500,000 400,000 Less: cost of goods sold 125,000 250,000 200,000 Gross margin 125,000 250,000 200,000 Operating expenses: Advertising 5,000 5,000 5,000 Salaries & Commissions 72,500 85,000 80,000 Depreciation expense 10,000 10,000 10,000 Utilities expense 12,000 17,000 15,000 Total operating expenses 99,500 117,000 110,000 Net Income 25,500 133,000 90,000 a- Assume the company plans to sell 900 units next month, prepare a contribution margin income statement. b- For each of the mixed costs: Salaries & Commissions and Utilities, separate them out into their variable and fixed components using the high-low method. State the cost equation for each mixed cost.
Q2 mot meent yer is pien bekse: Management is anvious to inpooc the compeny's prode performanet and has ahtod for an utalyis of a auenber de items. Required: 1. Compue the compan's CM rato and varatle apeste nitio 2. Compute the conpay's breakeren point is boch units and saks dellars. tis the oquatioa nethod 4. Refer bo the urigial data Asuee that net year menaeement wans the conpayy to ean a mitimum profi of $90000 How mas uniss will bre to be sold we mect tha taged pooft fesure? int axd perthage tases. c. Woid you naminned that the chargs te mode? Q2 mou revent year is gien beks: Managensent is anviois to inpowe the company's prode perforanse a and has asted for an aralyis of a aumber ditems. Requilred: 1. Corpoute the compary's CM rto and varuble elpetie ratio 2. Compute the compas's breakeren point in both units and sales dollans. Tie the equation nictiod. 1. Assene thas gales increase by $400000 aet year. If cod bohavour patterns remain unchanged. by how mudh wil the oampany's nat openting inoome insreac? Uee the CM nto bo determine jour anverer. 4. Refer to the onicinal data Asuee that net year managenent wants the conpary to eazn a mitimam profe of Soocon How mass enis will hre to be sold wo thect this argat proit fogret? 5. Race ta the original data. Congute the compent's mapin of afefy in both dellar and pevertepe tenns. 6. 2. Cooput he compury destec of operating lectag a the prestat ked d sa a c. Verify yocr inswer to put (b) ty preparing a new iscone stetenat theing at po incease in sales. I La at efloct wincrese sales and poofis, matagemeat 5 cunidering the use of a tigharqaily anlatta. The highervality antenna ant-and perichtage bases. Wocld you mocmnend that the chasges be madc? Q2 mot meent yer is pien bekse: Management is anvious to inpooc the compeny's prode performanet and has ahtod for an utalyis of a auenber de items. Required: 1. Compue the compan's CM rato and varatle apeste nitio 2. Compute the conpay's breakeren point is boch units and saks dellars. tis the oquatioa nethod 4. Refer bo the urigial data Asuee that net year menaeement wans the conpayy to ean a mitimum profi of $90000 How mas uniss will bre to be sold we mect tha taged pooft fesure? int axd perthage tases. c. Woid you naminned that the chargs te mode? Q2 mou revent year is gien beks: Managensent is anviois to inpowe the company's prode perforanse a and has asted for an aralyis of a aumber ditems. Requilred: 1. Corpoute the compary's CM rto and varuble elpetie ratio 2. Compute the compas's breakeren point in both units and sales dollans. Tie the equation nictiod. 1. Assene thas gales increase by $400000 aet year. If cod bohavour patterns remain unchanged. by how mudh wil the oampany's nat openting inoome insreac? Uee the CM nto bo determine jour anverer. 4. Refer to the onicinal data Asuee that net year managenent wants the conpary to eazn a mitimam profe of Soocon How mass enis will hre to be sold wo thect this argat proit fogret? 5. Race ta the original data. Congute the compent's mapin of afefy in both dellar and pevertepe tenns. 6. 2. Cooput he compury destec of operating lectag a the prestat ked d sa a c. Verify yocr inswer to put (b) ty preparing a new iscone stetenat theing at po incease in sales. I La at efloct wincrese sales and poofis, matagemeat 5 cunidering the use of a tigharqaily anlatta. The highervality antenna ant-and perichtage bases. Wocld you mocmnend that the chasges be madc
