Chapter 3 Answer

Chapter 3. Cost-Volume-Profit Analysis

3-16 a. $2,000; $300; 75.0% b. $1,500; $1,800; $500; 25.0%

c. $300; $0; $300; 30.0% d. $900; $1,200; $300; $600

3-17 1a. $3,280,000 1b. $1,640,000 2a. $5,740,000 2b. 410,000

3-18 1a. 500 1b. 862 2a. 470 2b. 810 3a. 1,175 3b. 2,025 4a. 940 4b. 1,620

3-19 Orig $200,000 1. $400,000 2. $0 3. $110,000 4. $290,000 5. $360,000

6. $40,000 7. $220,000 8. $510,000.

3-20 1.(a) $100,000 (b) $2,250,000 2. $(100,000) 3. $110,000 4. $190,000

5. 4,950,000 6. 3,680,000

3-21 1. 38 cars 2. 63 cars

3-22 1. $1,020,000 2.(a) 90,000 (b) 120,000 3. $285,600

3-23 2. (a) 252,708 (b) 397,112 3. BE decreases to (a) 213,415 (b) 176,768

3-24 CM% = 60% 2. SP = $40 3. MS = $2,700,000

3-25 1. (a) 34 (b) 0 2. 100 carpets or $50,000; Q>100, Option 1; Q<100, Option 2; 3. Option 1: 1.5; Option 2: 1.0

3-26 1. (a) SI, 60,000 BZ, 48,000 US, 80,000

(b) SI, $15,000,000 BZ, $12,000,000 US, $20,000,000

2. SI, $2,250,000 BZ, $4,725,000 US, ($775,000)

3-27 1. 120,000 2. $12,500,000 3. (a) 150,000 (b) 100,000

3-28 1. 1,000 bagels and 4,000 cups of coffee 2. 5,000 bagels and 20,000 cups of coffee 3. 2,100 cups of coffee, 1,400 bagels, and 700 muffins

3-29 1. 34 concerts 2. 74 concerts 3. 54 concerts

3-30 1. $210,000 2. 35% 3. Incremental OI=$18,500

3-31 1. OI $10,000 2. 40%; BE 7,500 units; BE $75,000 revenues 3. 2,500 units 4. NI $1,400

3-32 1. CS: 350,000; $20,000,000 750,000; $40,000,000

PAS: 350,000; $24,000,000 750,000; $40,000,000

FAS: 350,000; $28,750,000 750,000; $38,750,000

2. CS: $29,500,000; PAS: $31,600,000; FAS: $33,500,000

3-33 1. 400 2. $5,800,000 3. $20

3-34 1. 16 2. 46 3. $50

3-35 1. 2,800 2. OI $665,000 3. 12,500 units or $3,750,000

3-36 1....