Please solve this question general accounting Blake wood Industries sold 55,000 units last month. The company'sfinancial results for the month were: Total Sales: $440,000 TotalVariable Expenses: $352,000 Fixed Expenses: $62,000Required:1. What is the company's contribution margin (CM) ratio?2. What is the estimated change in net operating income if total salesincrease by $4,000?

Step 1: Introduction to CVP AnalysisCVP analysis, or cost-volume-profit analysis, is a management…

Answered: Blake wood Industries sold 55,000 units…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.
A company sells one product and its contribution margin ratio is 10%. The company provides the following data regarding their operation: Current sales revenue $3,540,000 $3,681,600 Expected sales revenue next year Expected increase in net operating income next year 12% Q. What is the net operating income for the current year? ANS. $
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