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1.The variable expense per unit is $12 and the selling price per unit is $40. Th

ID: 2380558 • Letter: 1

Question

1.The variable   expense per unit is $12 and the selling price per unit is $40. Then the

contribution   margin ratio is 70%.

TRUE              FALSE   

2.If   a company with both variable and a fixed cost in its costs structure has its   fixed expenses

increase   by $10,000 per year, then the level of sales needed to break even will also   increase by $10,000.
   
  TRUE               FALSE    

a)The Old Post Office Company had net operating income of $30,000;

fixed expenses of $90,000 Sales of $200,000 and CM ratio of 60%.

1. The Old Post Office Company

  

1.The variable   expense per unit is $12 and the selling price per unit is $40. Then the

  

contribution   margin ratio is 70%.

  

TRUE              FALSE   

2.If   a company with both variable and a fixed cost in its costs structure has its   fixed expenses

  

increase   by $10,000 per year, then the level of sales needed to break even will also   increase by $10,000.
   
  TRUE               FALSE    

a)The Old Post Office Company had net operating income of $30,000;

fixed expenses of $90,000 Sales of $200,000 and CM ratio of 60%.

1. The Old Post Office Company

The variable expense per unit is $12 and the selling price per unit is $40. Then the contribution margin ratio is 70%. If a company with both variable and a fixed cost in its costs structure has its fixed expenses increase by $10,000 per year, then the level of sales needed to break even will also increase by $10,000. The Old Post Office Company had net operating income of $30,000; fixed expenses of $90,000 Sales of $200,000 and CM ratio of 60%. $150,000 $ 80,00 $ 50,000 $ 30,000 The Old Post Office Company's contribution margin is: $200,000 $ 80,000 $120,000 $ 90,000

Explanation / Answer

true



false


c.$50,000


D.$90,000