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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Contribution Margin Ferrante Company sells 25,000 units at $44 per unit. Variable costs are $27.72 per unit, and fixed costs are $236,100. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) per unit c. Income from operations
Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 111,000 Net operating income $ 69,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $77,400. $82,200. $153,200. $88,500.
Contribution Margin Harry Company sells 30,000 units at $12 per unit. Variable costs are $9.72 per unit, and fixed costs are $39,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations
Sales (22,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 199,800 119,880 79,920 46, 620 $ 33,300 Per Unit $9.00 5.40 $ 3.60 Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 3,330 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 23%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 7%?…
Target profit Beard Company sells a product for $15 per unit. The variable cost is $10 per unit, and fixed costs are $1,750,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $400,000.
Contribution Margin Willie Company sells 39,000 units at $33 per unit. Variable costs are $22.11 per unit, and fixed costs are $191,100. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) fill in the blank ? %b. Unit contribution margin (Round to the nearest cent.) $ fill in the blank ? per unitc. Operating income $ fill in the blank ?
Har
Sales revenue (1000 units) $20,000 Fixed costs $29,000 Contribution margin ration 60%, what is the variable cost per unit?
Contribution Margin Sally Company sells 36,000 units at $11 per unit. Variable costs are $7.70 per unit, and fixed costs are $44,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) per unit c. Income from operations
Contribution margin Amon Company sells 180,000 units at $185 per unit. Variable costs are $111 per unit, and fixed costs are $8,175,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio b. Unit contribution margin $ c. Operating income LA % per unit
Contribution Margin Molly Company sells 32,000 units at $39 per unit. Variable costs are $29.25 per unit, and fixed costs are $174,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) b. Unit contribution margin (Round to the nearest cent.) $4 per unit c. Operating income

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