LIFESAVER! NO WORK NEEDS TO BE SHOWN! Madison Company produces a single product
ID: 2435522 • Letter: L
Question
LIFESAVER! NO WORK NEEDS TO BE SHOWN!
Madison Company produces a single product which sells for $30 per unit. Fixed expenses total $13,500 per month, and variable expenses are $12 per unit. During the current month, sales, in units, totaled 900 units.
Using the information above, answer the following questions:
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Contribution margin ratio.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Break-even point in units.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Break-even point in dollars.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Total contribution margin at the break-even point.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Net income during the current month.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Margin of safety during the current month.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Margin of safety rate during the current month.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Operating leverage during the current month.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Sales, in units, needed for a target profit of $3,600.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Sales, in dollars, needed for a target profit of $4,500.
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
If sales next month increase by 15%, what will be the net income?
- Select choice -1,125 Units40.0%16.7%$13,500$33,750750 Units$2,700$5,1306.0$4,500$30,000$22,500$12$18950 Units60.0%
Explanation / Answer
1. $18 (Unit Sale - Variable Expense per unit) 2. 40% 3. 1125 units 4. $30,000 5. $13,500 6. $2,700 7. $13,500 8. 6.0 9. 60% 10. 750 11. $22,500 12. $33,750
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