Which ratio indicates the percentage of each sales dollar that is available to

Which ratio indicates the percentage of each sales

This preview shows page 13 - 16 out of 77 pages.

Which ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $50,000?
Image of page 13
32%If sales are $820,000, variable costs are 68% of sales, and operating income is $260,000, what is the contribution margin ratio? A firm operated at 90% of capacity for the past year during which fixed costs were $320,000, variable costs were 60% of sales, and sales were $1,200,000. Operating profit was44% If sales are $200,000, variable costs are 56% of sales, and operating income is $30,000, what is the contribution margin ratio? Wiles Inc.'s unit selling price is $40, the unit variable costs are $30, fixed costs are $135,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units? If fixed costs are $850,000 and variable costs are 70% of sales, what is the break-even point (in dollars)? If fixed costs are $250,000, the unit selling price is $105, and the unit variable costs are $65, what is the break-even sales (in units)? If fixed costs are $750,000 and variable costs are 55% of sales, what is the break-even point (in dollars)? Foggy Co. has the following operating data for its manufacturing operations:Unit selling price$ 250Unit variable cost$ 100Total fixed costs$840,000The 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 the factory will increase fixed costs by 4%. If sales prices are held constant, the break-even point for Flynn Co. will If fixed costs are $350,000, the unit selling price is $75, and the unit variable costs are $30, what is the break-even sales (in units)? If fixed costs are $810,000, the unit selling price is $60, and the unit variable costs are $48, what is the break-even sales (in units) if the variable costs are increased by $2? If fixed costs are $810,000, the unit selling price is $60, and the unit variable costs are $48, what is the break-even sales (in units) if fixed costs are reduced by $50,000?
Image of page 14
18,000 units and 15,000 unitsIf fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (in units) if the unit selling price increases by $5?
Image of page 15
Image of page 16

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