Exam 3: Cost-Volume-Profit Analysis

If planned net income is $30,000 and the tax rate is 30%,then planned operating income would be $39,000.

Kanga Company is considering two different production plans. Option one: Fixed costs of $10,000 and a breakeven point of 500 units. Option two: Fixed costs of $20,000 and a breakeven point of 700 units. Which option should Kanga choose if it is expecting to produce 600 units?

Contribution Margin = Total revenues - Total variable costs

Anglico's most recent income statement is given below. Required: f.Compute how many units must be sold to achieve g.Compute the revenue needed to achieve an after tax

In multiproduct situations,when sales mix shifts toward the product with the lowest contribution margin then ________.

Tally Corp.sells software during the recruiting seasons.During the current year,10,000 software packages were sold resulting in $470,000 of sales revenue,$130,000 of variable costs,and $48,000 of fixed costs. If sales increase by $80,000,operating income will increase by ________.(Round interim calculations to two decimal places and the final answer to the nearest whole dollar. )

In the merchandising sector ________.

Assume the following cost information for Fernandez Company: What is the number of units that must be sold to earn an after-tax net income of $50,000? (Do not round interim calculations and round the final answer to the nearest unit. )

A profit-volume graph shows the impact on operating income from changes in the output level.