Wu Company incurred $97,200 of fixed cost and $111,600 of variable cost when 3,100 units of product were made and sold. If the company's volume doubles, the total cost per unit will: Multiple Choice decrease. ○ stay the same. О double as well. Increase but will not double.

Wu Company incurred $97,200 of fixed cost and $111,600 of variable cost when 3,100 units of product were made and sold. If the company's volume doubles, the total cost per unit will: Multiple Choice decrease. ○ stay the same. О double as well. Increase but will not double.

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

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

See similar textbooks

Similar questions

Radison Enterprises sells a product for $92 per unit. The Costs that vary in total dollar amount as the level of activity changes.variable cost is $59 per unit, while Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed costs are $223,245. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $100 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $100 per unit units
2. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the company’s break-even point in units? . Use commas as needed (i.e. 1,234). What is the company’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of September when they will sell 900 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Maple Enterprises Contribution Margin Income Statement For the Month of September How many units will Maple need to sell in…
1. Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The company’s monthly fixed expenses are $180,000. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the company’s break-even point in units? Use commas as needed (i.e. 1,234). What is the company’s break-even point in dollars? Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of October when they will sell 10,000 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Cadre, Inc. Contribution Margin Income Statement For the Month of October How many units will Cadre need to sell in order to…
Finch Corporation produces products that it sells for $20 each. Variable costs per unit are $5, and annual fixed costs are $318,000. Finch desires to earn a profit of $51,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a. Break-even point in units a. Break-even point in dollars b. Sales volume in units b. Sales in dollars Prev 1 of 16 Next >
what is the Revenue, cost and profit functions for the problem below? Orange Company buys Product A for P15 per units and sells them for P25 per unit. There areno other variable costs. Fixed cost is P6,000. Use the breakeven formula to determine thefollowing:a. Revenue, cost and profit functions.
The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit? Select one: A. $8.71 B. $7.41 C. $9.23 D. $1.29 E. The answer cannot be determined by the information given.
Spice Inc.'s unit selling price is $49, unit variable costs are $39, fixed costs are $120,000, and current sales are 9,100 units. How much will income from operations change if sales increase by 5,400 units? DO NOT GIVE SOLUTION IN IMAGE FORMAT
XYZ Inc. sells a product for OMR 2.5 per unit. The variable cost is OMR 1.7 per unit, and fixed costs are OMR 1500. Using the Equation method Determine (a) the break-even point in sales if total fixed costs increased to OMR 2500 and, (b) the required sales in units if the company desires a target profit of OMR 3,200 assuming fixed cost remained the same at OMR 1,500.
Shawn, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units) Less variable expenses Contribution margin Less fixed expenses $120,000 (68,000) 52,000 (40,000) $ 12.000 Net income Required: Contribution margin per unit is b. а. per unit If sales are doubled to $240,000, total variable costs will equal If sales are doubled to $240,000, total fixed costs will equal d. С. $ 2$ If 10 more units are sold, profits will increase by Compute how many units must be sold to break even. # f. е. Compute how many units must be sold to achieve profits of $20,000. %24 %23
1. NewB Company sells bags with a selling price of P10,000 per bag and a variable cost of P4,000 per unit. NewB’s monthly fixed expense is P3,000,000. Let Q be the number of units manufactured Required: a. Construct the total cost function b. Construct the profit function c. Compute the contribution margin ratio. d. Compute total revenues needed to break even. e. Determine the breakeven point in units sold and sales in pesos. f. Compute required sales needed to achieve a target net income of₱1,500,000 in units sold and sales in pesos g. Determine margin of safety if current sales is P8,750,000
Based on the below examples (1&2), how can I figure out which contribution margin is needed to calculate the required Break-even? Between (Contribution Margin Per Unit) or (Contribution Margin Ratio). Example (1) (Why we didn't take CM/unit, but instead, CMR is calculated?) Northern Pacific Fixtures Corporation sells a single product for $28 per unit. If variable expenses are 65% of sales and fixed expenses total $9,800, the break-even point is? Example (2) (this one I know how to calculate). Mishoe Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (1,000 units)...................... $50,000 Variable expenses...................... 32,500 Contribution margin..................... 17,500 Fixed expenses.......................... 12,250 Net operating income.................. $5,250 The break-even point in unit sales is closest…
Management believes it can sell a new product for $6.50. The fixed costs of production are estimated to be $5,500, and the variable costs are $2.50 a unit. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any. Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Losses) 0 $ $ $ $ $ 500 $ $ $ $ $ 1,000 $ $ $ $ $ 1,500 $ $ $ $ $ 2,000 $ $ $ $ $ 2,500 $ $ $ $ $ 3,000 $ $ $ $ $ Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break-even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs,…