.QACCT CH 11 Flash cards I - × (2015-1 within the relevant rang du/webapps/ aunc

Question

.QACCT CH 11 Flash cards I - × (2015-1 within the relevant rang du/webapps/ aunch jsp?course-assessment-id·500536-1&course;_id:44S464-1&content;,d. 101 16666, 1a QUESTION 6 d has variable costs of $54 per unit. Haltom's annual fixed costs are Hallway Company produces a product that sells for $70 per unit an $240,000, and the company wishes to earn a proft of $60,000 Calculate the sales volume required (n units and dollars) in order to earn the desired profit 5,556 units/$388,920 4286 units/$300,000 18,750 units/$1,312.500 6) 15.000 units / $1,050,000 QUESTION 7 he nerast aof the tolouinbest descibes th relationsibetoal ed cot and total variable t given increasing volume? total fixed cost increase and total variable cost increases total fixed cost remains unchanged and total variable cost increases total fixed cost remains unchanged and total variable cost remains unchang total foced cost decreases and total variable cost remains unchanged Save All Answer 8 ? 8 9

Explanation / Answer

Q6. Answer is 18750 units /$ 1312500 Explanation: Contribution margin per unit:70-54 = 16 CM ratio: CM per unit / Selling price 16/70 *100 = 22.86% Target contribution: 240000+60000 = 300000 Ttarget sales in units: target Contribution/ Contribution margin per unit 300,000 /16 = 18750 Target sale in $: Target contribution/ CM ratio 300000 / 22.86% = 1312,500 Q7. Answer is Total fixed cost unchanged and Total variable costt increases

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