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34. For a profitable company, the amount by which sales can decline before losses occur is known as the a. Variable sales ratio. b. Margin of safety. с. Sales volume variance d. Marginal income rate. (грсра) 35. 'Singsing, Inc. manufactures and sells key rings embossed with college names and slogans. Last year the key rings sold for P75 each, and the variable costs to manufacture them were P22.50 per unit. The company needed to sell 20,000 key rings to break-even. The net income last year was P50,400. The company expects the following for the coming year: The selling price of the key rings will be P90 Variable manufacturing costs per unit will increase by one-third. Fixed cost will increase by 10%. The income tax rate will remain unchanged. For the company to break-even the coming year, the company should sell a. 21,600 b. 2,600 21,250 d. 19,250 C. (грсра)

34. For a profitable company, the amount by which sales can decline before losses occur is known as the a. Variable sales ratio. b. Margin of safety. с. Sales volume variance d. Marginal income rate. (грсра) 35. 'Singsing, Inc. manufactures and sells key rings embossed with college names and slogans. Last year the key rings sold for P75 each, and the variable costs to manufacture them were P22.50 per unit. The company needed to sell 20,000 key rings to break-even. The net income last year was P50,400. The company expects the following for the coming year: The selling price of the key rings will be P90 Variable manufacturing costs per unit will increase by one-third. Fixed cost will increase by 10%. The income tax rate will remain unchanged. For the company to break-even the coming year, the company should sell a. 21,600 b. 2,600 21,250 d. 19,250 C. (грсра)

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 47E: Klamath Company produces a single product. The projected income statement for the coming year is as...
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31. A retail company determines its selling price by marking up variable costs by 60%. In addition, the company uses frequent selling price markdown to stimulate sales. if the markdowns average 10% , what is the company contribution margin ratio? a. 27.5% b. 30.6% с. 37.5% d. 41.7% (cia) The next two questions are based on the following: Tropical Stuff Toys manufactures and sells dolls. The following information relates to the operating results for the last quarter: PROFIT PLANNING AND COȘT-VOLUME-PROFIT ANALYSIS CHAPTER 5 218 Stuff toys sold Breakeven point in number of toys Breakeven point in peso sales Total fixed costs 19,375 15,500 P 65,875 P 47,275 2d What was Tropical's variable cost per doll? P 4.25 P 3.05 С. d. P 1.20 P 0.96 a. b. (грсра) 9 What was the margin of safety percentage for the last quarter of Tropical? (rounded to the nearest percent) 20% 25% a. C. 28% b. d. 72% (грсра) 34. For a profitable company, the amount by which sales can decline before losses occur is known as the Variable sales ratio. Sales volume variance d. а. С. b. Margin of safety. Marginal income rate. (грсра) 35. 'Singsing, Inc. manufactures and sells key rings embossed with college names and slogans. Last year the key rings sold for P75 each, and the variable costs to manufacture them were P22.50 per unit. The company needed to sell 20,000 key rings to break-even. The net income last year was P50,400. The company expects the following for the coming year: The selling price of the key rings will be P90 Variable manufacturing costs per unit will increase by one-third. Fixed cost will increase by 10%. The income tax rate will remain unchanged. For the company to break-even the coming year, the company should sell a. 21,600 b. 2,600 С. 21,250 d. 19,250 (грсра)
Transcribed Image Text:31. A retail company determines its selling price by marking up variable costs by 60%. In addition, the company uses frequent selling price markdown to stimulate sales. if the markdowns average 10% , what is the company contribution margin ratio? a. 27.5% b. 30.6% с. 37.5% d. 41.7% (cia) The next two questions are based on the following: Tropical Stuff Toys manufactures and sells dolls. The following information relates to the operating results for the last quarter: PROFIT PLANNING AND COȘT-VOLUME-PROFIT ANALYSIS CHAPTER 5 218 Stuff toys sold Breakeven point in number of toys Breakeven point in peso sales Total fixed costs 19,375 15,500 P 65,875 P 47,275 2d What was Tropical's variable cost per doll? P 4.25 P 3.05 С. d. P 1.20 P 0.96 a. b. (грсра) 9 What was the margin of safety percentage for the last quarter of Tropical? (rounded to the nearest percent) 20% 25% a. C. 28% b. d. 72% (грсра) 34. For a profitable company, the amount by which sales can decline before losses occur is known as the Variable sales ratio. Sales volume variance d. а. С. b. Margin of safety. Marginal income rate. (грсра) 35. 'Singsing, Inc. manufactures and sells key rings embossed with college names and slogans. Last year the key rings sold for P75 each, and the variable costs to manufacture them were P22.50 per unit. The company needed to sell 20,000 key rings to break-even. The net income last year was P50,400. The company expects the following for the coming year: The selling price of the key rings will be P90 Variable manufacturing costs per unit will increase by one-third. Fixed cost will increase by 10%. The income tax rate will remain unchanged. For the company to break-even the coming year, the company should sell a. 21,600 b. 2,600 С. 21,250 d. 19,250 (грсра)
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