+ 1. PNG electric company manufactures a number of electric products. Rechargeable light is one of...

Transcribed Image Text:

+ 1. PNG electric company manufactures a number of electric products. Rechargeable light is one of the PNG's products that sells for $180/unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Monthly sales are 8,000 rechargeable lights. If PNG decreases selling price by 10% and sells 10,000 units what is the profit or loss? 200,000 a. b. 90,000 -50,000 d. 300,00 C. 2. Kool Company sells its only product for $11 per unit, and variable costs include production costs at $3 per unit, and selling and administrative costs at $2.50 per unit. Fixed costs for 10,000 units are $5,000. The contribution margin is: a. $6.00 per unit b. $4.50 per unit c. $5.50 per unit d. $4.00 per unit 3. PNG electric company manufactures a number of electric products. Rechargeable light is one of the PNG's products that sells for $180/unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Monthly sales are 8,000 rechargeable lights. What is the break even point in sales dollars? a. 1,000,000 b. 2,000,000 C. 500,000 d. 900,000 4. YCD Company sells its only product for $12 per unit, variable production costs are $2 per unit, and variable selling and administrative costs are $1 per unit. Fixed costs for 10,000 units are $40,000. The contribution margin ratio is: a. 82% b. 35% c. 68% d. 75% + 1. PNG electric company manufactures a number of electric products. Rechargeable light is one of the PNG's products that sells for $180/unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Monthly sales are 8,000 rechargeable lights. If PNG decreases selling price by 10% and sells 10,000 units what is the profit or loss? 200,000 a. b. 90,000 -50,000 d. 300,00 C. 2. Kool Company sells its only product for $11 per unit, and variable costs include production costs at $3 per unit, and selling and administrative costs at $2.50 per unit. Fixed costs for 10,000 units are $5,000. The contribution margin is: a. $6.00 per unit b. $4.50 per unit c. $5.50 per unit d. $4.00 per unit 3. PNG electric company manufactures a number of electric products. Rechargeable light is one of the PNG's products that sells for $180/unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Monthly sales are 8,000 rechargeable lights. What is the break even point in sales dollars? a. 1,000,000 b. 2,000,000 C. 500,000 d. 900,000 4. YCD Company sells its only product for $12 per unit, variable production costs are $2 per unit, and variable selling and administrative costs are $1 per unit. Fixed costs for 10,000 units are $40,000. The contribution margin ratio is: a. 82% b. 35% c. 68% d. 75%

Answer rating: 100% (QA)

1 Price is decreased by 10 to 162 Sales increase to 10000 units Revenue 162 10000 1620000 Variable c... View the full answer