9. Graylon produces a single product that sells for $140. Variable costs per unit e...

50.1K

Verified Solution

Question

Accounting

image

9. Graylon produces a single product that sells for $140. Variable costs per unit e qual $40. Total fixed costs are $60,000, planed sales are 1,500 units with no advertising. If increase advertising expenses by $10,000 will increase sales by 500 units, operating income will increase by___? A) $10,000 B) $40,000. C) $50,000 D) $20,000. 10. Sensitivity analysis is _-. A) a way of determining what will happen if assumptions change B) a way of seeing how employeeswill be affected by changes C) a way of determining how customerswill react to new products D) a way of seeing how far from budget actual results are 11. Globus Autos sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $32,000 of variable costs, and $10,000 of fixed costs. If Globus reduces the selling price by $1 per unit, the new margin of safety is: A) 5,500 units B) 2,500 units C) 1667 units D) 8,000 units

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students