Author: Anonymous

Increased sales of high contribution margin items __________ the break-even point.

Cain Company and Abel Corporation have the following income statements for the current year:     Cain Company Abel Corporation Sales $50,000 $50,000 Variable expenses   10,000   25,000 Contribution margin $40,000 $25,000 Fixed expenses   25,000   10,000 Operating income $15,000 $15,000 ​ What is the degree of operating leverage for Cain Company for the current year?

Emerald Printing Company projected the following information for next year: ​ Selling price per unit $    60.00 Contribution margin per unit $    45.00 Total fixed costs $150,000 Tax rate 30% ​ What is the break-even point in dollars?

A decrease in the sales price in the basic cost-volume-profit model would

Colorado Corporation has the following sales forecast for the next quarter: ​ July, 4,000 units; August, 4,800 units; September, 5,600 units ​ Sales totaled 3,200 units in June. The June ending finished goods inventory was 800 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of next month’s planned sales. ​ The planned production for Colorado Corporation for July is

Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:   Activity Cost Formula Maintenance $11,000 + $2 per machine hour Machining $55,000 + $3 per machine hour Inspection $70,000 + $500 per batch Setups $2,000 per batch Purchasing $80,000 + $150 per purchase order ​ Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders   Maintenance $20,000 Machining 73,000 Inspection 73,000 Setups 18,000 Purchasing 82,000 ​ What is the budget variance for inspection in an activity-based performance report?

Bronze Company had the following information: ​ Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         30    — Setups  1,200    60 Engineering hours     40 1,000       Other data:       Total fixed costs (traditional) $500,000     Total fixed costs (Activity-based costing) 200,000     Unit selling price         50   ​ What is the break-even point in units using activity-based costing (ABC)? 

In a profit-volume graph, the slope of the profit line represents

At a price of $48, the estimated monthly sales of a product are 18,000 units. Variable costs include manufacturing costs of $27 and distribution costs of $9. Fixed costs are $60,000 per month.Required: Determine each of the following values:   a. Unit contribution margin b. Monthly break-even unit sales volume c. Before-tax monthly profit d. Monthly margin of safety in units

Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months for the current year are as follows:   Month Sales October 10,000 November 14,000 December 13,000 Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month’s sales. Asian Lamp expects to sell the lamps for $25 each. January sales is projected at 16,000 lamps. In going from the sales budget to the production budget, adjustments to the sales budget need to be made for