Question
Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The companys monthly fixed
Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The companys monthly fixed expense is $32,100.
Calculate the unit sales needed to attain a target profit of $4,750.
Calculate the dollar sales needed to attain a target profit of $9,000
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):
Sales 55000 variable cost 33000 cm 22000 fixed expenice 14960 net income 7040 3. What is the variable expense ratio?
6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 190 units, what would be the net operating income? 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.) 14. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $14,960 and the total fixed expenses are $33,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? 15. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $14,960 and the total fixed expenses are $33,000. Given this scenario and assuming that total sales remain the same. Using the degree of calculated operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? |
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