Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marlin Motors sells a single product with a selling price of $490 with variable costs per unit of $196. The company's monthly fixed expenses are

Marlin Motors sells a single product with a selling price of $490 with variable costs per unit of $196. The company's monthly fixed expenses are $52,920.

C. Prepare a contribution margin income statement for the month of November when they will sell 140 units. Use a minus sign for a net loss if present.



Income Statement
Sales $
Variable Costs
Contribution Margin $
Fixed Costs
Net Loss $

D. How many units will Marlin need to sell in order to realize a target profit of $61,740?

New break-even units  

E. What dollar sales will Marlin need to generate in order to realize a target profit of $61,740?

New break-even dollars $

F. Construct a contribution margin income statement for the month of February that reflects $259,700 in sales revenue for Marlin Motors.



Income Statement
Sales $
Variable Costs
Contribution Margin $
Fixed Costs
Net Income $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

C Contribution Margin Income Statement for the month of November Amount Sales 68600 140 units x 490 ... 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

Principles Of Accounting Volume 2 Managerial Accounting

Authors: OpenStax

1st Edition

0357364805, 9780357364802

More Books

Students also viewed these Accounting questions

Question

What is the Antebellum Interregional growth hypothesis?

Answered: 1 week ago

Question

How would you describe the work atmosphere?

Answered: 1 week ago