LLX Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Selling price $150 Variable expenses $60 Contribution margin $90 The company is currently selling 7,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company’s monthly net operating income of this change?
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A sugar beet plant has supplied the following data: Tons…
A sugar beet plant has supplied the following data: Tons of sugar produced and sold 262,000 Sales revenue $ 1,179,000 Variable manufacturing expense $ 431,000 Fixed manufacturing expense $ 228,000 Variable selling and administrative expense $ 93,000 Fixed selling and administrative expense $ 218,000 Net operating income $ 209,000 What is the company’s contribution margin per unit? (Round your intermediate calculations to 2 decimal places.)
Supply costs at LLX Co. chain of gyms are listed below:…
Supply costs at LLX Co. chain of gyms are listed below: Client-Visits Supply Cost March 11,657 $ 28,402 April 11,453 $ 28,324 May 11,985 $ 28,526 June 13,000 $ 28,912 July 11,717 $ 28,424 August 11,203 $ 28,229 September 11,997 $ 28,531 October 11,688 $ 28,413 November 11,836 $ 28,470 Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates are closest to:Note: Round your intermediate calculations to 2 decimal places.
LLX Corporation has provided the following data concerning i…
LLX Corporation has provided the following data concerning its only product: Selling price $105 per unit Current sales 11,800 units Break-even sales 8,850 units What is the margin of safety in dollars?
Given the following per unit prices for the 6,000 units the…
Given the following per unit prices for the 6,000 units the company produces and sells: Selling price per unit $2.00 Variable production cost per unit $0.30 Fixed production cost $0.50 Sales commission per unit $0.20 Fixed selling expenses $0.25 The contribution margin per unit is:
The following information pertains to LLX Corporation’s cost…
The following information pertains to LLX Corporation’s cost-volume-profit relationships: Breakeven point in units sold 700 Variable expenses per unit $500 Total fixed expenses $175,000 How much will be contributed to net operating income by the 701st unit sold?
At an activity level of 8,400 units in a month, LLX Corporat…
At an activity level of 8,400 units in a month, LLX Corporation’s total variable maintenance and repair cost is $697,284 and its total fixed maintenance and repair cost is $464,100. This level of activity is within the relevant range which is 7,000 units to 10,000 units. What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 8,500 units in a month? (Round intermediate calculations to 2 decimal places.)
Given the following data: Selling price per unit $2.00…
Given the following data: Selling price per unit $2.00 Variable production cost per unit $0.30 Fixed production cost $3,000 Sales commission per unit $0.20 Fixed selling expenses $1,500 The break-even point in dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
LLX Inc. uses a predetermined overhead rate to apply manufac…
LLX Inc. uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Department A and on machine-hours in Department B. At the beginning of the year, the Corporation made the following estimates: Department A Department B Direct labor cost $ 90,000 $ 45,000 Manufacturing overhead $ 75,000 $ 60,000 Direct labor-hours 5,000 10,000 Machine-hours 3,000 12,000 What predetermined overhead rates would be used in Department A and Department B, respectively?
LLX Corporation uses a job-order costing system with a singl…
LLX Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Estimated total machine-hours 31,800 Estimated total fixed manufacturing overhead cost $ 159,000 Variable manufacturing overhead per machine-hour $ 2 Recently, Job X7 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 660 Direct labor cost $ 1,320 The amount of overhead applied to Job X7 is closest to:Note: Round your intermediate calculations to 2 decimal places.