Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 (9 points): AIC is a, manufacturing company which manufactures one product, the product has a Variable cost ratio = 60%, and the following

image text in transcribed

Question 2 (9 points): AIC is a, manufacturing company which manufactures one product, the product has a Variable cost ratio = 60%, and the following table presents the Contribution margin income statement for the company. Per unit Total 600,000 $ 72 $ Sales Variable cost CONTRIBUTION MARGIN Fixed cost Net operating income 100,000 $ Solve the following: 1. Selling price per unit (1 point) 2. Contribution margin ratio (1 point) 3. Break-even point in units (2 points) 4. What is the margin of safety in $ ? (1 point) 2 5. Assume the company wants to achieve a profit level of 60,000 $, what is the amount of sales that they must reach to achieve this level of profit (2 points) 6. Assume the company's sales revenue decrease by 5 %, what the effect be on the Net operating income ? (2 points)

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting Volume 2

Authors: Hanlon, Hodder, Nelson, Roulstone, Dragoo

2nd Edition

1618533134, 9781618533357

More Books

Students also viewed these Accounting questions