i need help with these questions 28. Spice Inc.\'s variable costs as a percentag

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i need help with these questions

28. Spice Inc.'s variable costs as a percentage of sales are 70%; current sales are S600000, and, fixed costs are $120.000. How much will operating income change if sales increase by $30,000? 29. Zeke Company sells 28,000 units at $26 per unit. Variable costs are $12 per unit, and fixed costs are $75,000. The contribution margin ratio (rounded to the nearest whole percent) and the unit contribution margin are? 30. If fixed costs are $290,000, the unit selling price is $140, and the unit variable costs are $82, what are the break-even sales in units (rounded to the whole number)? 31. If fixed costs are $720,000 and variable costs are 60% of sales, what is the break-even point in sales dollars? 32. If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, what is the amount of sales in units (rounded to a whole number) required to realize an operating income of $200.000? 33. Miller Inc. has fixed costs of $200,000, the unit selling price is $30, and the unit variable costs are $15. What are the old and new break-even sales (units) if the unit selling price increases by $4? 34. True/False question regarding the understanding and definition of variable costs Page 6 1 6 Test #3 Review Ch 19, 20 & 21

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28 . Since Gross margin is 30% (100-70) and fixed cost will remain same, Net operating income will increase by 9000 (30000*30%). Giving below proof of it with detailed working Sale 600000 Sale after increase Net Increase Sale 600000 630000 30000 Variable Cost 420000 441000 21000 Gross Margin 180000 189000 9000 Fixed Cost 120000 120000 0 Net Income 60000 69000 9000 29 Per Unit Total Per unit*28000 Sale 26 728000 Variable Cost 12 336000 Contribution Margin 14 392000 Fixed Cost 75000 Net Income 317000 Contribution Margin Per unit 14 Contribution Margin Ratio                                                                                            53.85 14/26*100 30 Per Unit Sale 140 Variable Cost 82 Contribution Margin 58 Fixed Cost (Total) 290000 Break Even Point= Fixed Cost/Contribution Margin Break Even Point= 290000/58 Break Even Point= 5000 31. Break Even Point= Fixed Cost/Gross Margin Ratio Break Even Point= Fixed Cost/(100-Variable Cost) Break Even Point= 720000/(100-60) Break Even Point= 720000/40% Break Even Point= 1800000 32. Per Unit Sale 240 Variable Cost 110 Contribution Margin 130 Fixed Cost (Total) 1200000 Sale for Net Income of 200000= (Fixed Cost+Desired Profit)/Contribution Margin Sale for Net Income of 200000= (1200000+200000)/130 Sale for Net Income of 200000= 10769 33. Old New Working Sale 30 34 30+4 Variable Cost 15 17 15/30*34 Contribution Margin 15 17 Fixed Cost (Total) 200000 200000 Break Even Point= Fixed Cost/Contribution Margin Fixed Cost/Contribution Margin Break Even Point= 200000/15 200000/17 Break Even Point= 13333 11765

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