Reference no: EM132954634
The following is Addition Corporation's contribution format, income statement for the last month:
Sales $1,000,000
Less Variable Expenses (700,000)
Contribution Margin 300,000
Less Fixed Expenses 180,000
Operating Income 120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.
Problem 1: What is the company's contribution margin ratio?
Problem 2: What is the Break-even in units?
Problem 3: If sales increase by 100 units, by how much should operating income increase?
Problem 4: How many units would the company have to sell to attain target operating profit of $150,000?
Problem 5: What is the company's margin of safety?
Problem 6: What is the company's Degree of Operating Leverage (DOL)?
|
Determine the actual fixed labour cost based on the flexible
: Sardine Enterprise is a small business, Wages of RM2,800 was paid to the manager. Determine the actual fixed labour cost based on the flexible budget.
|
|
Describe criterion for division of indirect costs
: Describe departmental income statement and the criterion for division of indirect costs among departments. Provide a hypothetical example
|
|
Determine the variance for the office expenses
: Hours 10,000 hours 20,000 hours. If total office expenses incurred for 12,000 hours is RM1,200,000, determine the variance for the office expenses.
|
|
What are the trade-offs involved in the decision
: What are the trade-offs involved in the decision of how much inventory the firm should carry? In what way does the cash manager face a similar trade-off
|
|
How many units would company have to sell to attain target
: The Addition Corporation's contribution format, How many units would the company have to sell to attain target operating profit of $150,000?
|
|
Evaluate current system of transfer pricing at strictlyfans
: Evaluate the current system of transfer pricing at StrictlyFans from the Electrical Components and the Housing Components perspective.
|
|
Compute the cost of the forward cover for a customer
: Spot rate £1: $1.635 - $ 1.6385 One month forward 0.5 - 0.47 cents premium. Compute the cost of the forward cover for a customer
|
|
Define and explain operational excellence
: Compare and contrast operational excellence and strategic management; Provide an example that demonstrates the difference between these two concepts.
|
|
List five examples of irrelevant costs
: Propose three (3) factors, other than price, that JR Sdn Bhd should consider before they decide to produce or purchase the automatic sensor.
|