At its present level of operations, a small manufacturing firm has total variable costs equal to 65%

Question:

At its present level of operations, a small manufacturing firm has total variable costs equal to 65% of sales and total fixed costs equal to 20% of sales. If sales change by $1.00, operating income will change by

a. $0.15

b. $0.35

c. $0.65

d. An answer can't be determined from this information.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Engineering Economics

ISBN: 978-0136118480

5th edition

Authors: Chan S. Park

See More Books

Question Posted: Jan 08, 2013 05:55 AM

See More Questions

A friend in West Virginia owns a small manufacturing firm employing about 50 workers. His son spent a semester in Japan as an exchange student. Upon return, he said to his dad: "Boy, the Japanese...
A small manufacturing firm produces two microwave switches, switch A and switch B. Each switch passes through two departments: assembly and testing. Switch A requires 4 hours of assembly and 1 hour...
A small manufacturing firm collected the following data on advertising expenditures A (in thousands of dollars) and total revenue R (in thousands of dollars). (a) Draw a scatter diagram of the data....
Suppose you buy Bond A at time=0. It is a 2-year, risk-free bond with coupon rate of 7% that compounds annually, and it has a face value of $1,000. (3 points) a) At time = 0, suppose you buy Bond A...
Lisa Crawford is getting into the moving-truck rental business in three nearby counties. She has the funds to buy about 100 trucks. Her studies show that 20% of the trucks rented in Bay County go to...
The double-toggle latching mechanism shown is used to hold member G against the support. Knowing that α = 60°, determine the force exerted on G. 15
Expansion device used in a domestic refrigerator of vapour compression type is (a) automatic expansion valve (b) thermostatic expansion valve (c) hand operated valve (d) capillary tube
1. Using the full spectrum of segmentation variables, describe how Virgin America segments and targets the market for airline services. 2. Which market targeting strategy is Virgin America following?...
Please help with at least three or more sources for a three to four page paper. Topic is soil compaction and stabilization. This is for soil mechanics for construction class.
Crude oil has a viscosity of about 0.8 Pas at normal temperature. A 50-km pipeline is to be constructed from an oil field to a tanker terminal. The pipeline is to deliver oil at the terminal at a...
A corporation has $5,000,000 of 10 percent bonds and $3,000,000 of 12 percent of preferred stock. The firms financial break even (assuming 40 percent tax rate) is? 1. 860K 2. 716K 3. 1.4MIL 4. 1.1MIL
ACME company has the following production costs for May: Units produced ............ 2,000 Direct Material ............ $20,000 Direct Labor 4,000 hrs @ ...... $15 per hour Supplies .................
As was mentioned in Section 22.3, one approach to defeating the tiny fragment attack is to enforce a minimum length of the transport header that must be contained in the first fragment of an IP...
Explain the types of appeals that are guaranteed by the Constitution. Do those convicted of crimes have the right to at least one appeal? If so, who guarantees this right?
What grouping of revenue do you believe your organization uses (revenue centers, care settings, service lines, other)?
Why is it important for prosecutors to have the ability to file an interlocutory appeal?
You need to design a heater to preheat a gas fl owing into a chemical reactor. The inlet temperature is 27C and the inlet pressure is 50 bar. You desire to heat the gas to 227C and 50 bar. You are...
Do you believe that this proportion (payer mix) will change in the future? Why?
Compare and contrast the structures of plant cells and animal cells.
Which one of the following anhydrous chloride is not obtained on direct heating of its hydrated chloride? (A) BaCl2 (B) CaClz (C) MgCl2 (D) SrCl2
Go to Canva or another design website. Look at the available slide templates and choose two that appeal to you. Why are you drawn to these examples? What about the colors or format do you like? What...
On May 31, 2014, the following data were accumulated to assist the accountant in preparing the adjusting entries for Oceanside Realty: a. Fees accrued but unbilled at May 31 are $19,750. b. The...
Selected account balances before adjustment for Intuit Realty at November 30, 2014, the end of the current year, are shown below. Data needed for year-end adjustments are as follows: a. Supplies on...
Selected account balances before adjustment for Intuit Realty at November 30, 2014, the end of the current year, are shown below. Data needed for year-end adjustments are as follows: a. Supplies on...
How does culture relate to political and security issues in the world? Please provide specific examples. 2 What are the most significant contemporary security issues in the world? How does culture...
Tree Seedlings has the following current-year purchases and sales for its only product. Units Acquired at Cost Date January 1 Activities Beginning inventory January 3 Sales February 14 February 15...
A resistor of an unknown resistance is placed in an insulated container filled with 0.50 kg of water. A voltage source is connected in series with the resistor and a current of 1.2 amps flows through...

At its present level of operations, a small manufacturing firm has total variable costs equal to 65%

Question:

Step by Step Answer:

a 015 Given sales change 1 Total cost Va...View the full answer

Contemporary Engineering Economics

Students also viewed these Managerial Accounting questions