Question
Beckius Industries is a manufacturing company that has provided you with the following information for the year ending December 31, 2022: Number of units sold
Beckius Industries is a manufacturing company that has provided you with the following information for the year ending December 31, 2022:
Number of units sold 25,000 units Selling price per unit $40 per unit Cash $100,000 Total COGS $337,500 Total Fixed Insurance Expense $34,000 Total Fixed Sales Salaries $40,000 Total fixed administrative expense $280,000 Property, Plant & Equipment, net $600,000 Common Stock $50,000
Part A: Prepare a contribution format income statement.
Part B: Calculate the following: 1. Magnitude of operating leverage (round to three decimal places) 2. Percent change in net income if sales increase by 15% 3. If sales increase by 15%, what is net operating income (use the magnitude of operating leverage to calculate). 4. If sales decrease by 15%, what is net operating income.
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