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Someone please help me! I have all of the question correct expect for the last part! What am I doing wrong?? Kathleen Sebilus Inc. contribution
Someone please help me! I have all of the question correct expect for the last part! What am I doing wrong??
Kathleen Sebilus Inc. contribution format income statement for the most recent month is given below Sales (41,000 units) $1,148,000 Variable expenses 803,600 344,400 Contribution margin Fixed expenses 275,520 Net operating income 68,880 The industry in which Kathleen Sebilus Inc. operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits. Required: 1. New equipment has come on the market that would allow Kathleen Sebilus Inc. to automate a portion of its operations. Variable expenses would be reduced by $8.40 per unit. However, fixed expenses would increase to a total of $619,920 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. (Input all amounts as positive values except losses which should be indicated by minus sign. Round your "Per unit'" answers to 2 decimal places. Omit the "s" and signs in your response.) Present Proposed Amount Per Unit Amount Per Uni 1,148,000 28 100 1,148,000 o s 28 O 100 o Sales Variable expenses 70 O 11.20 803,600 19.600 O 459,200 O 40 O Contribution margin 344,400 8.40 30 688,800 16.800 O 60 Fixed expenses 275,520 619,920 O Net operating income (loss) V 68,880 68,880Step by Step Solution
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