acct640 chapter 3 homework 495994
Aug 29, 2021 | Uncategorized
| Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total variable expenses were $240,000, and fixed expenses were $45,000. |
| Required: |
| 1. |
What is the company s contribution margin (CM) ratio?
|
| 2. |
Estimate the change in the company s net operating income if it were to increase its total sales by $1,500.
|
Maxson Products distributes a single product, a woven basket whose selling price is $8 and whose variable cost is $6 per unit. The company s monthly fixed expense is $5,500.
| 1. |
Compute for the company s break-even point in unit sales using the equation method.
| 2. |
Compute for the company s break-even point in sales dollars using the equation method and the CM ratio.
|
|
|
| 3. |
Compute for the company s break-even point in unit sales using the formula method.
| 4. |
Compute for the company s break-even point in sales dollars using formula method and the CM ratio
|
Mohan Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month s budget appear below:
|
|
|
|
| Selling price |
$25 |
per unit |
| Variable expenses |
$15 |
per unit |
| Fixed expenses |
$8,500 |
per month |
| Unit sales |
1,000 |
units per month |
|
| Required: |
| 1. |
Compute the company s margin of safety.
| 2. |
Compute the company s margin of safety as a percentage of its sales.
|
|
|
|
|
