Exam 8: Standard Costs

Loren Company's single product has a selling price of $15 per unit.Last year the company reported total variable expenses of $180,000,fixed expenses of $90,000,and a net income of $30,000.A study by the sales manager discloses that a 15% increase in the selling price would reduce unit sales by 10%.If her proposal is adopted,net income would increase by:

The contribution margin income statement format is used by many businesses for external reporting purposes.

If revenues are $1,000,000,variable costs are $400,000,and fixed costs are $480,000,what is the contribution margin ratio?

Last year,Perry Company reported profits of $4,200.Its variable expenses totalled $66,000 or $6 per unit.The unit contribution margin was $3.00.The break-even point in units for Perry Company is:

The company has an opportunity to secure a special order of 800 units if it is willing to drop the selling price on these units to $13.Costs of securing the special order would be $1,000.The special order would not affect the company's regular sales.If the special order is accepted,the company's overall net income will:

What is the breakeven point for this seashell necklace business?

Break-even analysis assumes which of the following to be true?

If the company wants its margin of safety to equal $35,000 next year,all other factors remaining the same,how many units will it need to sell (round your final answer to the nearest whole number)

Curtis Company anticipates selling 10,000 units next year.The company wants to earn a net income equal to 10% of sales.If variable expenses are $12 per unit and fixed expenses total $78,000 per year,what selling price must be established to achieve the desired level of net income?

The overall contribution margin ratio for the company as a whole is (round your final answer to the nearest tenth of a percent):

Based on the Oates Tannery data presented above,how many units of sales would be required to realize an operating profit of $40,000?

A company has provided the following data: If the dollar contribution margin per unit is increased by 10%,total fixed cost is decreased by 20%,and all other factors remain the same,net income will:

The following is last month's contribution format income statement: What is the company's break-even sales in units?

Last year,Black Company reported sales of $640,000,a contribution margin of $160,000,and a net loss of $40,000.Based on this information,the break-even point in total sales dollars was:

Rawlings Company prepared the following budget information for the coming year:C. Required:

The break-even point in units can be obtained by dividing total fixed expenses by the contribution margin ratio.

The break-even point in units sold will decrease if there is an increase in which of the following?

The break-even sales in dollars is (round your final answer to the nearest dollar):

How many photo-prints did the division have to sell to break even?

The total contribution margin decreases if sales volume remains the same and which of the following occurs?