ExhibitThe budgeted total volume of 250,000 units s based upon Xerbert's aching a market share of 10%. Actual industry volume was 2.580.000 units. Xerbert's increased volume owing to improved market share is
Answer(s): C
Based on the revised industry volume. Herbert should have sold 258,000 units (2.580,000 x 10%). Because 260,000 were actually sold, the company increased its market share by 2,000, or 20% of the 10,000 (260,000 -- 250,000) increase.
ExhibitThe variance of actual contribution margin from budgeted contribution margin attributable to sales price is?
Answer(s): D
The budgeted prices of Xenox and Xeon were $6 and $10 per unit, respective. Actual sales in units multiplied by the budgeted prices equals total sales of $2,080,000, Because actual sales were on, p $2.0 15,000. the variance of $65,000 is unfavorable (lower sales than budgeted).
ExhibitThe variance of actual contribution margin from budgeted contribution attributable to unit variable cost changes is?
The proper procedure is to calculate variable costs by multiplying actual units sold by the budgeted costs per unit. The budgeted costs of Xenox and Xeon were $3 and $7 50, respectively the actual costs (130 x $3 = $390 and 130 x $750 = $975) were identical to budgeted variable costs at the actual volume. Thus, the variance was zero
Oradell Company sells is single product at a price of $60 per unit and incurs the following variable costs per unit of productOradell's annual fixed costs are $880,000, and Oradell is subject toe 30% income tax rate .A production and sales volume of 4.000 units of product per month would result in an annual after-tax income (loss) Oradell Comp of?
The income statement for a volume of 48.000 units (4.000 per month x 12 months) would I appear' as follows:
Oradell Company sells its single product at a price of $60 per unit and incurs the following variable costs per unit of productOradell's annual fixed costs are $880.000, and Oradell is subject to a 30% income tax rate. The number of units of product that Oradell Company must sell annual' to break even is?
Answer(s): B
The breakeven point in units equals fixed costs divided by the contribution margin per unit at a selling price of $60 per unit and with variable costs of $40 per unit, the unit contribution margin is $20. Thus, the breakeven point is 44,000 units ($880,000 $20).
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