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The following is AMR Corporations' contribution format income statement for last month: Sales Variable Expenses Contribution Margin Fixed Expenses Operating Income $800,000 300.000 500,000 400,000
The following is AMR Corporations' contribution format income statement for last month: Sales Variable Expenses Contribution Margin Fixed Expenses Operating Income $800,000 300.000 500,000 400,000 $100.000 The company produced and sold 10,000 units. What is the company's break-even sales in dollars? * O $0 $400,000 O $640,000 $700,000 O None of the above What is the company's margin of safety ratio? * O 10% O 20% 25% O 40% None of the above What is the company's contribution margin ratio? * 37.5% 62.5% 50% 20% O None of the above If sales increase by 200 units, by how much should profits increase? * $16,000 $5,000 O $2,000 $10,000 None of the above Wilson Company prepared the following preliminary budget assuming no advertising expenditures: * Selling price Unit sales Variable expenses Fixed expenses $10 per unit 100,000 $600,000 $300,000 Based on a market study, the company estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10%, if S100,000 were spent on advertising. Assuming that these changes are incorporated in its budget, what should be the budgeted operating income? O $175,000 $190,000 $ 205,000 O $365,000 None of the above * A company has provided the following data: A company has provided the following data: Sales Sales price Variable cost Fixed cost 3,000 units $70 per unit $50 per unit $25,000 If the dollar contribution margin per unit is decreased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, what will the outcome be for operating income? Decrease by $11,000 Decrease by $1,000 Increase by $1,000 Increase by $11,000 None of the above
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