BUSN 314 Managerial Accounting/Exam I- Chapters 5 and 15/Fall 2017 your answer i
ID: 2562056 • Letter: B
Question
BUSN 314 Managerial Accounting/Exam I- Chapters 5 and 15/Fall 2017 your answer in the space provided or on a separate sheet of paper ) Brihoo Corporation produces and sells a single product. Data concerning that product appear below Selling price per unit Variable expense per unit Fixed expense per month S 230.00 103.50 S 518,650 Required: the company's monthly target profit is $12,650. Determine the unit sales to attain that targ b. Assume the company's monthly target profit is $63,250. Determine the dollar sales to attain that ta profit TRUEFALSE. Write T if the statement is true and F' if the statement is false. 2) Fawn Company's margin of safety is $90,000. If the company's sales drop by $80,000, it 2) T will still have positive net operating income. 3) Liquidity refers to how quickly an asset can be converted into cash. 3) ULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 4) Break-even analysis assumes that: 4) A) Total revenue is constant. B) Unit variable expense is constant. C) Unit fixed expense is constant. D) Selling prices must fall in order to generate more revenue.Explanation / Answer
1.
A. Unit sales to attain target profit=(fixed cost+target profit)/contribution margin per unit
=(518,650+12650)/(230-103.50)
=4,200 units
B.
Unit sales to attain target profit=(fixed cost+target profit)/contribution margin per unit
=(518,650+63,250)/(230-103.50)
=4,600 units
Dollars sales=4600×$230
=$1,058,000
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