Contribution Margin Income StatementSales (15,000 units x $12 per unit)Variable costs (15,000 units x $8 per unit)Contribution margin (15,000 units x $4 per unit)Fixed costsIncome$ 180,000120,00060,00045,000$ 15,0001. The 15,000 units sold and produced increases to 15,500 units and fixed costs increase by $6,700.2. Unit selling price decreases by 5% and units sold and produced increase by 8%. Hint: A unit increase has both a sales and costsimpact.3. Fixed costs increase by $21,700, variable costs per unit decrease by $2, and units sold and produced increase by 400.

Scenario 1:**Change:** Units sold and produced increase from 15,000 to 15,500 units; Fixed costs…

Answered: Contribution Margin Income Statement…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

If fixed costs are $500,000, the unit selling price is $35, and the unit variable costs are $20, what is the break-even sales (units) if fixed costs are reduced by $50,000? 32,667 units 30,000 units 14,000 units 24,500 units
6.Dalian Company provides the following information: Price per unit $20.00 Variable cost per unit $8.00 Fixed costs per month: $15,000 What is the break-even point in terms of units sold? Select one: A.1,875 B.1,250 C.1,200 D.1,150
If fixed costs are $283,000, the unit selling price is $72, and the unit variable costs are $51, what are the old and new break-even sales in units (rounded to a whole number) if the unit selling price increases by $5? a.3,931 units and 13,476 units b.13,476 units and 3,931 units c.5,549 units and 10,385 units d.13,476 units and 10,885 units
If fixed costs are $332,000, the unit selling price is $74, and the unit variable costs are $53, the old and new break-even sales (units), respectively, if the unit selling price increases by $8 are a.15,810 units and 4,486 units b.6,264 units and 10,948 units c.15,810 units and 11,448 units d.4,486 units and 15,810 units
Given breakeven sales in units of 32,000 and a unit contribution margin of $10, how many units must be sold to reach a target operating income of $16,000? 1,600 33,600 30,600 160,000
Sales revenue (1000 units) $20,000 Fixed costs $29,000 Contribution margin ration 60%, what is the variable cost per unit?
Assume the following information: Amount Per Unit Sales $ 600,000 $ 40 Contribution margin $ 360,000 $ 24 Net operating income $ 240,000 If the selling price per unit increases by 8% and unit sales drop by 6%, then the best of estimate of the new net operating income is: Multiple Choice $263,520. $243,520. $253,520. $233,520.
If fixed costs are $1,300,000, the unit selling price is $208, and the unit variable costs are $105, what is the break-even point in sales units if fixed costs are increased by $42,600? a. 13,035 units b. 15,642 units c. 10,428 units d. 19,552 units
Determine the missing amounts. Unit Selling Price 1. 2. 3. $ $500 $250 (e) LA $ LA Unit Variable Costs $200 (c) +A $ Unit Contribution Margin $65 (f) $560 (a) Cc M
If fixed costs are $1,449,000, the unit selling price is $208, and the unit variable costs are $107, what is the break-even point in sales units if fixed costs are increased by $36,600? a. 14,709 units b. 22,063 units c. 11,767 units d. 17,651 units
If fixed costs are $345,000, the unit selling price is $75, and the unit variable costs are $49, what are the old and new break-even sales in units (rounded to a whole number) if the unit selling price increases by $5? a.4,600 units and 13,269 units b.7,041 units and 10,629 units c.13,269 units and 11,129 units d.13,269 units and 4,600 units
If fixed costs are $265,000, the unit selling price is $125, and the unit variable costs are $76, the break-even sales (units) is a.2,120 units b.1,318 units c.3,487 units d.5,408 units

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