Question :
41. A company’s manager estimates that in the upcoming year, total : 1291715
41. A company’s manager estimates that in the upcoming year, total variable costs will increase by $7,500 and total fixed costs will increase by $3,500. Assume that the unit sales price did not change. What will be the anticipated effect on net operating income? A. Net operating income will increase by $11000.B. Net operating income will decrease by $11,000.C. Net operating income will increase by $4,000.D. Net operating income will decrease by $4,000.
42. A company’s manager estimates that in the upcoming year, total variable costs will increase by $20,000 and total fixed costs will decrease by $14,000. Assume that the unit sales price did not change. What will be the anticipated effect on net operating income? A. Net operating income will increase by $34,000.B. Net operating income will decrease by $34,000.C. Net operating income will increase by $6,000.D. Net operating income will decrease by $6,000.
43. A company’s manager estimates that in the upcoming year, increasing advertising costs by $25,000 will cause sales revenue to increase by $60,000. If the company’s contribution margin ratio is 35%, what will be overall effect on net operating income? A. Net operating income will increase by $12,250.B. Net operating income will increase by $29,750.C. Net operating income will increase by $35,000.D. Net operating income will decrease by $4,000.
44. A company’s manager estimates that in the upcoming year, decreasing advertising costs by $50,000 will cause sales revenue to decrease by $120,000. If the company’s contribution margin ratio is 35%, what will be overall effect on net operating income? A. Net operating income will increase by $8,000.B. Net operating income will decrease by $8,000.C. Net operating income will increase by $24,500.D. Net operating income will decrease by $24,500.
45. LMN Manufacturing produces two products – Product S and Product W. The following information is available related to each product:
Product S
Product W
Sales price per unit
$25
$40
Variable costs per unit
17
22
Product S accounts for 40% of total product sales and Product W accounts for the rest. LMN’s total fixed costs are $24,990. How many total number of products need to be sold in order for the company to break even? A. 1,922 unitsB. 2,403 unitsC. 962 unitsD. 1,785 units
46. RET ManufacturingRET Manufacturing produces two types of children’s products – Rubles and Twizzles. The following information is available related to each product:
Rubles
Twizzles
Sales price per unit
$15
$24
Variable costs per unit
5
12
Rubles account for 60% of total product sales and Twizzles accounts for the rest. RET’s total fixed costs are $30,024. Refer to the RET Manufacturing information above. How many total number of products need to be sold in order for the company to break even? A. 2,780 unitsB. 2,730 unitsC. 5,560 unitsD. 2,176 units
47. RET ManufacturingRET Manufacturing produces two types of children’s products – Rubles and Twizzles. The following information is available related to each product:
Rubles
Twizzles
Sales price per unit
$15
$24
Variable costs per unit
5
12
Rubles account for 60% of total product sales and Twizzles accounts for the rest. RET’s total fixed costs are $30,024. Refer to the RET Manufacturing information above. How many Rubles need to be sold in order for the company to break even? A. 1,638 unitsB. 1,668 unitsC. 819 unitsD. 2,780 units
48. Crabtree Inc. produces two types of products – Gizmos and Gadgets. The following information is available related to each product:
Gizmos
Gadgets
Sales price per unit
$32
$50
Variable costs per unit
17
22
Percentage of total sales
66.67%
33.33%
If total fixed costs are $29,000, how many total units need to be sold in order for the company to break even? (round computations to nearest number) A. 1,933 unitsB. 1,036 unitsC. 1,500 unitsD. 1,349 units
49. Crabtree Inc. produces two types of products – Gizmos and Gadgets. The following information is available related to each product:
Gizmos
Gadgets
Sales price per unit
$80
$50
Variable costs per unit
36
22
Three-fourths of the products sold are Gizmos and one-fourth are Gadgets. If total fixed costs are $50,000, how many total units need to be sold in order for the company to break even? A. 1,250 unitsB. 1,389 unitsC. 2,500 unitsD. 690 units
50. Village ManufacturingVillage Manufacturing produces two types of products – Card Games and Puzzles. The following information is available related to each product:
Card Games
Puzzles
Sales price per unit
$6.00
$15.00
Variable costs per unit
2.00
3.50
60% of the products sold are Card Games and 40% are Puzzles. Refer to the Village Manufacturing information above. If total fixed costs are $24,500, how many Puzzles need to be sold in order for the company to break even? A. 852 unitsB. 1,265 unitsC. 1,400 unitsD. 3,500 units
