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Break Even Analysis
Target Profit Analysis
Margin of Safety
Operating Leverage
Changes in Net Income
100
If fixed expenses are $500,000 and the contribution margin per unit is $50, what is the break even point in units?
What is 10,000 units
100
If target profit is $80,000, fixed expenses are $25,000, and contribution margin per unit is $65, what is unit sales to attain the target profit?
What is 1,615.38 units
100
If sales is equal to $287,000 and the break even sales is $88,500 what is the margin of safety in dollars?
What is $198,500
100
If the contribution margin is $275,000 and net income is $25,000 what is the operating leverage?
What is 11
100
If we sell 1,400 units at a selling price of $50 and variable expense per unit is $14 and our fixed expenses totals $300. If we sell 100 more units and increase the monthly advertising by $300 what is the impact on net operating income?
What is an increase of $3,300.
200
If fixed expenses are $80,000 and the contribution margin ratio is 30%, what is the break even point in dollar sales?
What is $266,666.67
200
If target profit is $80,000, fixed expenses are $25,000, and contribution ratio is 67%, what is dollar sales to attain the target profit?
What is $156,716.42
200
If the margin of safety equals $267,500 and sales equals $500,050 what is the margin of safety percentage?
What is 53.49%
200
If the contribution margin is $184,500 and net income is $12,071 what is the operating leverage?
What is 15.28
200
If we sell 2,000 units at a selling price of $175 and variable expense per unit is $26 and our fixed expenses totals $3200. If we sell 75 more units and increase the monthly advertising by $4075 what is the impact on net operating income?
What is an increase of $7,100
300
When 1,500 units are sold, the total sales equals $360,000, variable expenses equals 158,400, and fixed expenses equals $20,000 what is the break even point in units?
What is 148.81 units
300
Erikas Corporation produces and sells a single product whose selling price for her product is $75 and the variable expense per unit is $25 with fixed expenses of $40,000. What is the dollar sales to attain a target profit of $100,000?
What is $208,955.22
300
If the margin of safety is $65,000 and the selling price for the unit is $1,049, what is the margin of safety in units?
What is 61.96 units
300
If sales is equal to $700,000 and variable expenses are $179,000. After fixed expenses are paid for the company has a net operating income of $232,000. What is the operating leverage?
What is 2.25
300
Sales (1,500 units) $138,000 Less: Variable Expenses 70,500 Contribution Margin ________ Less: Fixed Expenses 35,000 Net Operating Income________ What is the profit impact if this company were to use higher quality materials, which increases variable expenses by $12 to generate an increase in unit sales by 15%?
What is a decrease of $10,575.
400
When 1,500 units are sold, the total sales equals $360,000, variable expenses equals 158,400, and fixed expenses equals $20,000 what is the break even point in dollar sales?
What is $35,714.29
400
Sales (1,500 units): $138,000 Variable Expenses: 70,500 Fixed Expenses: 35,000 Net Operating Income: 32,500 If our company wants a target profit of $50,000 how many units must we sell?
What is $1,888.89 units
400
Given the following contribution income statement what is the margin of safety in dollars? Sales (2,600 units) $192,400 Less: Variable Expenses 67,600 Contribution Margin 124,800 Less: Fixed Expenses 75,000 Net Operating Income 49,800
What is $77,015.38
400
If total sales are $575,000, variable expenses are $212,000, and fixed expenses equals $45,073, what is the operating leverage? 363000 317927
What is 1.14
400
If we sell 12,500 units at $240 and the variable expense per unit is $98 and the fixed expenses are $699,000. If the company proposes a $19 commission per unit instead of paying $54,000 a month in salaries what is the effect on the company's net operating income if we sold the same amount of units?
What is a decrease of $183,500 in net operating income.
500
If the selling price for a cup of coffee is $1.60, the variable expense per unit is $0.79, and fixed expenses are $500, what is the break even point in dollar sales?
What is $980.39
500
Sales (1,500 units): $138,000 Variable Expenses: 70,500 Fixed Expenses: 35,000 Net Operating Income: 32,500 If our company wants a target profit of $50,000 how much dollar sales do we have to attain to reach this target profit?
What is $173,469.39
500
Given the following contribution income statement what is the margin of safety in units? Sales (3,100 units) $111,600 Less: Variable Expenses 49,600 Contribution Margin 62,000 Less: Fixed Expenses 42,000 Net Operating Income 20,000
What is 35,236.36 units
500
If selling price is $310, variable expenses are $60 with fixed expenses of $33,000 what is the operating leverage if we sell 1,250 units?
What is 1.12
500
If we sell 1,410 units at $600 and the variable expense per unit is $450 and the fixed expenses are $85,000. If the company uses a new component that increases variable cost by $21 that creates an increase of 625 units, what is the overall effect on the company's net operating income?
What is an increase of $51,015.