ACCT 2200 Lecture Notes - Lecture 3: Earnings Before Interest And Taxes, Contribution Margin, Operating Leverage
Get access
Related Documents
Related Questions
5 Jeanlouis, Inc., manufactures and sells two products: ProductD0 and Product D5. The company has an activity-based costing systemwith the following activity cost pools, activity measures, andexpected activity:
Estimated | Expected Activity | ||||
| Activity Measures |
|
|
|
|
Labor-related | DLHs | $313,743 | 3,600 | 3,300 | 6,900 |
Production orders | orders | 70,264 | 300 | 500 | 800 |
General factory | MHs | 253,555 | 4,300 | 4,200 | 8,500 |
$637,562 |
The total overhead applied to Product D5 under activity-basedcosting is closest to:
$319,252
$125,286
$304,920
$273,240
6 Ofarrell Corporation, a company that produces and sells asingle product, has provided its contribution format incomestatement for March. |
Sales (6,800 units) | $401,200 |
Variable expenses | 265,200 |
Contribution margin | 136,000 |
Fixed expenses | 103,500 |
Net operating income | $32,500 |
If the company sells 6,700 units, its net operating incomeshould be closest to: |
$31,979
$28,000
$30,500
$32,500
7
Dybala Corporation's produces and sells a single product. Dataconcerning that product appear below: |
Per Unit | Percent of Sales | |
Selling price | $170 | 100% |
Variable expenses | 85 | 50% |
Contribution margin | $ 85 | 50% |
The company is currently selling 5,400 units per month. Fixedexpenses are $402,200 per month. The marketing manager believesthat a $6,400 increase in the monthly advertising budget wouldresult in a 150 unit increase in monthly sales. What should be theoverall effect on the company's monthly net operating income ofthis change? |
Decrease of $6,400
Increase of $6,350
Decrease of $6,350
Increase of $12,750
8 Data concerning Wang Corporation's single product appearbelow: (Do not round your intermediatecalculations.) |
Selling price per unit | $ | 210.00 |
Variable expense per unit | $ | 73.50 |
Fixed expense per month | $ | 138,450 |
The break-even in monthly dollar sales is closest to:
$213,000
$287,550
$138,450
$426,000