Which of the following is false?O If fixed costs are $100,000 and weighted-average unit contribution margin is $50, then the break-even point in units is2,000 units.O If Conan Corporation sells two products with a sales mix of 75%-25%, and the respective contribution margins are $100and $300, then weighted-average unit contribution margin is $150.O The weighted-average contribution margin cannot be used to calculate break-even sales for a mix of two or more products.O The weighted-average contribution margin of all the products is calculated when determining the break-even sales for amulti-product firm.

The contribution margin is the total amount of revenue left after adjusting the total variable cost…

Answered: Which of the following is false? Olf…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Ivanhoe, Inc. developed the following information for its product: Sales price Variable cost Contribution margin Total fixed costs Per Unit (a) $102.00 71.40 $30.60 $1,288,260 Answer the following independent questions. Number of units to be sold How many units must be sold to break even?
Given the following information, answer thequestions:• The ratio of variable cost per unit divided by selling price per unit equals 0.3.• Fixed costs amount to $60,000.(a) Draw the cost-volume-profit chart.(b) What is the break-even point?(c) What effect would an 8% decrease in sellingprice have on the break-even point from part (b)?
Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1. Compute the contribution margin percentage. Q2. Compute the selling price if variable costs are $16 per unit. Q3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. Q4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?
Given the following information. answer the questions:• The ratio of variable cost per unit divided by selling price per unit equals 0.25• Fixed costs amount to $50.000(a) Draw the cost-volume-profit diagram(b) What is the break-even point?(c) What effect would a 6% decrease in selling price have on the break-eventhe point from the part (b)?
1. Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65. PLEASE NOTE: The per-unit Contribution Margin will be rounded in whole dollars and shown with "$" and commas as needed (i.e. $12,345). A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio? PLEASE NOTE: The Contribution Margin Ratio will be shown as a percentage, shown with "%" and rounded to three decimal places (i.e. 12.3%).
Based on the below examples (1&2), how can I figure out which contribution margin is needed to calculate the required Break-even? Between (Contribution Margin Per Unit) or (Contribution Margin Ratio). Example (1) (Why we didn't take CM/unit, but instead, CMR is calculated?) Northern Pacific Fixtures Corporation sells a single product for $28 per unit. If variable expenses are 65% of sales and fixed expenses total $9,800, the break-even point is? Example (2) (this one I know how to calculate). Mishoe Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (1,000 units)...................... $50,000 Variable expenses...................... 32,500 Contribution margin..................... 17,500 Fixed expenses.......................... 12,250 Net operating income.................. $5,250 The break-even point in unit sales is closest…
Current Attempt in Progress Wildhorse Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches" and small, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Wildhorse believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has foxed costs of $13,868.100 Sales mix is determined based upon total sales dollars. (a) What is the company's break-even point in total sales dollars? At the break-even point, how much of the company's sales are provided by each type of service? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places eg.0.22 and round final answers to O decimal places, eg 2.510) Total break-even sales Sale of mail pouches and small boxes Sale of non-standard…
a.Explain why contribution margin per unit becomes profit per unit above the break-even point b. If the contribution margin per unit is $7 and the break-even point is 10,000 units, how much profit will a firm make if 15,000 units are sold? c.What is the variable cost ratio? The contribution margin ratio? How are the two ratios related?
Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.) A Sale price per unit $2,100 Variable costs per unit 840 Total fixed costs 1,045,800 Target profit 1,600,200 Calculate: Contribution margin per unit Contribution margin ratio % Required units to break even Required sales dollars to break even Required units to achieve target profit
Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit.
Bradley Company sells a product that has variable costs of $54 each and a sales price $79 each. Bradley has fixed costs of $110,000 and a desired profit of $35,000. If the Company is able to reduce its variable cost per unit to $39 while holding all other items constant, the number of units that must be sold to earn the desired profit will
2.9 Company X and Company Y sells the same product for the same price. Company X has fixed costs of Birr 100 and variable costs of Birr 10 per unit. Company Y has fixed costs of Birr 200 and variable costs of Birr8. What is the unit sales price at which these companies will have the same break-even point in terms of unit sales?

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