Maurice Tutor

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About Maurice Tutor

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Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 408 Weeks Ago, 3 Days Ago
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 20 Nov 2017 My Price 9.00

Sarah Company

Aeveen Company had revenues of $930,000 last year with total variable costs of

$399,900 and fixed costs of $307,800.

 

Required

1.    What is the variable cost ratio for Aeveen? What is the contribution margin ratio?

2.    What is the break-even point in sales revenue?

3.    What was the margin of safety for Aeveen last year?

4.    Aeveen is considering starting a multimedia advertising campaign that is sup- posed to increase sales by $7,500 per year. The campaign will cost $5,000. Is the advertising campaign a good idea? Explain.

 

Solve the following independent problems.

 

Required

1.    Sarah Company’s break-even point is 1,500 units. Variable cost per unit is $300; total fixed costs are $120,000 per year. What price does Sarah charge?

2.    Jesper Company charges a price of $3.50; total fixed costs are $160,000 per year; and the break-even point is 128,000 units. What is the variable cost per unit?

3.    Aisha Company sold 35,000 units last year at a price of $40. Variable cost per unit was $30. The margin of safety was 300 units. What was the total fixed cost?

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Nov 2017 09:11 PM My Price 9.00

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