Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Newlin Company's contribution format income statement for the recent month is shown below: Sales (9,880 units) Variable expenses Contribution margin Fixed expenses Net operating income

image text in transcribed
image text in transcribed
Newlin Company's contribution format income statement for the recent month is shown below: Sales (9,880 units) Variable expenses Contribution margin Fixed expenses Net operating income Total 279,000 180,000 99,000 55,600 $ 43,480 Per Unit $ 31.00 20.00 $ 11.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month of the sales volume is 8.000 units? 1. Revised net operating income 2 Revised net operating income 3. Revised net operating income Last period Hartig Corporation sold 41000 units, total sales were $309.000, total variable expenses were 5253 380 and fored expenses were $35,600 Required: 1 What is the company's contribution margin (CM) ratio? 2 What is the estimated change in the companys et operating income if it can increase total sales by $1100? (Do not round Intermediate calculations) 1. Contribution marginal 2 Estimated change in net operating income

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

More Books

Students also viewed these Accounting questions