Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. The following is Robin Corporation's contribution format income statement for the last month: Sales Variable expenses $1,500,000 $500,000 Contribution margin $1,000,000 Fixed expenses

image text in transcribed

4. The following is Robin Corporation's contribution format income statement for the last month: Sales Variable expenses $1,500,000 $500,000 Contribution margin $1,000,000 Fixed expenses $600,000 Net operating income $400,000 The company has no beginning or ending inventories and produced and sold 50,000 units during the month. Required: A. What is the company's contribution margin ratio? B. What is the company's break even in units? C. If sales increased by 1000 units, by how much should net operating income increase? D. How many units would the company have to sell to attain target profits of $500,000? E. What is the company's margin of safety in dollars? F. What is the company's degree of operating leverage?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: James Jiambalvo

4th edition

9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797

More Books

Students also viewed these Accounting questions

Question

Let x represent the volume of blood drawn for a blood test.

Answered: 1 week ago