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Springtown Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (3,000 units) Variable expenses
Springtown Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (3,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $150,000 90.000 60,000 48.000 $ 12,000 REQUIRED: a. What is the contribution margin per unit? b. What is the contribution margin ratio? c. What is the variable expense ratio? d. If sales increase to 3,050 units, what would be the estimated increase in net operating income? e. If sales decline to 2,900 units, what would be the estimated net operating income? If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the estimated erating income? the variable cost per unit increases by $5, spending on advertising increases by $3,000, and unit sales increase by -, what would be the estimated net operating income? What is the contribution marin per init? to what is the contribution margin ratio What is the variable expense ratio d. if sales increase to 3.050 units, what would be the estimated increase in net operating income! e. Il sales decline to 2.900 units, what would be the estimated net operating income? 1. If the selling price increases by 84 per unit and the sales volume decreases by 200 units, what would be the estimated net operating income? If the variable cost per unit increases by 55. spending on advertising increases by $3,000, and unit sales increase by 450 units, what would be the estimated net operating income? h. What is the break-even point in unit sales? 1. What is the break-even point in dollar sales? 1. Estimate how many units must be sold to achieve a target profit of $54.000 k What is the margin of safety in dollars? 1. What is the margin of safety percentage? Mhadithe desinfection2 MacBook Pro
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