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Homework answers / question archive / 1) Total contribution margin is equal to 2) Sugar Corp has a selling price of $20, variable costs of $12 per unit, and fixed costs of $25,000
1) Total contribution margin is equal to
2) Sugar Corp has a selling price of $20, variable costs of $12 per unit, and fixed costs of $25,000. Maple expects profit of $300,000 at its anticipated level of production. If Sugar sells 5,000 units more than expected, how much higher will its profits be?
3. Orchid Corp. has a selling price of $15, variable costs of $10 per unit, and fixed costs of $25,000. If Orchid sells 13,000 units, contribution margin will equal
4. Laredo, Inc. has a contribution margin ratio of 45%. This month, sales revenue was $200,000, and profit was $40,000. If sales revenue increases by $20,000, by how much will profit increase?x
5.Kent Corp. has fixed costs of $25,000. Kent expects profit of $300,000 at its anticipated level of production, 65,000 units. What is Kent's unit contribution margin?
6. Jasmine Corp. has a selling price of $15, variable costs of $10 per unit, and fixed costs of $25,000. Contribution margin is $65,000. How many units did Jasmine sell?
7Rose Corp. has contribution margin of $65,000, variable costs of $10 per unit, and fixed costs of $25,000. If Rose sells 13,000 units, what was the selling price per unit?
8.If the number of units sold is the same every month, the profit from these units will be the same every month if
9. Lark, which uses the high-low method, had total costs of $25,000 at its lowest level of activity when 5,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, total costs were $39,000. Lark would estimate fixed costs as
10. If a firm uses absorption costing, which of the following actions taken by management would increase gross profit even if sales do not increase?
11. Palm, which uses the high-low method, had an average cost per unit of $50 at its lowest level of activity when sales equaled 1,000 units and an average cost per unit of $32.50 at its highest level of activity when sales equaled 2,000 units. Palm would estimate fixed costs as
12. McNeil uses the high-low method of estimating costs. McNeil had total costs of $50,000 at its lowest level of activity, when 5,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, total costs were $78,000. What would McNeil estimate its total cost to be if sales equaled 8,000 units?
13. Fremont, which uses the high-low method, reported total costs of $10 per unit at its lowest production level, 5,000 units. When production tripled to its highest level, the total cost per unit dropped to $5. Fremont would estimate its total fixed cost as
14. The contribution margin ratio is
