Assume the following (1) contribution margin = $150,000 (2) net operating income = $15,000, and (3) sales increase by 6%. Given these three assumptions, net operating income will increase by: Multiple Choice 60%. 1%. 6%. 25%.
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Assume the following (1) contribution margin = $150,000 (2) net operating income = $15,000, and (3) sales increase by 6%. Given these three assumptions, net operating income will increase by:
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60%.
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1%.
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6%.
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25%.
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- If the contribution margin ratio increases by 10% and all else remains the same, what is the effect on net income? O a. net income will increase by 20% b. more information is need to answer this question C. net income will increase d. net income will increase by 10%Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 300,000 120,000 180,000 60,000 $ 120,000 Per Unit $40 16 $24 If unit sales increase by 21%, then the best of estimate of the new net operating income is: Note: Do not round your intermediate calculations.Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC=q+35 MR=560+22q-q^2 Where q is the quantity produced and the firm’s break-even is 5 units per week You are Required to I. determine the total cost and the total revenue function in terms of q. II. estimate the output at which profit is maximize III. calculate the maximum profit
- Assume the following (1) total sales = $200,000 (2) breakeven sales = $120,000, and (3) total fixed expenses = $50,000. Given these three assumptions, the margin of safety is: Multiple Choice $80,000. $30,000. $70,000. $150,000.sing the following data, estimate the new Return on Investment if there is a 6% increase in sales - with average operating assets as the base. Sales $2,640,795 Contribution margin 38% Controllable fixed costs 248,297 Average operating assets $4,486,486 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign. Using the following data, estimate the new Return on Investment if there is a 9% decrease in variable and fixed costs- with average operating assets as the base. Sales $3,023,201 Contribution margin 37% Controllable fixed costs 244,010 Average operating assets $5,136,160 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.Assume the following (1) sales = $200,000 , (2) unit sales = 10,000 , (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? a.) the total fixed expense = $64000 b.) the break-even point is 8,077 units c.) the total variable expense = 74000 d.) the total contribution margin = $126000
- You are required to (i)Determine profit, when sales =200,000 Fixed cost=40,000 BEP=160,000 (ii)Determine sales, when fixed cost=20,000 Profit=10,000 BEP=40,000Solve the following independent cases and label your supporting computations properly. A) The company's projected profit for the coming year is as follows: Total P 200,000' 120,000 80,000 64,000 16,000 Per Unit P 20 Sales Less: Variable Costs 12 P 8 Contribution Margin P Less: Fixed Costs Net Income 1. Compute the additional profit that the company would earn if sales were P25,000 more than expected. B) KTA sells a special type of health food at a price of P16 per pound. Last year, it purchases this food from its supplier at a cost of P12 per pound. The supplier informed KTA that its cost increases and that this product will now be priced at P14 a pound. Over the years, KTA established a steady market and intends to pass the cost increase along to its customers and also add a P1 per unit to the price for additional profit. Fixed cost for the year are not expected to change and will remain at P34,000. Income tax rate is 32%. The net income after tax last year was P24,000. 2. If KTA can…Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $52,200. Given these three assumptions, the unit sales needed to achieve a target profit of $10,200 is:
- Using the following data, estimate the new Return on Investment if there is a 11% increase in sales - with average operating assets as the base. Sales $3,838,419 Contribution margin Controllable fixed costs Average operating assets 42% 368,503 $5,166,749 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.Using the data below compute of the following: Contribution margin per unit in 3. 2018, 4. 2019 5. 2020 BEP in sales units in 6. 2018 7. 2019 8. 2020 BEP in peso sales in 9. 2018 10. 2019 11. 2020 What is the required sales in unit for the desired Net profit 12. 2018 13. 2019 14. 2020 2018 2019 2020 Sales per unit Desired profit Fixed costs. P7.50 P9.00 P10.00 P15,000 P28,000 P30,000 360,000 375,000 420,000 Variable cost Cost per unit: Variable cost 2.50 4.00 4.00(20 pts) Given: Selling price $50/unit, total fixed expenses $95,000, variable expenses $40/unit. A) Find the BEP in Units and in Dollars. Assume the above variable expenses are reduced by 25% and the total fixed expenses are increased by 10%. B) Find the sales in units to achieve a profit of $30,000 assuming that the selling price stays the same. C) Find the net income if activity volume increases by 20%, assuming total sales are $32,000, variable expenses are $12,000, and fixed expenses are $20,000. (Unrelated to A&B)