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CVP Analysis for Multiple Companies

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

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 ...

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.

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