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    Chapter 16 - The Behavior of Costs: Problem 16-1

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    gusneri
    This document contains sample problems from a chapter on cost behavior. It includes examples of different types of cost graphs and calculations to determine a company's break-even point, sales price needed to maintain contribution margin with increased variable costs, and sales volume needed to maintain net income with increased variable costs.

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    Chapter 16 - The Behavior of Costs: Problem 16-1

    Uploaded by

    gusneri
    10 views1 page
    This document contains sample problems from a chapter on cost behavior. It includes examples of different types of cost graphs and calculations to determine a company's break-even point, sales price needed to maintain contribution margin with increased variable costs, and sales volume needed to maintain net income with increased variable costs.

    Original Description:

    cost behavior

    Original Title

    Cost Behave

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    This document contains sample problems from a chapter on cost behavior. It includes examples of different types of cost graphs and calculations to determine a company's break-even point, sales price needed to maintain contribution margin with increased variable costs, and sales volume needed to maintain net income with increased variable costs.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Chapter 16 - The Behavior of Costs: Problem 16-1

    Uploaded by

    gusneri
    This document contains sample problems from a chapter on cost behavior. It includes examples of different types of cost graphs and calculations to determine a company's break-even point, sales price needed to maintain contribution margin with increased variable costs, and sales volume needed to maintain net income with increased variable costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Chapter 16 The Behavior of Costs

    Problem 16-1
    A. Title each graph to show the type of cost it describes
    a. Fixed Costs
    b. Variable Costs
    c. Semi variable Costs
    d. Step-Function Costs
    B. From the list of costs, select those that each graph describes
    a. Variable Costs
    b. Fixed Costs
    c. Semi variable Costs
    d. Step-Functional Costs
    Problem 16-2
    A. What is Doyles Candy Companys break-even point in boxes of candy
    fot the current year?
    Xn
    = TFC
    UP-UVC
    = 1,056,000
    9.60 5.76
    = 275,000 boxes
    B. What selling price per box must Doyles Candy Company charge to
    cover the 15% increase in variable production costs of candy and still
    maintain the current contribution margin percentage
    ASP = 9.6 + 15% (1.44)
    = 11.04 per box
    C. What volume of sales in dollars must Doyles Candy Company achieve
    in the coming year to maintain the same net income after taxes as
    projected for the current year if the selling price of candy remains at
    $9.60 per box and the variable production costs of candy increase
    15%.?
    ASV = SP x 15%
    = 330,000 X 11.04
    = $ 4,305,600.00

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