CHAPTER 8

E8-23 3. Break-even point (in sales dollars): $45000

E8-24 Break-Even Sales ubits -8000, Contn margin 0.5, BERevenue:
$80000, 4- 21000
E8-25 4000, 4400, 1000000, 8000, no price cut to be made
E8-26 2. 4 games to break even
E8-27 160000, 4 $

E8-28 1. (b) Contribution income statement: Net income: $200,000

2. Operating leverage factor (at $1,000,000 sales level): 4.35,
43.5%
E8-29 200, 150, 25%, 75%, 162.5, 400, sales 140000

E8-31 3. 30,000Operating leverage factor 4, 80%

E8-32 30000 profit, loss 225000
E8-33 600000, 80000, 1 million, , no effect
P8-34 NI 200000, 280000, 12.8 million, 20$, 25%

P8-35 630000, 54000 units, 700000, 21.33

P8-36 22000 ubnits, 4399 is more profitable, 45000, 40000

P8-37 46000 units, 32000, fall by 360000, fall by 11.25, inc, no change,
inc, no change
P8-38 Yes. Plan A sales are expected to total 65,000 units, Yes.
Commissions will total $535,600
P8-39 A-1000, B -2200, Operating Leverage 1.2, 1.58, 88000, 84000 NI

P8-40 Profit inc by 40%

P8-41 2250000, 140000 units, BEP 97500, , 25.51
P8-42 BEP 4000000, OLF – 2, 10 million sales
P8-45 210000, 175000 units, 311111
P8-46 25000, 27500, 40816 tubs, 37500

P8-49 Decrease 10800, loss 1400, loss 1200.

P8-50 360000 NI, 40625,40625,81250, 40000,40000, 120000

C8-62 1. Contribution margin per patient-day: $200, 16900 patient days

2. Dec in NI 606660

CHAPTER 14

E14-29 Benefit $ 700

E14-30 7500 vs. 8100 befit of 600$
E14-31 Contn of 6500
E14-35 Relevant cost 10300 p
E14-36 9100 irrelevant, 11000 relevant
E14-37 45000 IR, 60000 R
E14-38 8000 jars
E14-39 Uno more profitable
E14-40 Objective function: Maximize 3X + 12Y, X/24 + Y/4 <= 10000
E14-41 2. Objective function: Maximize 8X + 14Y
E14-42 Blenders more profitable, 20000 B, 15000 M make, / 25000
Mixers make rest buy
E14-43 Net Cont to profit 34050, not adequate reqd 5500 hrs
P14-44 158, 200, Basic to be focused

P14-45 No, loss of 12800, Sunk cost

P14-46 Pro model, 2- Home model

P14-47 Analysis wrong reco correct – 68 vs 72 $

P14-49
Wrong decision 20000 loss