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The following is Arkadia Corporation's contribution format income statement for last
month:
Sales
$1,200,000
Less: variable expenses
800,000
Contribution margin
400,000
Less: fixed expenses
300,000
Operating income
$100,000
The company has no beginning or ending inventories and produced and sold 20,000
units during the month.
Required:
a) What is the company's contribution margin ratio?
b) What is the company's break-even in units?
c) If sales increase by 100 units, by how much should operating income increase?
d) How many units would the company have to sell to attain target operating income
of $125,000?
e) What is the company's margin of safety in dollars?
f) What is the company's degree of operating leverage?
g) If the tax rate is 30%, how many units must be sold to attain an after tax profit of
$84,000?
The following monthly budgeted data are available for the International Company:
Product A
Product B
Product C
Sales
$500,000
$300,000
$900,000
Variable expenses
300,000
210,000
720,000
Contribution margin
$200,000
$90,000
$180,000
Budgeted operating income for the month is $220,000.
Required:
a) Calculate the break-even sales for the month.
b) Calculate the margin of safety.
c) Calculate the degree of operating leverage.
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Related Questions
The following is Snow Corporation's contribution format income statement for last month:
Sales
$1,500,000
Less: variable expenses
800,000
Contribution margin
700,000
Less: fixed expenses
300,000
Operating income
$400,000
The company has no beginning or ending inventories and produced and sold 20,000 units during the month.Required:
What is the company's contribution margin ratio?
What is the company's break-even in units?
How many units would the company have to sell to attain target operating income of $125,000?
What is the company's margin of safety in dollars?
The following is Snow Corporation's contribution format income statement for last month:
Sales
$1,500,000
Less: variable expenses
800,000
Contribution margin
700,000
Less: fixed expenses
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Operating income
$400,000
The company has no beginning or ending inventories and produced and sold 20,000 units during the month.Required:
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Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $289,000, total variable expenses were
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Required:
1. What is the company's contribution margin (CM) ratio?
2. What is the estimated change in the company's net operating income if it can increase total sales by $1,700? (Do not
round intermediate calculations.)
1. Contribution margin ratio
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The following is Alsatia Corporation's contribution format income statement for last month: The company has no beginning or ending inventories and produced and sold 10,000 units during the month.Required:
What is the company's contribution margin ratio?
What is the company's break-even in units?
If sales increase by 100 units, by how much should net operating income increase?
How many units would the company have to sell to attain target profits of $225,000?
What is the company's margin of safety in dollars?
What is the company's degree of operating leverage?
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Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,700 units) $ 246, 400 $ 32.00
Variable expenses 138, 600 18.00 Contribution margin 107,800 $ 14.00 Fixed expenses 54, 500 Net operating income $ 53,300 Required: (Consider each case
independently): What would be the revised net operating income per month if the sales volume increases by 60 units? What would be the revised net operating
income per month if the sales volume decreases by 60 units? What would be the revised net operating income per month if the sales volume is 6, 700 units?
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Dhapa
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Whirly Corporation's contribution format income statement for the most recent month is shown below:
Total
Per Unit
Sales (7,800 units)
Variable expenses
$ 257,400
148,200
$ 33.00
19.00
Contribution margin
109, 200
$ 14.00
Fixed expenses
54,900
Net operating income
$
54,300
Required:
(Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 100 units?
2. What would be the revised net operating income per month if the sales volume decreases by 100 units?
3. What would be the revised net operating income per month if the sales volume is 6,800 units?
1.
Revised net operating income
2. Revised net operating income
3.
Revised net operating income
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Subject: accounting
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Whirly Corporation's contribution format income statement for the most recent month is shown below:
Per Unit
$31.00
19.00
$ 12.00
Sales (8,900 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Required:
(Consider each case independently):
Total
$ 275,900
169,100
106,800
54,200
$ 52,600
1. What would be the revised net operating income per month if the sales volume increases by 100 units?
2. What would be the revised net operating income per month if the sales volume decreases by 100 units?
3. What would be the revised net operating income per month if the sales volume is 7,900 units?
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
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Last month the Blank Inc. had sales of 5,000 units sold for P40 each. The total variable expenses were P120,000, and fixed costs were P65,000.
Required:
a. What is the company’s contribution margin (CM) ratio?
b. Estimate the change in the company’s net operating income if it were to increase its total sales by P8,000.
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Whirly Corporation's contribution format income statement for the most
recent month is shown below:
Sales (7,800 units)
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Total
$ 265,200
148, 200
117,000
55,700
$ 61,300
Required:
(Consider each case independently):
Per Unit
$ 34.00
19.00
$15.00
1. What would be the revised net operating income per month if the sales
volume increases by 90 units?
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
2. What would be the revised net operating income per month if the
sales volume decreases by 90 units?
3. What would be the revised net operating income per month if the
sales volume is 6,800 units?
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Whirly Corporation's contribution format income statement for the most recent month is shown below:
Sales (7,400 units)
Contribution margin
Total
Variable expenses
$ 229,400
140,600
88,800
Per Unit
$ 31.00
19.00
$ 12.00
Fixed expenses
55,700
Net operating income
$ 33,100
Required:
(Consider each case independently):
1. What would be the revised net operating income per month if the sales volume increases by 60 units?
2. What would be the revised net operating income per month if the sales volume decreases by 60 units?
3. What would be the revised net operating income per month if the sales volume is 6,400 units?
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
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Menlo Company distributes a single product. The company’s sales and expenses for last month follow:
Total
Sales P450,000
Variable expenses 180,000
Contribution margin 270,000
Fixed expenses 216,000
Net operating income P 54,000
Units sold is 15,000 units
Required:
a. What is the break-even point in units sold and in sales dollars?
b. Without resorting to computations, what is the total contribution margin at the break-even point?
c. How many units would have to be sold each month to earn a target profit of P90,000? Verify your answer by preparing a contribution format income statement at the target sales level.
d. Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms.
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Whirly Corporation's contribution format income statement for the most recent month is shown be
Total
$ 254, 200
147,600
Per Unit
Sales (8,200 units)
Variable expenses
$ 31.00
18.00
Contribution margin
106,600
$ 13.00
Fixed expenses
54,200
Net operating income
$ 52,400
Required:
(Consider each case independently):
1. What would be the revised
2. What would be the revised net operating income per month if the sales volume decreases by 60 units?
3. What would be the revised net operating income per month if the sales volume is 7,200 units?
operating income per month if the sales volume increases by 60 units?
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
Pr
[O
ere to search
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Last month when Holiday Creations, Inc., sold 37,000 units, total sales were $148,000,
total variable expenses were $105,080, and fixed expenses were $37,300.
Required:
1. What is the company's contribution margin (CM) ratio?
2. What is the estimated change in the company's net operating income if it can
increase sales volume by 300 units and total sales by $1,200? (Do not round
intermediate calculations.)
1. Contribution margin ratio
2. Estimated change in net operating income
%
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Whirly Corporation's contribution format income statement for the most recent month is shown below:
Sales (7,700 units)
Variable expenses
Total
$ 254,100
146,300
107,800
Per Unit
$ 33.00
19.00
$ 14.00
Contribution margin
Fixed expenses
Net operating income
Required:
(Consider each case independently):
55,900
$ 51,900
1. What would be the revised net operating income per month if the sales volume increases by 80 units?
2. What would be the revised net operating income per month if the sales volume decreases by 80 units?
3. What would be the revised net operating income per month if the sales volume is 6,700 units?
1. Revised net operating income
2. Revised net operating income
3. Revised net operating income
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$122,640, and $35,200, respectively.
Required:
1. What is the company's contribution margin (CM) ratio?
2. What is the company's variable expense ratio?
Note: Do not round intermediate calculations.
1. Contribution margin ratio
2. Variable expense ratio
%
%
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