Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

income statement for a company Sales (7,200 units) total $223,200 per unit $31.00 Variable expenses total 136,800per unit 19.00 Contribution margin total 86,400 per unit

income statement for a company

Sales (7,200 units) total $223,200 per unit $31.00

Variable expenses total 136,800per unit 19.00

Contribution margin total 86,400 per unit $12.00

Fixed expenses total55,600

Net operating income total $30,800

the follow case are independent

1. What would be the revised net operating income per month if the sales volume increases by 40 units?

2. What would be the revised net operating income per month if the sales volume decreases by 40 units?

3. What would be the revised net operating income per month if the sales volume is 6,200 units?

2.

A company basket selling price is $11 per unit, variable expense is $10 per unit, fixed expense is $2,200.

1. Calculate the company's break-even point in unit sales.

2. Calculate the company's break-even point in dollar sales.(Do not round intermediate calculations.)

3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales?In dollar sales?(Do not round intermediate calculations.)

3.

A Company installs home yards. The most recent monthly con format income statement

Amount Percent of Sales

Sales $131,000 100%

Variable expenses 52,400 40%

Contribution margin 78,600 60%

Fixed expenses 19,000

Net operating income $59,600

1. What is the company's degree of operating leverage?(Round your answer to 2 decimal places.)

2. Using the degree of operating leverage, estimate the impact on net operating income of a 20% increase in sales.(Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e 0.1234 should be entered as 12.34)

3. A new contribution format income statement for the company assuming a 20% increase in sales.

4.

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others.

a. Assume that only one product is being sold in each of the four following case situations:

b. Assume that more than one product is being sold in each of the four following case situations:

(For all requirements, Loss amounts should be indicated by a minus sign.)

There are blanks in this data table I need to solve for.

  • Required A
  • Required B

Assume that only one product is being sold in each of the four following case situations:

A.

Case#1 Case #2 Case #3 Case #4

Unit sold 9,900 19,300 4,000

Sales $346,500 $360,000 $132,000

Variable expenses 118,800 270,200

Fixed expenses 96,000 161,000 74,000

Net operating income (loss) $(2,600) $90,700 $(10,000)

Contribution margin per unit $11 $9

B.

Case #1 Case #2 Case #3 Case #4

Sales $446,000 $203,000 $291,000

Variable expenses 140,070 84,390

Fixed expenses 57,000 474,000

Net operating income (loss) $60,400 $120,720 $(21,390)

Contribution margin ratio (percent) 40% % 84% %

5.

A company contribution format income statement for most recent month

Total Per Unit

Sales (32,000 units) $288,000 $9.00

Variable expenses 192,000 6.00

Contribution margin 96,000 $3.00

Fixed expenses 49,000

Net operating income $47,000

case independent

1. What is the revised net operating income if unit sales increase by 20%?

2.What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 17%?

3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 3%?

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 6%?

If you could explain your method of solving that would be great. Thank you!

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

Accounting General Journal

Authors: Claudia Gilbertson

11th Edition

1337623121, 9781337623124

More Books

Students also viewed these Accounting questions

Question

Find the derivative of the function ez g(x)= = 2+6x

Answered: 1 week ago

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago