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Question
The following data relate to a product sold by Nelson Company:
| Total variable costs | $90,000 |
| Total fixed costs | 27,000 |
| Predicted after-tax income (30% tax) | 12,600 |
| Contribution margin per unit | 5 |
(a) Calculate the number of units expected to be sold.
(b) Calculate the expected total dollar sales.
Answer
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Related questions
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Q:
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Periods
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Q:
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B. It includes the time value of money.
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D. It cannot be used if a company records depreciation.
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Q:
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Q:
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Q:
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Q:
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B. $500 decrease
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Q:
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42
25 A. 15,000 croquet sets.
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Q:
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76 A. Both product A and product B should be processed further.
B. Neither product A nor product B should be processed further.
C. Only product B should be processed further.
D. Only product A should be processed further.
E. A processing further decision cannot be made from the available data.
Q:
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A. Income will decrease by $7 per unit.
B. Income will increase by $7 per unit.
C. Income will increase by $12 per unit.
D. Income will decrease by $12 per unit.
E. Income will increase by $10 per unit.
Q:
A company expects to produce and sell 7,000 units of a single product. The following additional company information is available: Variable costs (per unit) Production costs
$20 Nonproduction costs
$3 Fixed costs (in total) Overhead
$175,000 Nonproduction
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A. $23
B. $45
C. $27
D. $50
E. $5
Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.