sales = 950,000, variable costs = 450,000, and fixed costs = 310,000. if an addition is offered to a company which is estimated by the sales manager to increase sales by a maximum of $750,000, and the company’s accountants have determined that the proposed addition will add $320,000 to fixed costs each year and variable costs are expected to be at the same percentage as they currently are before the proposed addition, why is the current fixed costs of 310,000 a sunk cost while the addition's fixed cost of 320,000 is an out-of-pocket cost?

Q: Last year a local restaurant realized sales of $290,000 with fixed costs of $130,000 and total…

A: Break even sales: Sales at which there will be no profit or loss. The restaurant can recover fixed…

Q: For the past year, LaPrade Company had fixed costs of $70,000, a unit variable costs of $32, and a…

A:

Q: Interchange Inc. had sales of $400,000, based on a unit selling price of $200. The variable cost per…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: The third In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32…

A: Solution :- Old contribution per unit = 32 -22 = $10 per unit Old total contribution = 1,200,000 x…

Q: For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21,…

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

Q: Taylor Company has current sales of 1,000 units, which generates sales revenue of $190,000, variable…

A: Selling price = $190,000 / 1,000 = $190 Unit Variable cost = $76,000 / 1,000 = $76

Q: The following information relates to next year’s projected operating results of the ARO Division of…

A: Solution : Given Contribution margin P1,500,000 Fixed expenses 1,700,000 Net…

Q: What would be the total contribution to profit to the company as a whole for 10,000 units…

A: Selling Price for 10,000 units (10,000 * P21) P2,10,000 Relevant Cost:   Variable cost of…

Q: For the coming year, Bepis Inc. anticipates fixed costs of $700,000, a unit variable cost of $85,…

A: Given: Selling unit $105 Fixed costs $700,000 Variable costs $85 Maximum sales $2,500,000

Q: A business is operating at 90% of capacity and is currently purchasing a part used in its…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: sales = 950,000, variable costs = 450,000, and fixed costs = 310,000. if an addition is offered to a…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: In 200A, the company’s sales was P500,000. Its fixed costs amounts to P100,000 per year. In 200B,…

A: The income statement is prepared to determine the net profit for a period. In multiple step income…

Q: Spring Manufacturing sold 610,000 units of its product for $98 per unit in 2019. Variable cost per…

A: Contribution margin = Sales - Variable costs Operating income = Contribution margin  - Fixed costs

Q: A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are…

A: Sales revenue refers to the actual amount of income which is earned by a company or a corporation…

Q: Baker Company has a product that sells for $20 per unit. The variable expenses are $12 per unit, and…

A: Lets understand the basic terms here. Contribution is a sales less variable cost. In other words it…

Q: Manor Homes plans to discontinue a segment which last year generated a contribution margin of…

A: The fixed cost which is not avoidable is the costs that are incurred even if the segment is…

Q: For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of…

A: a)  Prepare Break-even chart: 4800 units Operating Loss area 12000 units Break-even point…

Q: Company XYZ is currently operating with a 65% contribution margin. The company is planning an…

A: Increase in contribution margin = Increase Sales x contribution margin ratio = $10000 x 65% = $6500

Q: Jely Company manufactures a single product. In the prior year, the company had sales of P90,000,…

A: Variable cost changes with the changing level of activities i.e. higher the production more will be…

Q: Salter Inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $125,000,…

A: Calculate the contribution margin per unit as follows: Contribution margin = Selling price -…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Profit = Sales - Variable Cost - Fixed Cost

Q: In its first year of operations, a firm had P50,000 of fixed operating costs. it sold 10,000 units…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Net profit is calculated by deducting fixed costs from the contribution margin amount

Q: Annually (10000) units of a product are sold at a price of (12) $/unit, if the fixed costs is…

A: The question is based on the concept of Cost Accounting.

Q: The manager of Dukey's Shoe Station estimates operating costs for the year will include $465,000 in…

A: Breakeven sales is that level of sales revenue at which business is only recovering it's fixed costs…

Q: Key Corporation is considering the addition of a new product. The expected cost and revenue data for…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: For the past year, Pedi Company had fixed costs of $70,000, unit variable costs of $32, and a unit…

A: Fixed cost = $ 70,000 Selling price = $ 40 Variable cost = $ 32 Contribution per unit = Selling…

Q: Contribution Margin of Walls Corporation, Consumer division is Rs. 1900,000 and the fixed expenses…

A: Contribution means the difference between the selling price and variable cost. Fixed cost remain…

Q: Reliance fresh has planned operating expenses of ₹170,000, a profit goal of₹35,000, and it expects…

A: Working Note :-                           Calculation of Cost Of Goods Sold Particulars Budgeted…

Q: Star Boy Company sells a single product, Product X. Last year, sales revenue amounted to P700,000…

A: Here in this question, we are required to determine the income for product X after change in the…

Q: Frieden’s management is considering a major upgrade to the manufacturing equipment, which would…

A: The contribution income statement is the statement that shows the contribution margin and the…

Q: Booth Company had sales in 2020 of $1,875,000 on 75,000 units. Variable costs totaled $1,125,000 and…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Interchange Inc. had sales of $400,000, based on a unit selling price of $200. The variable cost per…

A: Break even sales refers to the sales or revenue amount in dollar form at which the company earns the…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Contribution margin= Contribution/ Sales Contribution= Sales-Variable cost

Q: For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost…

A: 1. Calculate the anticipated break-even sales in units.

Q: Interchange Inc. had sales of $400,000, based on a unit selling price of $200. The variable cost per…

A: PLEASE LIKE THE ANSWER  Construct a cost-volume-profit chart (on your own paper) indicating the…

Q: The total fixed costs per year for the company are $674,000.   Required: a. What is the…

A: For calculating the break even sale with different products , we need use the following formula :-…

Q: SOWSEY Company is considering the addition of a new product to its current product lines. The…

A: Solution: Lowest selling price per unit could be charged to product and still make additional P2 per…

Q: 2. Annually (10000) units of a product are sold at a price of (12$) per unit, the amount of fixed…

A: Lets understand the basics. Here in this question, we are required to calculate how much should be…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: given that, Increase in sales = $15000 Contribution margin ratio = 60% Fixed cost increase by $2500…

Q: What is the margin, turnover and ROI if the existing company performs the same next year AND it adds…

A: Ratio are the sub set, which is the group of metrics used for measuring the profitability as well as…

Q: Prepare a projected CVP income statement for 2020 assuming the changes have not been made

A: Solution:- Preparation of projected CVP income statement for 2020 assuming the changes have not been…

Q: n 2020, National Co. sold 1,000 units at P500 each, and earned net income of P40,000. Variable…

A: solution given details of 2020 Units sold 1000 Selling price per unit 500 Net income…

Q: Bogart Company is considering two alternatives. Alternative A will have revenues of $160,000 and…

A: Incremental revenue, cost, and net income are the difference between alternative 1 and alternative…

Q: The Blue Co. will produce 25,000 units of product next year. Variable costs ratio is 70%, while…

A: The expected sales needs to be calculated in order to recover the fixed cost and earn a profit of…

Q: The managet of Dukey' s Shoe Station Estimates operating costs for the year will include $450,000 in…

A: Break-even point in sales dollars = Fixed costs/Contribution margin ratio Sales dollars required to…

Q: D&R Corp. has annual revenues of $262,000, an average contribution margin ratio of 33%, and fixed…

A: Operating income is a measure that shows how much of a company's revenue is transformed into…

Q: Colin Company manufactures a single product. In the prior year, the company had sales of P90,000,…

A: Sales P90,000 Variable costs -P50,000 Contribution Margin  P40,000 Fixed costs -P30,000…