Q.1) The manufacturer of a product had fixed costs of $120,800 per year. The variable costs are
Question:
Q.1) The manufacturer of a product had fixed costs of $120,800 per year. The variable costs are 50% of selling price. What is the break-even point in sales dollars?
Q.2) A bike manufacturing company has fixed costs of $170,000 per annum and the variable costs are 46% of sales. If the variable costs increased to 55% of sales, what additional sales must be made to break-even?
Q.3) A company that manufactures monitors has fixed costs of $78,000 per annum. The variable costs are 31% of sales and the profit is $58,500. When the selling price was reduced by 15%, the sales volume increased by 20%. a. What was the original sales revenue? b. What were the original variable costs? c. What is the new sales revenue? d. What are the new variable costs? e. What is the amount of change in net income?
Q.4)A company that produces cameras has fixed costs of $163,000 per annum. The variable costs are 46% of sales and profit was $62,500. When the selling price was reduced by 11%, the sales volume increased by 22%. a. What was the original sales revenue? b. What were the original variable costs? c. What is the new sales revenue? d. What is the new variable cost? e. What is the amount of change in net income?
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly