Question 14 (1 point) X Company sells its product for $100 per unit. It currentl

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Question 14 (1 point) X Company sells its product for $100 per unit. It currently has annual fixed costs of $80,000. The variable costs are $60 per unit. If the company's variable cost decreases to $50 per unit, give the increase (decrease) in the company's breakeven point in units) If your answer is a decrease put a minus sign in front of your numbers. For example, enter an increase of 150 as 150 and a decrease of 150 as-150 Do not enter $signs or commas. Round your answer to the nearest unit Save Question 15 (1 point) X Company sells its product for $100 per unit. It currently has annual fixed costs of $80,000. The variable costs are $60 per unit. Suppose the company can buy a new machine that will decrease its variable cost to $50 per unit but will increase its annual fixed cost by $15,000. Give the increase (decrease) in the company's breakeven point (in units) if the machine is purchased Do not enter $signs or commas. Round your answer to the nearest unit. If your answer is a decrease put a minus sign in front of your numbers. of 150 as -150 For example, enter an increase of 150 as 150 and a decrease Save Question 16 (1 point) X Company currently sells 2,500 units of its product for $100 per unit. It currently has annual fixed costs of $80,000. The variable costs are $60 per unit. Suppose the company can buy a new machine that will decrease its variable cost to $50 per unit but will increase its annual fixed costs by $15,000. Give the increase (decrease) in the company's annual net income if the machine is purchased (in dollars). answer to the nearest unit. If your answer is a decrease put a minus sign in front of your numbers. For example, enter an increase of $15,000 as 15000 and a decrease of $15,000 as -15000 Do not enter $ signs or commas. Round your

Explanation / Answer

Question 14) Contribution per unit= Selling price- variable cost per unit                                          =100-60= $40 Break even sale in units= Fixed cost/ contribution per unit                                               = 80000/40= 2000 units Break even point( units)= 2000 units Contribution per unit= Selling price- variable cost per unit                                          =100-50= $50 Break even sale in units= Fixed cost/ contribution per unit                                               = 80000/50= 1600 units Break even point( units)= 1600 units Therefore decrease in break even point( units) = 1600-2000= -400 units Question 15) Contribution per unit= Selling price- variable cost per unit                                          =100-60= $40 Break even sale in units= Fixed cost/ contribution per unit                                               = 80000/40= 2000 units Break even point( units)= 2000 units Contribution per unit= Selling price- variable cost per unit                                          =100-50= $50 New fixed cost= 80000+15000=$95000 Break even sale in units= Fixed cost/ contribution per unit                                               = 95000/50= 1900 units Break even point( units)= 1900 units Therefore decrease in break even point( units) if machine is purchased= 1900-2000= -100 units Question 16: Contribution margin income staement: Particulars Amount Sales(2500*100) 250000 Less: Variable cost(2500*60) 150000 contribution margin 100000 Less:Fixed cost 80000 NeT income 20000 Contribution margin income staement: Particulars Amount Sales(2500*100) 250000 Less: Variable cost(2500*60) 125000 contribution margin 125000 Less:Fixed cost(80000+15000) 95000 NeT income 30000 Therefore increase in inet income is 30000-20000= $10000

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