Determine effect of an increase in unit contribution margin

Assignment Help Accounting Basics
Reference no: EM131799398

Question - Phoenix-based CompTronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42,000 speaker sets:

Sales: $4,032,000

Variable costs: 1,008,000

Fixed costs: 2,736,000

Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $21.60 per set; annual fixed costs are anticipated to be $2,380,800. (In the following requirements, ignore income taxes.)

Required - Determine the effect of an increase in the unit contribution margin on net income.

Reference no: EM131799398

Questions Cloud

What are the critical factors an organization needs : What are the critical, strategic factors an organization needs to consider when making decisions about how to support employees' career management?
Line with king solomon decision : Read through 1 Kings 3:16-28 and Strategy 5. What stands out to you in this segment that are in line with King Solomon's decision?
Interests when resolving a conflict : When looking at Power, Rights, and Interests when resolving a conflict, which one is most used in you place of work and which one would you rather have and why?
Analyze the critical hrm areas of training : The CEO of Savannah Engineering, Inspection and Insurance Company (SEIIC) often says, "Our most important asset walks out the door every night."
Determine effect of an increase in unit contribution margin : Phoenix-based CompTronics manufactures audio speakers for desktop computers. Determine the effect of an increase in the unit contribution margin on net income
Presence of other students : The students are asked to respond orally in the presence of other students. What types of error might enter into this process? What might be a better approach?
What is the age distribution of the workforce : What is the age distribution of the workforce and What proportion of employees belongs to each ethnic group - What is the average income
Shaping enterprise performance : What role does culture play in shaping enterprise performance? How do leaders build effective cultures?
The payment of interest and the related amortization on july : Shamrock Company uses the straight-line method of amortization for bond premium or discount

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd