### Business Math: Contribution Margin Analysis for MIX IncorporatedAssume MIX Incorporated has a sales volume of $1,162,000 for two products with May sales and contribution margin ratios as follows:- **Product A**: Sales $454,000; Contribution Margin Ratio 30%- **Product B**: Sales $708,000; Contribution Margin Ratio 60%#### Required:Assume MIX’s fixed expenses are $318,000. Calculate the May total contribution margin, operating income, average contribution margin ratio, and breakeven sales volume.#### Note:- Round "Average contribution margin ratio" to 2 decimal places.- Round up "Breakeven sales volume" to the nearest whole dollar.#### Calculation Table:| Total contribution margin | ||--------------------------------------|--------------------------------------|| Operating income | || Average contribution margin ratio | | %| Breakeven sales volume | |1. **Total Contribution Margin**: - Contribution Margin for Product A: $454,000 * 30% = $136,200 - Contribution Margin for Product B: $708,000 * 60% = $424,800 - **Total Contribution Margin**: $136,200 + $424,800 = $561,0002. **Operating Income**: - **Operating Income**: Total Contribution Margin - Fixed Expenses = $561,000 - $318,000 = $243,0003. **Average Contribution Margin Ratio**: - **Average Contribution Margin Ratio**: Total Contribution Margin / Total Sales = $561,000 / $1,162,000 ≈ 48.28%4. **Breakeven Sales Volume**: - **Breakeven Sales Volume**: Fixed Expenses / Average Contribution Margin Ratio = $318,000 / 48.28% ≈ $658,860. (Rounded to nearest whole dollar)This section provides an educational example of determining financial performance using contribution margin analysis for different products. By understanding and applying these concepts, businesses can better manage their costs and sales strategies.

Total contribution margin = Product A contribution margin + Product B contribution marginAt Break…

Answered: Assume MIX Incorporated has sales…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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The GAAP income statement for Pace Company for the year ended December 31, 2022, shows sales $900,000, cost of goods sold $600,000, and operating expenses $200,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.
Last month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses, and fixed expenses were $164,000, $136,120, and $38,600, 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 17 % %
Skywalker Corporation reported the following on their contribution format income statement: Sales (12,000 units) $175,000 Less: Variable expenses 100,000 Contribution margin 75,000 Less: Fixed expenses 62,500 Net operating income $ 12,500 What is the contribution margin ratio?
Assume the following financial data pertains to a certain single-product lodging business:Room Sales - $400,000Total Variable - $260,000Costs Contribution Margin - $140,000Total Fixed Costs - $ 76,000IBIT - $ 64,000Based on the financial data provided, the contribution margin percentage is __________ percent.
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?
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 18.00 $ 15.00 Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 290,400 158,400 132,000 54,100 $ 77,900 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 7,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Please give me correct answer with explanation..
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 18.00 $ 13.00 Sales (8,600 units) Variable expenses Contribution, margin Fixed expenses Net operating income Total $ 266,600 154,800 111,800 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 56,000 $ 55,800 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 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.7,600 units?
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total variable cost 23,760 Contribution margin $64,240 Total fixed cost 43,800 Operating income $20,440 Required: 1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number. fill in the blank 1 % 2. Calculate the variable cost ratio. Note: Enter as a percent, rounded to the nearest whole number.fill in the blank 2 % 3. Calculate the break-even sales revenue for Ashton. Note: Round your answer to the nearest dollar. $fill in the blank 3 4. How could Ashton increase projected operating income without increasing the total sales revenue? Decrease the contribution margin ratio
Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 300,000 240,000 60,000 59,000 $ 1,000 If sales increase to 6,020 units, the increase in net operating income would be closest to: Multiple Choice ○ $1,000.00 ○ $200.00 ○ $800.00 ○ $3.33
both answer please provide.
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