Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then: Contribution margin per unit Contribution margin ratio Break-even in units A) Increases Increases Decreases B) No change No change No change C) No change Increases No change D) Increases No change Decreases Option C Option B Option D Option A

Answers

Answer 1

Answer:

D) Increases No change Decreases

Explanation:

Contribution margin is Sales less Variable Costs. This will increase if  the selling price per unit and the variable expense per unit both increase.

Contribution margin ratio is Contribution expressed as a percentage of Sales. This will stay the same when the selling price per unit and the variable expense per unit both increase by the same percentage.

Break-even in units is Fixed Costs divided my contribution per unit. This will decrease as the Contribution margin has increased.


Related Questions

Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 40,000 units next year and Product L is expected to sell 8,000 units. A unit of either product requires 0.4 direct labor-hours.
The company's total manufacturing overhead for the year is expected to be $1,632,000.
Required:
1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product? Product H Product L Overhead cost per unit
1-b. Compute the total amount of overhead cost that would be applied to each product Product H Product L Total Total overhead cost
2. Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $816,000 assigned to Product H and $816,000 assigned to Product L If this suggestion is followed, how much overhead cost per unit would be assigned to each product? (Round your answers to 2 decimal places.)
Product H Product L
Overhead cost per unit

Answers

Answer:

1a. Product H $16,000

Product L $3,200

1b. Product H $1,360,000

Product L $272,000

Total $1,632,000

2. Product H $20.40

Product L $102.00

Explanation:

1-a. Calculation for how much overhead cost per unit would be applied to each product

Product H Product L

Number of units produced 40,000 8,000( a)

Direct labor-hours per unit (b) 0.40 0.40 (b)

(a) × (b)=Total direct labor-hours 16,000 3,200 Total =$19,200

Therefore Amount of hoverhead cost per unit applied to each product is :

Product H $16,000

Product L $3,200

1-b. Computation for the total amount of overhead cost that would be applied to each product

Product H Product L Total

Manufacturing overhead applied per unit

0.40 DLH per unit × $85.00 per DLH= $34.00 (a)

Number of units produced 40,000 8,000 (b)

(a) × (b)=Total manufacturing overhead applied $1,360,000 $272,000

Total=Product H $1,360,000+Product L $272,000

Total= $1,632,000

Predetermined overhead rate of $ 85.00 per DLH is calculated as:

Total manufacturing overhead $ 1,632,000(a)

Total direct labor-hours 19,200 DLHs(b)

(a) ÷ (b) =Predetermined overhead rate $ 85.00 per DLH

Therefore the total amount of overhead cost that would be applied to each product is :

Product H $1,360,000

Product L $272,000

Total $1,632,000

C. Calculation for how much overhead cost per unit would be assigned to each product

Product H Product L Total

Total manufacturing overhead assigned (a)

$816,000 $816,000 =$1,632,000

Number of units produced (b) 40,000 8,000

(a) ÷ (b) =Manufacturing overhead per unit $20.40 $102.00

Therefore the amount of overhead cost per unit would be assigned to each product is :

Product H $20.40

Product L -$102.00

QS 23-11 Selection of sales mix LO P3 Excel Memory Company can sell all units of computer memory X and Y that it can produce, but it has limited production capacity. It can produce two units of X per hour or three units of Y per hour, and it has 4,700 production hours available. Contribution margin is $6 for product X and $5 for product Y. 1. Calculate contribution margin per production hour. 2. What is the most profitable sales mix for this Company

Answers

Answer:

Contribution margin per production hour

Product X = $12

Product Y = $15

Explanation:

Part 1

Contribution margin per production hour

Contribution margin per production hour = Contribution ÷ Time to produce one product

Therefore,

Product X =  $6 ÷ 0.5

                 = $12

Product Y =  $5 ÷ 0.33

                 = $15

Part 2

The Demand Units of Product X and Product Y are missing so the calculation of profitable sales mix is impossible.

This mix would have been calculated by :

Manufacturing all the units of Product Y since Y has the highest contribution margin per production hour (demand for Y × hours required per unit)With the remainder of hours out of 4,700 after producing all of Product Y demand, we would then produce Product X.

A company has $110,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $1,000 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

Answers

Answer:

Provision on accounts receivable = $110,000 * 4%  = $4,400

Total allowance for doubtful accounts = $4,400 - $1,000 = $3,400

Date   Account Titles and Explanation      Debit    Credit

           Bad debt expense                           $3,400

                  Allowance for doubtful accounts            $3,400

           (To record the bad debt expense)

Which case below best represents a case of price​ discrimination? A. A professional baseball team pays two players with different batting averages different salaries. B. A major airline sells tickets to senior citizens at lower prices than to other passengers. C. An insurance company offers discounts to safe drivers. D. A utility company charges less for electricity used during​ "off-peak" hours, when it does not have to operate its​ less-efficient generating plants.

Answers

Answer:

B. A major airline sells tickets to senior citizens at lower prices than to other passengers.

Explanation:

The pricing strategy refers to a strategy where the company charges the different prices for the similar products to the customers

In the case of the pure price discrimination, the seller would charge the price i.e. maximum he or she would have to pay also it is depend upon the specific characteristics and the amount charged to each and every group through a different price

Therefore the option B is correct

Germany is capital abundant country and Japan is labor abundant country. If computers are produced mostly by capital and beer is produced mostly by labor, the H-O model predicts that Question 22 options: Japan will export computers in exchange for beer. Germany will export computers in exchange for beer. Germany is too small to be of economic interest to Japan. Computers and beer don't mix, so trade cannot increase either country's well-being.

Answers

Answer:

If computers are produced mostly by capital and beer is produced mostly by labor, the H-O model predicts that

Germany will export computers in exchange for beer.

Explanation:

The H-O model or Heckscher-Ohlin theory is an economic model about the comparative advantages of nations in international trade.  The model tries to explain the equilibrium of trade existing between two countries that have varying specialties and natural resources.  According to the H-O model, countries export more goods and services for which they have plenty resources than they do for goods and services for which they have scarce resources.  For example, if a country has capital in abundance, it will export more of capital-intensive products while it will import labor-intensive products, because it has scarce labor resources.

A payroll tax is collected by which of the following methods?
A.
It is automatically deducted as a percentage of the paycheck.
B.
The paycheck is brought to the bank for the tax to be deducted.
C.
The payroll tax is paid with the income tax on April 15 of each year.
D.
The government deducts a percentage of your paycheck directly from your personal bank account.


Please select the best answer from the choices provided

A
B
C
D

Answers

A. It’s automatically deducted as a % of the paycheck. This is based on the assumption you are not a contracted employee receiving a 1099 tax form.

Answer:

A.

It is automatically deducted as a percentage of the paycheck.

Explanation:

just did it on the exam

why does this app suck i a way? i looked at this question: The managers want to know how many boxes of 12 cookies can be filled with the 3,258 cookies that have been baked. Fatima starts by subtracting the largest number of boxes she can easily calculate. She knows that 100 boxes of 12 cookies can be put into one crate. How many crates can be filled from the total of 3,258 cookies?

then an expert verified its 3 so i put it in and it said incorrect. am i not getting something or is it maybe incorrect in my platform?

Answers

Answer:

this app is fine, it has helped me a lot

Explanation:

BUT, you shouldnt rely on it all the time, unless you're genuinely struggling on grasping a topic I suggest trying to teach to yourself.

Other Questions
Pls help me with this ASAP Will give brainliest Which detail from "Drawn to Barre" best supports the idea that stonecutters unions fought for workers rights? By 1900, the Barre Granite Cutters' Union had over 1000 members and was the largest in the United States. Many who came to Barre had an interest in politics. Some stonecutters wanted to start labor unions. The rules for entry became stricter over the next 20 years. By then the people of Barre had already formed a union. At the start of the 20th century, the union realized that breathing stone dust while working was extremely dangerous to workers, and tried to raise awareness about conditions. What is the correct answer? Those two please I really need help 1. Which statement best describes the author's point of view in "WilliamShakespeare's Relevance in Today's Society Is Changing?" There are 16 circles and 12 squares. What is the simplest ratio of squares to circle Neo Malthusians believe that in addition to outstripping food supply, world population growth is also overtaxing other resources like fuel and energy in addition to outstripping food supply, world population growth is also overtaxing other resources like fuel and energy governments should discourage population growth because industrial growth is slowing in MDCs governments should discourage population growth because industrial growth is slowing in MDCs population growth in LDCs will end as the population in those countries become more educated population growth in A. LDCs will end as the population in those countries become more educated B. MDCs will experience a population crash due to their aging populations C. MDCs will experience a population crash due to their aging populations When 26400j of energy is supplied to a 2.0kg bloom of aluminum it temperature rise from 20oc to 35oc.The block is well so there is no energy lost to sorround determine the specific heat capacity of aluminum Is this sentence Michael Piscal, Headmaster of View Park Prep Charter School in Los Angeles said, "It's not working for teachers, it's not working for studentsit's not working for society." a main idea or claim ? Naomi has earned $135 mowing lawns the past two days. She worked 5 1/2 hours yesterday and 5 3/4 hourstoday. If Naomi is paid the same amount for every hour she works, how much does she earn per hour tomow lawns? Select the correct answer.Kevin has two test tubes filled with a clear liquid. One of them is water, and the other is vinegar. He adds a little baking powder to each liquid toidentify the test tube that contains vinegar. Select the correct observation and conclusion.OA The liquid in which baking powder dissolves is vinegar.OB. The liquid in which baking powder settles down is vinegar.OC. The liquid in which bubbles are formed is vinegar.OD. The liquid that does not change color is vinegar.O E. The test tube that becomes cold contains vinegar. Which of these statements describe you? Check all that apply.I have participated in an online discussion forum.I am comfortable speaking before large groups.I have led small or large group discussions in the classroom.I prefer working in groups rather than working on my own.I am able to share my thoughts on a topic with ease when participating in group discussions.I have been part of an online meeting that required me to use web-conferencing software. There are 130 people in a sport centre. 61 people use the gym.68 people use the swimming pool.60 people use the track.25 people use the gym and the pool.30 people use the pool and the track.19 people use the gym and the track.6 people use all three facilities.Given that a randomly selected person uses the gym and the track, what is the probability they do not use the swimming pool? evaluate the role of king tribhuwan to establish democracy in nepal A national consumer agency selected independent random samples of 45 owners of newer cars (less than five years old) and 40 owners of older cars (more than five years old) to estimate the difference in mean dollar cost of yearly routine maintenance, such as oil changes, tire rotations, filters, and wiper blades. The agency found the mean dollar cost per year for newer cars was $195 with a standard deviation of $46. For older cars, the mean was $286 with a standard deviation of $58. Which of the following represents the 95 percent confidence interval to estimate the difference (newer minus older) in the mean dollar cost of routine maintenance between newer and older cars?A. (195 - 286) + 1.992 underroot46/45 + 58/40 B. (286 - 195) + 1.992 underroot46^2/45+ 58^2/40 C. (195 - 286)+ 1.992 underrot 140 158/45+40 D. (286 - 195) + 1.992 46 1582 45 +40 E. (195-286) +1.992 462 + 58 45 40 HELP WILL MARK BRAINLIEST Plz Help The function shown models the total number of insects in a colony x months after a small number of the insects are brought into a region. What was the total number of insects in the colony when they were first brought into the region ? Enter your answer in the box plz help me asap i need help plz i will mark you as brainlist Help me find the area please!