Cesar Company has three product lines: A, B and C. The information given below is available. Assume Cesar Company drops Product C. Cesar Company then doubles the production and sales of Product B without ?increasing fixed costs. What will happen to operating income Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Product A S100,000 76,000 24,000 9,000 6.000 $9.000 Product B $90,000 48,000 42,000 18,000 9.000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 S(1,700) Operating income(loss) increase by $18,000 O increase by $15,000 () increase by $36,000 O increase by $24,000 increase by $42,000 ()

Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $600,000…

A: The correct option is:- It will Increase .d

Q: Coronado Machines has four product lines, one of which reflects the following results: Sales…

A: Avoidable fixed costs = Total Fixed costs x 40% = 111000 x 40% = $44,400

Q: Differential Costs and Sunk Costs Required: 1. What is the incremental manufacturing cost incurred…

A: Hey, since there are multiple sub-parts posted, we will answer the three sub-parts. If you want any…

Q: SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000,…

A: Contribution margin per unit = Selling price per unit - Variable costs per unit Break even point in…

Q: XYZ Co. has the following sales mix for its three products: A, 35%; B, 45%; and C, 20%. Fixed costs…

A: Total Break even point = fixed costs / Contribution margin per unit  = $400000/ $100 = 4000 units

Q: The following information is available for Titan Based on this information, the management is…

A: Given, Fixed overhead can be avoided = 80% Fixed selling and administrative expenses can also be…

Q: What would happen to the company's profit if the changes were implementedand production decreased to…

A: The correct answer is  b. It will decrease

Q: Sheridan Company has fixed costs of $2300000 and variable costs are 20% of sales. What are the…

A: Total Sales: The total sales are the fixed cost, variable cost, and profit income. here variable…

Q: Mazoon Company has fixed costs of $12,000 and a breakeven point of 600 units . If the company plans…

A: break even point = fixed cost / contribution per unit

Q: the product which represent £143,400. Total fixed costs equal £66,920 and total contribution equals…

A: The question is related to Marginal Costing and Cost Volume Profit Analysis. The income statement as…

Q: A company produces a product with variable costs of $2.50 per unit. The product sells for $5.00 per…

A: Answer -    Sales Level to achieve the desired Target income =  (Fixed Cost + Targeted Income) /…

Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000…

A: Net income can be defined as the difference between total revenues and total expenses. Expenses can…

Q: Cesar Company has three product lines: A, B and C. The information given below is available. Assume…

A: Operating income means the revenue that is made by the business after deducting the expenses related…

Q: A company has total fixed costs of $240,000 and a contribution margin ratio of 20%. The total sales…

A: Unit contribution margin = Sales price per unit - variable cost per unit contribution margin ratio =…

Q: Kenmore Company manufactures two products. Both products have the same sales​ price, and the volume…

A: (10). Expected decrease in revenue ($75,000) Expected decrease in total variable costs 64,250…

Q: aughn Machines has four product lines, one of which reflects the following results: Sales $220000…

A: The net income by variable costing method is calculated by deducting the variable cost and fixed…

Q: Company XYZ has total fixed costs of $10,000. Assume a selling price per unit of $48 and total…

A: Option e is correct.  Break even point = fixed cost/(sales price - variable cost) = 10000/(48 - 24)…

Q: Central Industries has three product lines: A, B, and C. The information given below is available.…

A: Operating income is the amount of revenue realized from the operations of the business, after…

Q: Pepper Industries has three product lines, A, B, and C. The following information is available:…

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Q: How I can resolve this problem.  The management of a firm wants to introduce a new product. the…

A: a. what is the break-even level of outpur for each scale of operation?In the first scale of…

Q: Perry Company’s break-even point is 12,000 units. Its product sells for $25 and has a $10 variable…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: A company has assessed the profitability of its three products as shown here: Product A Product B…

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Q: XYZ Company is facing changes in its cost structure so that fixed costs will increase from $400,000…

A: Profit of the company can be calculated by deducting total costs that are variable costs and fixed…

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A: Solution: Relevant Variable cost = Direct materials + direct labor + indirect manufacturing +…

Q: Assume a company sells a given product for $12 per unit. How many units must be sold to break even…

A: Total variable cost per unit = $3.5 + $0.5 = $4 Contribution per unit= Selling price per unit -…

Q: for the last year A multi product Company has the following costs and output data Product X Y Sales…

A:

Q: Maple Company has sales of P550,000 and has variable costs of P330,000.Fixed costs are P180,000. a.…

A: Contribution margin = Sales  - Total variable cost = P550,000 - P330,000 = P220,000 Contribution…

Q: Kando Company incurs a $10.00 per unit cost for Product A, which it currently manufactures and sells…

A: Cost per unit not eliminated if bought = Cost per unit to make - cost eliminated = $10 - 7 = $3 per…

Q: If fixed costs are $859,000 and variable costs are 60% of sales, the break-even point in sales…

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Q: Units produced and sold 150   300   Selling price per unit $400   $200   Variable expenses per…

A: Fixed costs are those costs which generally do not change with change in activity level. Variable…

Q: Brevard Industries produces two products. Information about the products is as follows: Units…

A: The decision for dropping a product line decreases the variable cost and traceable fixed cost but…

Q: Kando Company incurs a $9.00 per unit cost for Product A, which it currently manufactures and sells…

A: Introduction: Incremental analysis, also known as the relevant cost approach, marginal analysis, or…

Q: Vaughn Manufacturing has the following costs when producing 100000 units: Variable costs $600000…

A: Manufacturing costs are the cost paid during the manufacturing of a good.Direct material, direct…

Q: XYZ company is studying the profitability of a change in operation and has gathered the following…

A: Whenever we are presented with alternative options, suitable cost benefit analysis should be made to…

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A: Operating income is earned by the entity from its principal business. The entity has two proposals…

Q: $4 per unit. The company has the option to purchase the component for $20 per unit. Prepare a…

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Q: Using your answer to Requirement 1, assume that Reshier Company is considering dropping any model…

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Q: Midnight Co. has a contribution margin of $240,000, which is 40% of total sales. Fixed costs are…

A: Total Sales=Contribution marginContribution margin ratioVariable Cost=Sales-Contribution Margin

Q: A company has two different products that sell to separate markets. Financial data are as follows:…

A: Fixed cost remains constant even though  the product B is dropped.

Q: Fowler Company is a price - taker and uses target pricing. Refer to the following information:…

A: Desired Profit = $ 1,39,00,000 × 16% = $ 22,24,000

Q: Orange Company buys Product A for P15 per units and sells them for P25 per unit. There are no other…

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Q: XYZ company is studying the profitability of a change in operation and has gathered the following…

A: This numerical has covered the concept of Cost Volume Profit Analysis.

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Q: Consider the following cost and pricing data of ABC Corp. on its Product X:      Price:…

A: Disclaimer: Since you have posted a question with multiple sub-parts, we will solve first three…

Q: XYZ company is studying the profitability of a change in operation and has gathered the following…

A: The company should accept the anticipated operations if the new operations give additional benefits…

Q: Cesar Company has three product lines: A, B and C. The information given below is available. Assume…

A: The increase in net income will be calculated by making adjustments of loss of contribution margin…

Q: If XYZ Company decides to concentrate its sales efforts on Product B with its higher contribution…

A: The break-even sales are the sales where business earns no profit no loss during the period.

Q: SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000,…

A: Break even point is the sales level at which the firm is able to recover the total cost of the firm.…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.