Question: If fixed costs are $450,000 and the unit contribution margin is $50, the sales necessary to earn an operating income of $50,000 are 10,000 units.

If fixed costs are $450,000 and the unit contribution margin is $50, the sales necessary to earn an operating income of $50,000 are 10,000 units. True or false?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Please help me with this. Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $10 per unit, and fixed expenses total $220,000...

1 Wells Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs total $400,000 and the weighted- average contribution margin is $100. How many units of...

Whirly Corporation?s most recent income statement is shown below: Total Per Unit Sales (8,000 units) $ 256,000 $ 32.00 Variable expenses 160,000 20.00 Contribution margin 96,000 $ 12.00 Fixed...

Answer all Questions This individual project is worth 60% of your final grade. The assignment is due on May 15th, 2020. Question 1 (30 Marks) The concept of budgeting has been a long established...

ASSIGNMENT 6: ACCOUNTING AND FINANCIAL MANAGEMENT QUESTION 1 1.1. Differentiate in detail between primary and secondary markets. 1.2. Discuss in detail the difference between money markets and...

Luxguard Home Paint Company produces exterior latex paint, which it sells in one gallon containers. The company has two processing departments Base Fab and Finishing. White paint which is used as a...

Please assist with the attached. The Sagicor Cave Hill School of Business The University of The West Indies GEMA0101 Management Accounting and Financial Analysis Individual Project This individual...

Please answer all questions. Thts individual projct Is word-I 5056 of your nal grade. The assignment is due on May 15", mm. Question 1 (3%} Marks] The concept of budgeting has been a long established...

Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (9,000 units) $ 297,000 $ 33.00 Variable expenses 162,000 18.00 Contribution...

please I need help with this ethics question. Thanks Eric Severson makes a distinction between "fault" and "responsibility," and uses the example of a child falling into a pool to argue that even if...

Find the pooled variance for two populations with the following sample sizes and sample variances. n1 = 9, n2 = 15, s21 = 2.5, s22 = 3.5. Compare with the value in Exercise 5.

Pine Tree Company's balance sheet showed total current assets of $ 4 , 2 5 0 , all of which were required in operations. Its current liabilities consisted of $ 9 7 5 of accounts payable, $ 6 0 0 of 6...

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

analyse your own performance and set yourself objectives for the future.

3. Performance appraisals are intended to motivate employees towards greater productivity and improve communication/relations between managers and their team members. Explain why performance...

give examples of techniques used in the management of performance at work