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Barnes Company reports the following operating results for the month of August. Price Per Units Unit a. Sales Revenue Variable Costs Contribution Margin Fixed
Barnes Company reports the following operating results for the month of August. Price Per Units Unit a. Sales Revenue Variable Costs Contribution Margin Fixed Costs Net Income $ 325,000 $ 65.00 5000 210,000 $ 115,000 75,000 $ 40,000 Calculate the new net income if the price per unit increases by 10% with no change in total variable costs or sales volume. b. Calculate Operating Leverage with the original information C. Calculate Contribution Margin Ratio NOTE: Enter a formula, a cell reference, or a value into the yellow shaded input cells. a. Current selling price New selling price Total sales Less: variable costs Contribution margin Less: fixed costs Net income b. Operating Leverage C. Contribution Margin Ratio
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