7. Dybala Corporation\'s produces and sells a single product. Data concerning th
ID: 2598605 • Letter: 7
Question
7. Dybala Corporation's produces and sells a single product. Data concerning that product appear below:
90
60%
$ 60
40%
The company is currently selling 5,000 units per month. Fixed expenses are $242,800 per month. The marketing manager believes that a $6,000 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
Increase of $5,400
Decrease of $6,000
Increase of $11,400
Decrease of $5,400
8. Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)
The break-even in monthly dollar sales is closest to:
$217,000
$284,270
$149,730
$434,000
9. Data concerning Cutshall Enterprises Corporation's single product appear below:
4,805
2,493
4,907
5,069
10. A cement manufacturer has supplied the following data:
The company's contribution margin ratio is closest to:
45.1%
60.0%
68.9%
19.7%
7. Dybala Corporation's produces and sells a single product. Data concerning that product appear below:
Explanation / Answer
7)
Current net operating income = 60*5000 - 242800 = 57200
Proposed net operating income = 60*(5000+190) - (242800+6000) = 311400 - 248800 = 62600
Increase in net operating income = 62600 - 57200 = 5400
Answer is Increase of $5,400
8)
Break even units = 149730/(250 -77.50) = 149730/172.50 = 868 units
Break-even in monthly dollar sales = 868*250 = 217000
The break-even in monthly dollar sales is closest to:
$217,000
9)
Contribution per unit = 185 - 94 = 91
The unit sales to attain the company's monthly target profit of $24,000 = (437240+24000)/91 = 461240/91 = 5068.57 i.e 5069 units
Answer is 5069
10)
Contribution margin = Sales - Variable cost = 949000 - (226000+153600) = 569400
Company's contribution margin ratio = 569400/949000 *100 = 60%
Answer is 60.0%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.