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% per unit $ Units sold Sales $ 20,000.00 100% $ 20.00 1000 Variable expenses $ 12,000.00 60% $ 12.00 Contribution Margin $ 8,000.00 40%
% | per unit $ | Units sold | |||||
Sales | $ 20,000.00 | 100% | $ 20.00 | 1000 | |||
Variable expenses | $ 12,000.00 | 60% | $ 12.00 | ||||
Contribution Margin | $ 8,000.00 | 40% | $ 8.00 | ||||
Fixed Expenses | $ 6,000.00 | ||||||
Net operating income | $ 2,000.00 | ||||||
1. What is the contribution margin per unit? | |||||||
2. What is the contribution margin ratio? | |||||||
1. | Total contribution margin | 3. What is the variable expense ratio? | |||||
Total units sold | units | 4. If sales increase to 1,001 units, what would be the increase in net operating income? | |||||
Contribution margin per unit | per unit | 5. If sales decline to 900 units, what would be the net operating income? | |||||
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? | |||||||
7. If the variable cost per unit increases by $ 1, spending on advertising increases by $ 1,500, and unit sales increase by 250 units, what would be the net operating income? | |||||||
2. | Total contribution margin | 8. What is the break- even point in unit sales? | |||||
Total sales | 9. What is the break- even point in dollar sales? | ||||||
Contribution margin ratio | 10. How many units must be sold to achieve a target profit of $ 5,000? | ||||||
11. What is the margin of safety in dollars? What is the margin of safety percentage? | |||||||
12. What is the degree of operating leverage? | |||||||
3 | Total variable expenses | 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? | |||||
Total sales | 14. Assume that the amounts of the company |
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