James Shaw owns several shaved ice stands that operate in the summer along the Outer Banks of North Carolina. His contribution margin ratio is 60%. If James increases his sales revenue by $25,000 without any increase in fixed costs, by how much will his operating income increase?     $25,000   $15,000   $10,000   $5,000

Q: use the contribution margin approach.

A: Meaning of Contribution Margin Approach Contribution Margin approach is used to calculate the net…

Q: Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price…

A: Break-even point is the level of sales at which the firm earns no profit and incurs no losses. Total…

Q: You have a  food cart business that sells hotdogs for P25 each. The variable costs per hotdog are…

A: Formula =   Break even point =. Fixed cost / contribution…

Q: You own and manage a yard care business in which you charge $50 per visit to care for each yard…

A: Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…

Q: Sam’s Skate Shop specializes in SUPERIOR SKATES for ice hockey.  Their only product is hockey…

A: Break-even point:  A breakeven analysis is a calculation of the point at which revenue equals…

Q: Shonda & Shonda is a company that does land surveys and engineering consulting.  They have an…

A: This is the ratio of the operations which is derived after deducting variable expenses from sales.…

Q: John Brown is the managing partner of a business that has just finished building a​ 60-room motel.…

A: Hotel Industry: The hotel business is a segment of the service sector that is concerned with…

Q: Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He…

A: Margin of Safety In a simple term margin of safety which describes as the difference between the…

Q: Answer each question independently based on the original data: 5. The sales manager is convinced…

A: Basically, we need to analyse changes in operating income due to changes in selling prices,…

Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit.…

A: Variable expenses are those expenses which changes with the change in the volume of output. If…

Q: break-even point?

A: Break even point in units = Fixed cost / Contribution margin per unit

Q: It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8.00 a piece.…

A: Formula: Contribution margin = Sales revenue - variable cost.

Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…

A: Contribution margin income statement is the statement of income in which it is clearly shown about…

Q: You are the plant accountant for a company that makes a popular brand of basketball shoes.…

A: Break even point is the point at which the company makes no profit and incurs no loss. Data given:…

Q: Maple Inc. manufactures a product that costs $25 per unit plus $43,000 in fixed costs each month.…

A: Relevant costs are the costs which are relevant to the decision making process. In this question,…

Q: Francois French manufactures cheese, which he normally sells at €20/kg, on which sales commission of…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Pens and Prints manufactures and sells T-shirts imprinted with college names and slogans. Last year,…

A: Solution: Last year contribution margin per unit = $7.50 - $2.25 = $5.25 per unit Before tax net…

Q: Lila battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who…

A: Economic Order Quantity(EOQ) shows quantity of goods at which ordering cost and holding/carrying…

Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500…

A: Accounts receivable is the amount pending to be receivable from the customers of the company for the…

Q: Jason Bartlett is the managing partner of a business that has just finished building a​ 60-room…

A: There are two types of costs that are being incurred in the business. One is variable costs which…

Q: ou are the plant accountant for a company that makes a popular brand of basketball shoes. Currently,…

A: Break even sales volume refers the sales volume that needs to be achieved to cover the fixed cost…

Q: Mark Harris operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He…

A: Income before tax= Net income / (1 - tax rate) = $44,100 / (1 - 0.30) = $63,000

Q: A truck manufacturer can produce one more truck if it hires another employee for $40,000. It can…

A: solution : correct answer is : option a. Hire employees until the cost of the next employee equals…

Q: Your Company produces 1,000 parts per year, which are used in the assembly of one of its products.…

A: The decision regarding whether to buy the product from the market or to make the product depends…

Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500…

A: In Contribution margin income statement, operating income is calculated by reducing fixed costs from…

Q: Who Done It Mystery Theater sells tickets for dinner and a show for​ $55 each. The cost of providing…

A: Contribution margin ratio is the contribution margin expressed in terms of sales / revenue.…

Q: You are the plant accountant for a company that makes a popular brand of basketball shoes.…

A: Note: There is no clarity in question w.r.t Price of shoe. it is shown as $100 a piece. If 2 piece…

Q: Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The…

A: Optimal Size = 2 x Annual Demand x Cost per setup ÷ Holding cost per unit(1−Demand/Production)…

Q: AdamGranger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He…

A: Break even point refers to that volume of operation where, there is no profit or loss to an…

Q: You are the plant accountant for a company that makes a popular brand of basketball shoes.…

A: Cost volume profit (CVP) analysis is an accounting practice which determines the relationship…

Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…

A: Margin of safety is the difference between total sales value and breakeven sales value. Here, we can…

Q: Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are…

A: Here the first step is determine the existing level of profits. Once this is done then we will have…

Q: 8. A juice bar is currently doing $292,000 a year in sales revenue. Juice cost is 40% and other…

A: 1. Cost of Juice = 40% of sales Revenue = 40% of $ 2,92,000 = $ 1,16,800 2. Other variable cost= 25%…

Q: 2. Vincent is leasing 100 units of market space in zamboanga city. He computed his fixed costscat…

A: 2) Fixed cost = P 320000 Leasing revenue = P 14000 Leasing cost = P 2950 Let n = Number of units for…

Q: You are the plant accountant for a company that makes a popular brand of basketball shoes.…

A: The question is related to the Marginal Costing. The details are given regarding the same. First we…

Q: Grover's Steel Parts produces parts for the automobile industry. The company has monthly fixed…

A: (Desired operating income + Fixed expenses ) / New Contribution margin ratio = Target Sales in…

Q: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…

A: Price of Chair = $195  Contribution Margin Ratio = 60% Fixed cost = $80,000 Target profit = $85,000…

Q: Chaps & Saddles, a retailer of tack and Western apparel, earns an average contribution margin of 30…

A:

Q: Arrow Products typically earns a contribution margin ratio of 25 percent and has current fixed costs…

A: Contribution margin is the excess of sales over variable cost. It is the part of sales revenue which…

Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500…

A: Calculation of Monthly Net Operating Income Contribution Margin Income Statement    Amount…

Q: 3/Summer Company sells a product with a contribution margin ratio of 60%. Fixed costs are $650 per…

A: Required dollars sales = Total contribution margin required / Contribution margin per unit

Q: Roseberg Theater sells tickets for dinner and a show for $60 each. The cost of providing dinner is…

A: Contribution margin = Sales price - variable costs = $60 - $31 = $29 per ticket

Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500…

A: Contribution margin: It is the difference between the revenue and the variable cost.

Q: Seabold Interiors sold 18,400 yards of wallpaper last year at a contributionmargin of $3.50 per yard…

A: Contribution margin: It is the difference between the sale value and the variable cost. When we…

Q: Phil makes and sells rugs at his roadside stand. His monthly fixed cost for owning the stand is…

A: Phil's fixed cost = $1500Phil's total cost when he sells 12 rugs = $1548Phil's total variable cost…