1) Last year sales were $40,000 and variable costs were $24,000 and we broke even. Tax...

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1) Last year sales were $40,000 and variable costs were $24,000 and we broke even. Tax rate = 30%. How much do we need to sell this year to earn net income after taxes of $7,000? a) VC %= b) CM%= c) Fixed cost d) Before Tax Operating income necessary to earn $7,000 = e) Sales needed to earn $10,000 this year: 2) We sell A:B:C in ratio of 7:3:2. The CMs are: A-$3 Fixed costs are $88,000. B-$5 C-$4 a) How many times do we need to sell this sales mix to break even? b) How many of each item are sold at breakeven with the current sales mix? A- B- C- 3) A company had sales last year of $30,000 and an operating loss $5,000. If their variable costs last year were $18,000, how much do they need to sell this year to earn an operating income of $10,000? Assume no change in cost behavior. 4) We start with 5,000 kg. of materials. We purchase 80,000 kg. of material. If we have 25,000 kg. of material left at year-end, how much did we use? 5) We start with 200 kg. of materials. We purchase 1,000 kg. of material. Each kg. cost $6. If we use 1,100 kg. of material... a) How much is left at year end? b) What dollar value does it have? 6) We make 8,000 finished units and the cost of goods manufactured is $80,000. What is the average cost per unit? 7) Fixed expenses are $80,000. Selling price: $10. Variable cost per unit: $8. What is the breakeven point in units? 8) Beginning inventory of finished goods 5,000 Number of units produced Ending inventory of finished goods 75,000 2,000 How many units were sold? 9) You purchase a sheet of wood for $84. It is cut into 12 hockey sticks. While molding, one out of every 15 sticks breaks. What is the cost of wood per finished unit? 1) Last year sales were $40,000 and variable costs were $24,000 and we broke even. Tax rate = 30%. How much do we need to sell this year to earn net income after taxes of $7,000? a) VC %= b) CM%= c) Fixed cost d) Before Tax Operating income necessary to earn $7,000 = e) Sales needed to earn $10,000 this year: 2) We sell A:B:C in ratio of 7:3:2. The CMs are: A-$3 Fixed costs are $88,000. B-$5 C-$4 a) How many times do we need to sell this sales mix to break even? b) How many of each item are sold at breakeven with the current sales mix? A- B- C- 3) A company had sales last year of $30,000 and an operating loss $5,000. If their variable costs last year were $18,000, how much do they need to sell this year to earn an operating income of $10,000? Assume no change in cost behavior. 4) We start with 5,000 kg. of materials. We purchase 80,000 kg. of material. If we have 25,000 kg. of material left at year-end, how much did we use? 5) We start with 200 kg. of materials. We purchase 1,000 kg. of material. Each kg. cost $6. If we use 1,100 kg. of material... a) How much is left at year end? b) What dollar value does it have? 6) We make 8,000 finished units and the cost of goods manufactured is $80,000. What is the average cost per unit? 7) Fixed expenses are $80,000. Selling price: $10. Variable cost per unit: $8. What is the breakeven point in units? 8) Beginning inventory of finished goods 5,000 Number of units produced Ending inventory of finished goods 75,000 2,000 How many units were sold? 9) You purchase a sheet of wood for $84. It is cut into 12 hockey sticks. While molding, one out of every 15 sticks breaks. What is the cost of wood per finished unit?

Answer rating: 100% (QA)

1 a Variable Cost Percentage VC Variable Costs Sales VC 24000 40000 60 b Contribution Margin Percentage CM 100 VC CM 100 60 40 c Fixed Costs Sales Var... View the full answer