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%
