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Question 14 The following CVP income statements are available for Oldham Company and Newton Company: Newton Company $390,000 78,000 Sales revenue Variable costs Contribution margin
Question 14 The following CVP income statements are available for Oldham Company and Newton Company: Newton Company $390,000 78,000 Sales revenue Variable costs Contribution margin Fixed costs Oldham Company $390,000 234,000 156,000 106,000 $50,000 312,000 262,000 Operating income $50,000 Assuming that sales revenue increases by 20%, prepare a variable cost income statement for each company. Oldham Company Newton Company Sales 468000 468000 Variable costs 280800 93600 Contribution margin 187200 374400 Less Fixed costs 106000 262000 Operating income 81200 112400 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Assuming that sales revenue decreases by 20%, prepare a variable cost income statement for each company. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Oldham Company Newton Company Sales 312000 312000 Variable costs 187200 62400 Contribution margin 124800 249600 Less : Fixed costs 106000 262000 Operating income 18800 -12400
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