Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? a.$8,000 decrease b.$8,000 increase c.$30,000 decrease d.$30,000 increase If fixed costs are $297,000, the unit selling price is $70, and the unit variable costs are $45, what are the old and new break-even sales (units) if the unit selling price increases by $8? a.6,600 units and 8,500 units b.11,880 units and 9,000 units c.11,880 units and 4,243 units d.4,243 units and 11,880 units
Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? a.$8,000 decrease b.$8,000 increase c.$30,000 decrease d.$30,000 increase If fixed costs are $297,000, the unit selling price is $70, and the unit variable costs are $45, what are the old and new break-even sales (units) if the unit selling price increases by $8? a.6,600 units and 8,500 units b.11,880 units and 9,000 units c.11,880 units and 4,243 units d.4,243 units and 11,880 units
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 13E
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Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000?
a.$8,000 decrease
b.$8,000 increase
c.$30,000 decrease
d.$30,000 increase
If fixed costs are $297,000, the unit selling price is $70, and the unit variable costs are $45, what are the old and new break-even sales (units) if the unit selling price increases by $8?
a.6,600 units and 8,500 units
b.11,880 units and 9,000 units
c.11,880 units and 4,243 units
d.4,243 units and 11,880 units
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