question archive 1) During the current year, Winchester Company sold 98,000 units at a selling price of $22 per unit

1) During the current year, Winchester Company sold 98,000 units at a selling price of $22 per unit

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1) During the current year, Winchester Company sold 98,000 units at a selling price of $22 per unit. Variable cost per unit was $15, and Winchester's net income for the year was $58,000. What was the amount of Winchester's fixed costs?

$2,098,000

 

$1,276,000

 

$686,000

 

$628,000

 

2) The following income statement is provided for Ramirez Company for the current year:

Sales revenue (3,400 units × $20.90 per unit) $ 71,060
Cost of goods sold (variable; 3,400 units × $8.90 per unit) (30,260)
Cost of goods sold (fixed) (4,900)
Gross margin 35,900
Administrative salaries (6,900)
Depreciation (4,900)
Supplies (3,400 units × $2.90 per unit) (9,860)
Net income $ 14,240

What amount was the company's contribution margin?

$40,800

 

$30,940

 

$14,240

 

$35,900

 

3) A product has a contribution margin of $8 per unit and a selling price of $45 per unit. Fixed costs are $24,000. Assuming new technology increases the unit contribution margin by 60 percent but increases total fixed costs by $16,000, what is the new breakeven point in units? (Do not round intermediate calculations.)

6,960 units

 

3,000 units

 

6,480 units

 

3,125 units

4) 

pur-new-sol

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