Question :
41. A company’s manager estimates that in the upcoming year, increasing : 1295596
41. 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 income? A. Net income will increase by $12,250.B. Net income will increase by $29,750.C. Net income will increase by $35,000.D. Net income will decrease by $4,000.
42. A company’s manager estimates that in the upcoming year, decreasing advertising costs by $35,000 will cause sales revenue to decrease by $80,000. If the company’s contribution margin ratio is 40%, what will be overall effect on net income? A. Net income will increase by $3,000.B. Net income will decrease by $3,000.C. Net income will increase by $18,000.D. Net income will decrease by $18,000.
43. Bergman Inc. has the following product information available:
Sales price
$12 per unit
Variable costs
$ 4 per unit
Fixed costs
$15,600
Units sold
10,400
Refer to the Bergman Inc. information above. What is the break-even point in units? A. 1,950B. 891C. 975D. 2,400
44. Bergman Inc. has the following product information available:
Sales price
$12 per unit
Variable costs
$ 4 per unit
Fixed costs
$15,600
Units sold
10,400
Refer to the Bergman Inc. information above. How many units needs to be sold in order to earn a target profit of $150,000? A. 25,477B. 20,700C. 10,350D. 18,750
45. Poole Products Inc. has the following product information available:
Sales price
$25 per unit
Variable costs
$10 per unit
Fixed costs
$36,000
Refer to the Poole Products Inc. information above. What is the break-even point in units? A. 1,029B. 1,440C. 2,400D. 5,400
46. Poole Products Inc. has the following product information available:
Sales price
$25 per unit
Variable costs
$10 per unit
Fixed costs
$36,000
Refer to the Poole Products Inc. information above. What is the break-even point in sales dollars? A. $21,600B. $36,000C. $60,000D. $90,000
47. Poole Products Inc. has the following product information available:
Sales price
$25 per unit
Variable costs
$10 per unit
Fixed costs
$36,000
Refer to the Poole Products Inc. information above. How many units need to be sold in order to earn a target profit of $249,000? A. 8,143 B. 14,200C. 16,600D. 19,000
48. Harrison Manufacturing has the following product information available:
Sales price
$50 per unit
Variable costs
$26 per unit
Fixed costs
$87,600
Refer to the Harrison Manufacturing information above. What is the break-even point in units? A. 3,369B. 1,752C. 3,650D. 1,153
49. Harrison Manufacturing has the following product information available:
Sales price
$50 per unit
Variable costs
$26 per unit
Fixed costs
$87,600
Refer to the Harrison Manufacturing information above. What is the break-even point in sales dollars? A. $ 87,600B. $ 42,048C. $168,462D. $182,500
50. Harrison Manufacturing has the following product information available:
Sales price
$50 per unit
Variable costs
$26 per unit
Fixed costs
$87,600
Refer to the Harrison Manufacturing information above. How many units need to be sold in order to earn a target profit of $175,000? A. 10,942B. 7,292C. 3,642D. 5,252