The following information pertains to MacKenzie Corp. Sales of 22,500 units for $900,000, Fixed Expenses are $350,000 and the Break-even Point is $700,000. If sales price were to decrease by 5% and variable expenses were to increase by $2.00 per unit, which of the following is true? ○ The new selling price is $36 per unit ○ The new break-even point is $831,250 ○ The new variable expenses are $18 per unit ○ The new break-even point is 21,750 units O none of the above
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- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as follows : Required 1) At the break - even point , Jefri Company sells 115,000 units and has a fixed cost of RM349,600 . The variable cost per unit is RM4.56 . Estimate the price that Jefri has to charge per unit .Spice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000, and current sales are 9,800 units. How much will operating income change if sales increase by 5,300 units? O a. $100,700 increase O b. $186,200 increase O c. $186,200 decrease O d. $286,900 increase
- In March, James Electronics had sales of $2,550,000 (25,500 units), total variable expenses of $1,275,000, and total fixed expenses of $825,000. Required: 1. What is the company's CM ratio? CM ratio % A 2. Using the CM ratio, calculate the break-even level of sales in dollars. Break-even level of sales in dollor 3. What is the break-even level of sales in units? Break-even level of sales in units unitsThe Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit. Consider each case separately: Q1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: Q2. A $0.04 per unit increase in variable costs Q3. A 10% increase in fixed costs and a 10% increase in units sold Q4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit, and a 40% increase in units sold Compute the new breakeven point in units for each of the following changes: Q5. A 10% increase in fixed costs Q6. A 10% increase in selling price and a $20,000 increase in fixed costsA company has provided the following data: Sales 2,000 units Sales price $50/unit Variable cost $30/unit Fixed cost $25,000 If the variable cost per unit is decreased by 10%, the total fixed cost is increased by 20%, and all other factors remain the same, what will be the effect on operating income? a) It will decrease by $5,000 b) It will decrease by $1,000 c) It will increase by $6,000 d) It will increase by $1,000
- Compony XYZ is currently making sales of $ 200,000. At this level, the variable experies were $ 100.000 company XYZ expects sales to increase to $ 250,000 in the coming period with no changer is expected to find expenses. How much is the expected change pront:Lindon Company is the exclusive distributor for an automotive product selling for $22.00 per unit with a CM ratio of 30%. The company's fixed expenses are $105,600 per year and it plans to sell 17,400 units this year. Required: 1. What are the variable expenses per unit? Note: Round your "per unit" answer to 2 decimal places. 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $39,600 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $2.20 per unit. What is the company's new break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $39,600? 1. Variable expense per unit 2. Break-even point in units 2. Break-even point in dollar sales 3. Unit sales needed to attain target profit 3. Dollar sales needed to attain target profit 4. New break-even point in unit sales 4. New break-even point…(20 pts) Given: Selling price $50/unit, total fixed expenses $95,000, variable expenses $40/unit. A) Find the BEP in Units and in Dollars. Assume the above variable expenses are reduced by 25% and the total fixed expenses are increased by 10%. B) Find the sales in units to achieve a profit of $30,000 assuming that the selling price stays the same. C) Find the net income if activity volume increases by 20%, assuming total sales are $32,000, variable expenses are $12,000, and fixed expenses are $20,000. (Unrelated to A&B)
- [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Req 2A Per Unit 125 80 $45 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used? Req 2B Complete this question by entering your answers in the tabs below. Percent of Sales Net operating income 100% 64 36% by Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. Req 2A Req 2B >Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has aCM ratio of 30%. The company’s fixed expenses are $180,000 per year. The company plans to sell 16,000units this year.Required:1. What are the variable expenses per unit?2. Using the equation method:a. What is the break-even point in units and sales dollars?b. What sales level in units and in sales dollars is required to earn an annual profit of $60,000?c. Assume that by using a more efficient shipper, the company is able to reduce its variable expensesby $4 per unit. What is the company’s new break-even point in units and sales dollars?3. Repeat (2) above using the formula method.The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $243,000, what are the total fixed expenses?