Toussant Company sells 20,000 units at $120 per unit. Variable costs are $90 per unit, and fixed

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Toussant Company sells 20,000 units at $120 per unit. Variable costs are $90 per unit, and fixed costs are $250,000.

a. Prepare an income statement for Toussant in contribution margin format.

b. Determine Toussant’s (1) contribution margin ratio and (2) unit contribution margin.

c. How much would operating income change if Toussant’s sales increased by 3,000 units?

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Financial And Managerial Accounting

ISBN: 9781337902663

15th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William B. Tayler

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Question Posted: Feb 07, 2024 06:31 AM

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Toussant Company sells 20,000 units at $120 per unit. Variable costs are $90 per unit, and fixed

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a Sales Variable costs Contribution margin Fixed costs Operating income b 1 Contribution Margin Rati...View the full answer

Financial And Managerial Accounting

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