accounting ch. 3

1) A company's contribution margin per unit is $25. If the company increases its activity level from 200 units to 350 units, how much will its total contribution margin increase?

$3,750

A company wants to earn an income of 60,000 after taxes. If the tax rate is 32% what much the company's pre tax income in order to have 60,000 after tax?

$88,235

1) A company's product sells for $150 and has a variable cost of $60 associated with the product. What is the contribution margin per unit?

$90

If a company has a fc of 6000 per month and their product that sells for 200 has a contribution margin has a ratio of 30%, how many units must they sell to break even?

100

When sales prices decreases and all other variables are held constant, the breakeven point will

Increase

When variable costs increase and all other variables remain unchanged the breakeven point will

increase

When fixed costs decrease and all variable remain unchanged the break even point will

Decrease

1) The amount of a unit's sales price that helps cover fixed expense is its

contribution margin

1) A company sells its products for$ 80 per unit and has a per unit variable costs of $30. What is the contribution margin per unit?

$50

A company has pre tax or operating income of $120,000. If the tax rate is 40%, what is the company's after tax income?

$72,000

When fixed costs increase and all other variables remain unchanged, the contribution margin will

remain unchanged

1) A company product sells for $150 and has a vc of $60 associated with the product. What is its contribution margin ratio?

60%

When sales price increases and all other variables are held constant, the break-even point will

decrease