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Author Question: The Olson Company has a predicted operating income of $100,000. Their total variable expenses are ... (Read 300 times)

rayancarla1

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on: Jan 5, 2020
The Olson Company has a predicted operating income of $100,000.  Their total variable expenses are $36,000 and their total fixed expenses are $24,000.  They have a unit contribution margin of $10.


 Olson's break-even in sales units is
◦ 16,000.
◦ 2,400.
◦ 8,800.
◦ 7,600.
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cloud

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Reply #1 on: Jan 5, 2020
2,400.


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cnetterville

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Reply #2 on: Jan 5, 2020
The Olson Company has a predicted operating income of $100,000.  Their total variable expenses are $36,000 and their total fixed expenses are $24,000.  They have a unit contribution margin of $10.


If the Olson Company fixed expenses increase to $40,000 then their break-even in sales units will be
◦ 6,000.
◦ 4,000.
◦ 10,400.
◦ 17,600.


ApricotDream

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Reply #3 on: Jan 5, 2020
4,000.


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