BrightWave Corporation prepared the following contribution format income statement based on a sales volume of 2,000 units (the relevant range of production is 1,000 units to 3,000 units): • • • • Sales: $30,000 Variable expense: $18,000 Contribution margin: $12,000 Fixed expense: $7,000 Net operation income: $5,000 Required: A. What is the contribution margin per unit? B. What is the contribution margin ratio?

BrightWave Corporation prepared the following contribution format income statement based on a sales volume of 2,000 units (the relevant range of production is 1,000 units to 3,000 units): • • • • Sales: $30,000 Variable expense: $18,000 Contribution margin: $12,000 Fixed expense: $7,000 Net operation income: $5,000 Required: A. What is the contribution margin per unit? B. What is the contribution margin ratio?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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A merchandising company has provided the following contribution format incomestatement:Sales (10,000 units) $ 700,000Variable expenses 350,000Contribution margin 350,000Fixed expenses 85,000Net operating income $ 265,000(a) What is the total contribution margin? (b) What is the unit contribution margin? Show your calculations. **Pls help me in clear soultion with accurate answer pls thanks
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Beta Ltd. manufactures a product and has provided the following contribution format income statement: • Sales (6,200 units) = $186,000 • Variable expenses = $99,200 • Contribution margin = $86,800 • Fixed expenses = $67,000 ⚫ Net operating income = $19,800 If Beta Ltd. sells 6,800 units, what is the total contribution margin?