Question : 132.Kent Manufacturing produces a product that sells for $50.00. Fixed : 1258559

 

132.Kent Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Kent can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the revised break-even point in dollars with the purchase of the new machine.    

A. $500,000.

B. $440,678.

C. $521,923.

D. $480,000.

E. $460,000.

133.McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the contribution margin per composite unit.    

A. $310.

B. $200.

C. $300.

D. $330.

E. $285.

134.McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the break-even point in composite units.   

A. 2,092.

B. 3,805.

C. 1,350.

D. 1,395.

E. 1,550.

135.McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the number of units of Product A McCoy must sell to break even.   

A. 1,350.

B. 6,750.

C. 2,700.

D. 10,463.

E. 6,200.

136.McCoy Brothers manufactures and sells two products, A and Z in the ratio of 4:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the number of units of Product Z McCoy must sell to break even.   

A. 1,350.

B. 6,200.

C. 10,463.

D. 2,700.

E. 6,750.

137.Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Compute the contribution margin per unit.   

A. $450.

B. $300.

C. $200.

D. $190.

E. $150.

138.Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Compute the contribution margin ratio.   

A. 33.3%.

B. 66.7%.

C. 20.7%.

D. 50.0%.

E. 19.3%.

139.Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Compute the break-even point in units.   

A. 5,500.

B. 1,933.

C. 5,800.

D. 2,900.

E. 1,160.

140.Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Compute the break-even point in dollars.    

A. $1,740,000.

B. $2,612,612.

C. $1,304,348.

D. $4,202,899.

E. $2,640,000.

141.Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pre-tax income of $1,125,000. Compute the unit sales to earn the target pre-tax net income.   

A. 4,333.

B. 7,500.

C. 6,650.

D. 13,300.

E. 11,750.

142.Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Flannigan Company management targets an annual pre-tax income of $1,125,000. Compute the dollar sales to earn the target pre-tax net income.   

A. $5,640,000.

B. $5,990,990.

C. $3,378,378.

D. $2,991,004.

E. $2,612,613.

143.Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $300. Annual fixed costs are $870,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company.   

A. $1,560,000.

B. $2,612,612.

C. $1,587,388.

D. $2,895,652.

E. $2,460,000.

144.Carver Packing Company reports total contribution margin of $72,000 and pretax net income of $24,000 for the current month. In the next month, the company expects sales volume to increase by 8%. The degree of operating leverage and the expected percent change in income, respectively, are:   

A. 4.0 and 32%

B. 0.33 and 8%

C. 0.33 and 2.7%

D. 3.0 and 8%

E. 3.0 and 24%