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Accounting 202 Managerial Accounting (1 )If the variable cost as a percentage of sales for...

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Accounting

Accounting 202 Managerial Accounting (1 )If the variable cost as a percentage of sales for lemon Inc. are 80%, current sales are $600,000 and fixed costs are $130,000, calculate the change in operating income lemon inc's increase by $40, 000. (2) Now assume that lemon's tax rate is 30%, the variable costs as a percentage of sales is 80% and fixed costs are only $55,000. Determine the amount of sales dollars required for lemon to achieve a net income of $ 1,400,000. (3) Based on question 2, what amount of sales dollars will result in a break-even?

(B) Consider that the unit selling price is now $60 while the variable costs and fixed costs are $35 and $12 respectively. If the current sales of lemon inc are 10,000 units, determine the change in operating income or loss under the following independent conditions (1) sales increase by 8,000 units (2) fixed costs increase by 15% (3) Variable costs decrease by 20%, as sales increase by 5%.

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