16. 17. 18. 19. 20. The margin of safety is the difference between A. total revenue...
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16. 17. 18. 19. 20. The margin of safety is the difference between A. total revenue and total fixed costs. B. C. D. IM Enterprises sells two products, Crunchies and Munchies. Crunchies have a 32 percent contribution margin and Munchies have a 35 percent contribution margin. Profit earned from each box of Crunchies is $8 and the profit earned from each box of Munchies is $7. If the company is planning to generate revenue of $100, what should the company do? A. It should sell more Crunchies. B. It should sell more Munchies. C. It should sell an equal number of each product. D. No recommendation can be made from the data given. expected level of sales and the break-even point in revenue dollars. expected profit and profit at break-even. selling price and variable cost per unit. The incremental profit generated by the sale of one additional unit is equal to the A. contribution margin per unit. B. C. D. Diva Products produces scarves. The estimated fixed costs for the year are $164,500, and the estimated variable costs per unit are $9. The company expects to produce and sell 40,000 scarves at a unit selling price of $16 per unit. How much is the break-even point in units? A. 6,580 units B. C. D. B. C. D. selling price per unit. margin of safety per unit. incremental cost per unit. At Bahama Foods, the break-even point is 1,600 units. If fixed costs total $44,000 and variable costs are $12 per unit, what is the selling price per unit? A. $15.50 A. B. C. D. 10,300 units 23,500 units 376,000 units $39.50 $63,200 There is not enough information provided to determine the answer. 21. Splurge Electronics sells homework machines for $80 each. Variable costs per unit are $45 and total fixed costs are $43,750. Splurge is considering the purchase of new equipment that would increase fixed costs to $48,700, but decrease the variable costs per unit by $5. At that level, Splurge Electronics expects it can sell 1,500 units next year. What is the company's break-even point in units if it purchases the new equipment, assuming the selling price remains constant? (Round your answer to the nearest whole number.) 1,250 units 1,218 units 650 units 2,312 units 22. 23. 24. MDI Enterprises prepared the following income statement for June: Sales revenue (6,000 units) $150,000 Cost of goods sold: Fixed costs B. C. D. Variable costs Gross profit Operating expenses: Fixed costs Variable costs Operating income How much is MDI's total contribution margin? A. $120,000 $108,000 $105,000 $93,000 Selling price per doll Variable costs per doll: A. B. C. D. $18,000 30,000 27,000 12,000 Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure: Production (manufacturing costs) Selling and administration (non-manufacturing costs) Total fixed costs: Production (manufacturing costs) Selling and administration (non-manufacturing costs) 48,000 102,000 A. $5.20 B. $13.60 C. $10.00 D. $6.33 39.000 $63.000 Assume that the current sales level is 14,000 dolls. What impact would a 10% increase in sales have on income? Income would increase by 10% Income would increase by about 19% Income would increase by $11,200 Income would increase by about 51% $8.00 $1.20 $0.40 $40,000 per year $32,000 per year Tonto Rain Shields sells 3 types of umbrellas. Umbrella A sells for $20 and has variable cost of $9.00 per unit. Umbrella B sells for $17.00 and has variable cost of $12.00 per unit. Umbrella C sells for $9.00 and has variable costs of $6.00 per unit. The company sells in a mix of 2 units of A, 3 units of B, and 5 units of C. What is the weighted average contribution margin per unit for Tonto? 25. Mexi-Foods produces tacos and burritos. Its financial information follows for the month of June: Tacos Burritos $40,000 $160,000 8,000 15,000 $17.000 Sales revenue Fixed costs Variable costs Income A. B. C. D. How much is the break-even point in total sales dollars for Mexi-Foods assuming the sales mix is stable? 40,000 75.000 $45.000 $120,000 $87,273 $83,027 None of these answer choices are correct.. 16. 17. 18. 19. 20. The margin of safety is the difference between A. total revenue and total fixed costs. B. C. D. IM Enterprises sells two products, Crunchies and Munchies. Crunchies have a 32 percent contribution margin and Munchies have a 35 percent contribution margin. Profit earned from each box of Crunchies is $8 and the profit earned from each box of Munchies is $7. If the company is planning to generate revenue of $100, what should the company do? A. It should sell more Crunchies. B. It should sell more Munchies. C. It should sell an equal number of each product. D. No recommendation can be made from the data given. expected level of sales and the break-even point in revenue dollars. expected profit and profit at break-even. selling price and variable cost per unit. The incremental profit generated by the sale of one additional unit is equal to the A. contribution margin per unit. B. C. D. Diva Products produces scarves. The estimated fixed costs for the year are $164,500, and the estimated variable costs per unit are $9. The company expects to produce and sell 40,000 scarves at a unit selling price of $16 per unit. How much is the break-even point in units? A. 6,580 units B. C. D. B. C. D. selling price per unit. margin of safety per unit. incremental cost per unit. At Bahama Foods, the break-even point is 1,600 units. If fixed costs total $44,000 and variable costs are $12 per unit, what is the selling price per unit? A. $15.50 A. B. C. D. 10,300 units 23,500 units 376,000 units $39.50 $63,200 There is not enough information provided to determine the answer. 21. Splurge Electronics sells homework machines for $80 each. Variable costs per unit are $45 and total fixed costs are $43,750. Splurge is considering the purchase of new equipment that would increase fixed costs to $48,700, but decrease the variable costs per unit by $5. At that level, Splurge Electronics expects it can sell 1,500 units next year. What is the company's break-even point in units if it purchases the new equipment, assuming the selling price remains constant? (Round your answer to the nearest whole number.) 1,250 units 1,218 units 650 units 2,312 units 22. 23. 24. MDI Enterprises prepared the following income statement for June: Sales revenue (6,000 units) $150,000 Cost of goods sold: Fixed costs B. C. D. Variable costs Gross profit Operating expenses: Fixed costs Variable costs Operating income How much is MDI's total contribution margin? A. $120,000 $108,000 $105,000 $93,000 Selling price per doll Variable costs per doll: A. B. C. D. $18,000 30,000 27,000 12,000 Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure: Production (manufacturing costs) Selling and administration (non-manufacturing costs) Total fixed costs: Production (manufacturing costs) Selling and administration (non-manufacturing costs) 48,000 102,000 A. $5.20 B. $13.60 C. $10.00 D. $6.33 39.000 $63.000 Assume that the current sales level is 14,000 dolls. What impact would a 10% increase in sales have on income? Income would increase by 10% Income would increase by about 19% Income would increase by $11,200 Income would increase by about 51% $8.00 $1.20 $0.40 $40,000 per year $32,000 per year Tonto Rain Shields sells 3 types of umbrellas. Umbrella A sells for $20 and has variable cost of $9.00 per unit. Umbrella B sells for $17.00 and has variable cost of $12.00 per unit. Umbrella C sells for $9.00 and has variable costs of $6.00 per unit. The company sells in a mix of 2 units of A, 3 units of B, and 5 units of C. What is the weighted average contribution margin per unit for Tonto? 25. Mexi-Foods produces tacos and burritos. Its financial information follows for the month of June: Tacos Burritos $40,000 $160,000 8,000 15,000 $17.000 Sales revenue Fixed costs Variable costs Income A. B. C. D. How much is the break-even point in total sales dollars for Mexi-Foods assuming the sales mix is stable? 40,000 75.000 $45.000 $120,000 $87,273 $83,027 None of these answer choices are correct..
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