Explore BrainMass
Share

Profit, Income, Sales Revenue, Ending Inventory, and Break-Even Point

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Question 7: On Company and Off Company report the following results:

Both companies increase sales next year by $500,000. Which company will have the higher profit next year?

A Neither; both companies will have the same profit.
B On will have higher profit ($100,000 greater than Off).
C Off will have higher profit ($100,000 greater than On).
D Off will have higher profit ($200,000 greater than On).

Question 8:

Assume that 500,000 CDs are produced and 450,000 are sold in 2008. What is income under Full Costing?

A $50,000
B $500,000
C $150,000
D $1,850,000

Question 9: For O'Brien Company, selling price is $30 per unit and variable costs are $18 per unit. Fixed costs are $90,000. At the break-even point, O'Brien would report sales revenue of

A $ 7,500.
B $144,000.
C $150,000.
D $225,000.

Question 10:

Assume that 500,000 CDs are produced and 450,000 are sold in 2008. What is ending inventory under variable costing?

A $150,000
B $200,000
C $250,000
D $300,000

Question 11: Last year, Bond Products had profits of $35,400. Sales of 70,800 units resulted in revenues of $354,000. Variable costs were $3.50 per unit. What is Bond's break-even point?

A 70,800 units
B 236,000 units
C 47,200 units
D 118,000 units

Question 12: Randy Company produces a single product that is sold for $85 per unit. If variable costs per unit are $26 and fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000?

A 1,735
B 618
C 890
D 2,500

© BrainMass Inc. brainmass.com October 25, 2018, 2:01 am ad1c9bdddf
https://brainmass.com/business/inventory/283720

Attachments

Solution Preview

Question 7: On Company and Off Company report the following results:

Both companies increase sales next year by $500,000. Which company will have the higher profit next year?

A Neither; both companies will have the same profit.
B On will have higher profit ($100,000 greater than Off).
C Off will have higher profit ($100,000 greater than On).
D Off will have higher profit ($200,000 greater than On).

The company having lower Variable costs

B) On will have higher profit ($100,000 greater than Off).

Difference in Profit = Difference in CM ratio * Increase in ...

Solution Summary

This solution provides step-by-step calculations and answers for profit, income, sales revenue, ending inventory and break-even point.

$2.19
See Also This Related BrainMass Solution

Variable Cost, Break-Even, Net Income, Inventory Calculations

1. During 2005, the Latrex Corporation had cash and credit sales of $47,000 and $45,500 respectively. The company also collected accounts receivable of $26,700 and incurred expenses of $68,500, 80 percent of which were paid during the year. In addition, Latrex paid $24,000 for a 12-month building rental, beginning on July 1, 2005. What was Latrex's accrual-basis net income (loss) for 2005?

2. If a firm's beginning inventory is $70,000, goods purchased during the period cost $260,000, and the cost of goods sold is $300,000, what is the ending inventory?

3. During the year, Samson Company earned revenues of $228,000 and incurred $196,000 for various operating expenses. There are 2,500 shares of stock outstanding. What is Earnings per share?

4. Goliath Company had the following account balances: Sales Revenue, $150,000; Sales Returns and Allowances, $3,000; Sales Discounts, $3,600; and Bad Debts, $600. Given these balances, what is the amount of net sales?

5. If variable costs are $20 per unit, revenues are $40 per unit, and fixed costs are $10,000, what is the break-even point in units?

6. During June, Bezold Corporation produced 12,000 units and sold them for $20 per unit. Total fixed costs for the period were $154,000, and the operating profit was $26,000.What was the variable cost per unit in June?

7. If demand is 10,000 units, cost of carry is $2 per unit, and cost of placing an order is $100, what is the EOQ?

8. What is the economic order quantity for an automobile dealer selling 2,000 cars per year, at a cost of $750 per order, and a carrying cost of $300 per automobile?

View Full Posting Details