 7
The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for thefactory will increase fixed costs by 4%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will beincreased by 800 unitsincreased by 640 unitsdecreased by 640 unitsincreased by 400 units19-132If fixed costs are $850,000 and variable costs are 60% of sales, what is the break-even point (dollars)? 19-133O'Boyle Co.'s fixed costs are $256,000, the unit selling price is $36, and the unit variable costs are $20, what is the break-even sales (units)? 16,000 units12,800 units4,571 units7,111 units
Image of page 8
20-66What term is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost, direct labor cost, and all factory overhead cost? What term is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost, direct labor cost, and variable factory overhead cost? Under absorption costing, which of the following costs would notbe included in finished goods inventory?
Image of page 9
Under variable costing, which of the following costs would notbe included in finished goods inventory? variable factory overhead costdirect labor costdirect materials costfixed factory overhead cost20-76 Which of the following would be included in the cost of a product manufactured according to variable costing?
Image of page 10
Image of page 11

You've reached the end of your free preview.

Want to read all 18 pages?

  • Spring '17
  • Robert K. Smolin

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture