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Accounting, thanks in advance Information: Number of Units Produced Number of units Sold 4100 4100 Cost of Goods Sold Detail: Direct materials Direct Labor Manufacturing
Accounting, thanks in advance
Information: Number of Units Produced Number of units Sold 4100 4100 Cost of Goods Sold Detail: Direct materials Direct Labor Manufacturing Overhead: Rent on Factory Building Depreciation on Equipment $39 per unit $28 per unit Revenue per unit $150 per unit $32,000 total $24,000 total Other Expenses Detail: Salaries for Administrative Staff Rent of Office Space Depreciation of Office Equipment Commission for sales staff $51,000 total $20,000 total $12,500 total $10 per unit A) Traditional Absorption Costing Income Statement Income Statement (GAAP Format) Sales Revenue Cost of Goods Sold Gross Margin Operating Expenses Net Income B) Contribution Margin Income Statement (Income Statement using Variable Costing) Income Statement Contribution Margin Format Sales Revenue Variable Costs Contribution Margin Fixed Costs Net Income MU Degree or Magnitude of Operating Leverage 1c) Using a formula to answer this question, determine the company's NET INCOME if the number of units produced and sold increases by 15% Net Income at 15% higher level of prod/sales C) Calculate the following using formulas: Total variable costs per unit Total fixed costs Contribution Margin per unit Breakeven point in units Breakeven point in sales dollars Margin of Safety in units Margin of Safety in dollars Margin of Safety as percent of current sales # of units that must be sold to earn $300,000 The minimum selling price per unit that must be set to earn $175,000 Step by Step Solution
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