Acc

ACC203

Ch 3

34.

a) 3000 units = 210000/70

b) 5000 units = (210000 + 140000)/70

36. Lowes Convenience Hy Market

Amount Percentage Amount Percentage

Sales $500000 100 $500000 100

Variable

Cost $ 325000 65 $ 75000 15

Contribution

Margin $175000 35 $425000 85

Fixed cost $ 30000 6 $280000 56

Operating

Income $195000 29 $145000 29

B) Lowes convenience profits will only increase about 1% with a 15% increase in sales and Hy's Market profit will increase by 7%

38. Status Quo Alternative Difference

sales revenue $60000 $60900 $900

variable costs $35000 $35700 $700

contribution margin $25000 $25200 $200

fixed costs $20000 $20000 0

operating income $5000 $5200 $200

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