Reference no: EM131753863
Dybala Corporation produces and sells a single product. Data concerning that product appear below:
|
Per Unit |
|
Percent of Sales |
Selling price |
$ |
120 |
|
|
|
100 |
% |
Variable expenses |
|
84 |
|
|
|
70 |
% |
Contribution margin |
|
36 |
|
|
|
30 |
% |
The company is currently selling 5,500 units per month. Fixed expenses are $120,000 per month. The marketing manager believes that a $7,600 increase in the monthly advertising budget would result in a 360 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
increase of $5,360
decrease of $7,600
increase of $12,960
decrease of $5,360
Carlton Corporation sells a single product at a selling price of $63 per unit. Variable expenses are $41 per unit and fixed expenses are $99,220. Carlton's break-even point is:
4,510 units
2,420 units
4,719 units
1,575 units
Lore Corporation has provided the following information:
|
|
|
|
Sales |
$ |
360,000 |
|
Variable expenses |
$ |
72,000 |
|
Fixed expenses |
$ |
11,280 |
|
Lore's break-even point in dollar sales is:
$83,280
$11,280
$14,100
$72,000
Under absorption costing, product costs include:
|
Variable manufacturing overhead |
Fixed manufacturing overhead |
A) |
Yes |
Yes |
B) |
No |
No |
C) |
Yes |
No |
D) |
No |
Yes |
|
Option A Option B Option C Option D
The term gross margin is used in reports prepared using:
both absorption costing and variable costing.
absorption costing but not variable costing.
variable costing but not absorption costing.
neither variable costing nor absorption costing.