Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 14 product q is currently sold at 20 per

QUESTION 14 Product Q is currently sold at 20 per unit, and variable costs are...

80.2K

Verified Solution

Question

Accounting

imageimage

QUESTION 14 Product Q is currently sold at 20 per unit, and variable costs are 60% of the selling price. If the current breakeven point is 12,000 units, the price which must be set to breakeven at 10,000 units is: A. 16.67 B. 21.60 C. 29.60 OD. 24.00 QUESTION 15 Auckland Limited sells plastic baskets. For the next year Auckland is planning to sell 5,400 baskets at a price of 40 per basket. The company is planning to achieve a contribution margin to sales ratio of 60% and margin of safety of 35%. What are the company's expected fixed costs for the next year? A. 140,400 B. 234,000 C. 84,240 D. 129,600 QUESTION 16 A study has been conducted to determine if one of the departments of Lucy Company should be discontinued. The contribution margin in the department is 100,000 per year. Fixed costs charged to the department are 130,000 per year. It is estimated that 80,000 of these fixed costs could be eliminated if the department is discontinued. These data indicate that if the department is discontinued, Lucy's overall net operating profit would: A. increase by 30,000 per year OB. decrease by 20,000 per year C. increase by 50,000 per year D. decrease by 50,000 per year

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