CVP Analysis for Multiple Companies
Not what you're looking for?
Last Year Easton company reported sales revenues of 720,000 a contribution margin as a percentage of sales revenue of 30% and fixed costs of 240,000 based on this info the break even point in sales dollars is?
640,000
880,000
744,000
800000
none of the above
Pool Company's variable costs ar 36% of sales revenue.Pool is contemplating an advertising campaign that will cost 20,000 based on a fixed fee. If sales are expected to increase by 80,000 as a result of the new campaign the companies net income will increase by what?
28800
64000
8800
31200
none of above
If variable costs are 15 per unit,sales revenues are 20 per unit and the break even point is 2,500 what are the fixed costs?
500
2500
12500
37500
none of the above
Star of the Sea School has an annual fixed cost of 150,000 and variable costs of 550 per student. Star of the Sea expects 345 students for the upcoming year. If the school wishes to earn a profit of 10,000, what should tuition per student be?
957
1014
1233
1346
none of the above
The Contribution margin ratio is 25% for Grain company and the break even point in sales is 200,000 if grain company desires 60,000 in net income. Sales revenues would have to be what?
260000
440000
280000
240000
none of the above
Purchase this Solution
Solution Summary
This solution conducts a cost-volume-profit analysis on the scenarios each company faces and identifies the correct answer. All calculations are shown.
Solution Preview
Last Year Easton company reported sales revenues of 720,000 a contribution margin as a percentage of sales revenue of 30% and fixed costs of 240,000 based on this info the break even point in sales dollars is?
=240000/30%=800,000
Answer = 800,000
Pool Company's variable costs are 36% of sales ...
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.