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Diana Company, a sole proprietorship, sells only one product. The regular price is $160. Variable costs are 55% of this selling price, and fixed costs are $8,400 a month. Management decides to decrease the selling price from $160 to $145 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. (a) At the original selling price of $160 a unit, what is the contribution margin ratio? (b) At the original selling price of $160 a unit, what dollar volume of sales per month is required for Diana Company to break-even? (c) At the original selling price of $160 a unit, what dollar volume of sales per month is required for Diana Company to earn a monthly operating income of $6,500? (d) At the reduced selling price of $145 a unit, what is the contribution margin ratio? (e) At the reduced selling price of $145 a unit, what dollar volume of sales per month is required to break-even?
A certain airplane has two independent alternators to provide electrical power.The probability that a given alternator will fail on a 1-hour flight is .02. What is the probability that (a) both will fail? (b) Neither will fail? (c) One or the othe..
The revenues and expenses of Sunset Travel Service for the year ended April 30, 2014, Prepare an income statement for the current year ended April 30, 2014.
Circle Corporation makes a product that sells for $400 per unit. The variable costs to make this product are $220 per unit. Fixed costs total $750,000 for the year. Circle currently sells 5,000 units each year.
Compute the per unit product costs for each of the four products and compute this cost using ABC allocation for overhead. Show the computation for each per unit product cost in detail.
All-inclusive and current operating performance concepts of income represent opposing views regarding the inclusion of items to be reported in earnings on the income statement.
im using a accounting 1 book by warren reeve duchac my question is how do i journal the following entries on the
b-mart sells 5000 of blue jeans. the customer later tells b-mart that 200 of them are defective. the sale of the 5000
Proceeds from long-term borrowings, Purchases of plant assets, Purchases of inventories, Proceeds from sale of common stock. What is the net cash provided by investing activities
redbird inc. is considering an addition to its current operations. the figures are below. cost of the new project
Determine the total flexible budget materials variance for pigment. Indicate whether the variance is favorable or unfavorable and determine the materials price variance and indicate whether the variance is favorable (F) or unfavorable (U).
nick and jolene are married. nick is 61 and retired in 2011 from his job with amalgamated company. jolene is 56 and
section1. which of the following is ordinarily considered an extended procedure in external auditors independent audits
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