117769315 A company has fixed costs of 90000 Its contribution margin ratio is

117769315 a company has fixed costs of 90000 its

This preview shows page 8 - 10 out of 77 pages.

$1,177,693.15 A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit. What is the company's break-even point in dollar sales? $300,000 Lee company manufactures and sells widgets for $2 per unit. Its variable costs per unit is $1.70. Lee's total fixed costs are $10,500. How many widgets must Lee company sell to break even 35,000 The Haskins Company manufactures and sells radios. Each radio sells for $23.75 and the variable costs per unit is $16.25. Haskin's total fixed costs are $25,000, and budgeted sales are 8,000 units. What is the contribution margin per unit? $7.50 Ginger company's product has a contribution margin per unit of $11.25 and a contribution margin ratio of 22.5%. What is the selling price of the product? $50 Which of the following describes the behavior of the fixed cost per unit? Remains constant with changes in production Which of the following costs is a mixed cost? Electricity costs of $3 per kilowatt-hour If sales are $425,000, variable costs are 62% of sales, and operating income is $50,000, what is the contribution margin ratio? 38% Variable 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 $8000 increase If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, what is the amount of sales required to realize an operating income of $200,000 10,769 units If fixed costs are $400,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit? 20,000 units The difference between current sales revenue and the sales at the break-even point is called the: margin of safety A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit and fixed
Image of page 8
costs increase to $900,000, and the selling price does not change, break-even point in units would Not Change Mueller Corp. manufactures compact discs that sell for $5.00. Fixed costs are $28,000 and variable costs are $3.60 per unit. Mueller can buy a newer production machine that will increase fixed costs by $8,000 per year, but will decrease variable costs by $0.40 per unit. What effect would the purchase of the new machine have on Mueller's break- even point in units? No change Schmidt Inc., manufactures inexpensive cameras that sell for $50.00. Fixed costs are $720,000 and variable costs are $30.00 per unit. Schmidt can buy a newer production machine that will increase fixed costs by $14,400 per year, but will increase variable costs by 10% per unit. What are the original and the new break even points in this situation Original $36,000; New $43,200 The salary paid to the maintenance supervisor in a manufacturing plant is an example of: Product Cost and Manufacturing Overhead All of the following would be classified as a product cost except: -Property taxes on production equipment -Insurance on Factory machinery -Salaries of the marketing staff -Wages of Machine Operators Salaries of the Marketing Staff Which of the following entries would correctly record the application of overhead cost?
Image of page 9
Image of page 10

You've reached the end of your free preview.

Want to read all 77 pages?

  • Fall '13

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture