Current (no automation) 72,000 units Proposed (automation) 107,000 units Per Per Production and sales volume Unit Total Unit Sales revenue Variable costs Direct materials Direct labor $ 95 $ ? $ 95 Total $ ? $ 19 $ 19 25 ? Variable manufacturing overhead Total variable manufacturing 12 12 56 ? costs Contribution margin $ 39 ? $ 44 ? Fixed manufacturing costs $ 1,220,000 $ 2,270,000 Net operating income ? ? Required: 1-a. Complete the following table showing the totals. (Enter your answers in whole dollars, not in millions.) ✓ Answer is complete and correct. Current (no automation) Proposed (automation) 72,000 units 107,000 units Production and Sales Volume Per Unit Total Per Unit Total Sales revenue $ 95 $ 6,840,000 $ 95 $10,165,000 Variable costs Direct materials $ 19 $ 19 Direct labor 25 20 Variable manufacturing overhead 12 12 Total variable manufacturing costs 56 51 Contribution margin $ 39 2,808,000 $ 44 4,708,000 Fixed manufacturing costs $ 1,220,000 $ 2,270,000 Net operating income $ 1,588,000 $ 2,438,000
Current (no automation) 72,000 units Proposed (automation) 107,000 units Per Per Production and sales volume Unit Total Unit Sales revenue Variable costs Direct materials Direct labor $ 95 $ ? $ 95 Total $ ? $ 19 $ 19 25 ? Variable manufacturing overhead Total variable manufacturing 12 12 56 ? costs Contribution margin $ 39 ? $ 44 ? Fixed manufacturing costs $ 1,220,000 $ 2,270,000 Net operating income ? ? Required: 1-a. Complete the following table showing the totals. (Enter your answers in whole dollars, not in millions.) ✓ Answer is complete and correct. Current (no automation) Proposed (automation) 72,000 units 107,000 units Production and Sales Volume Per Unit Total Per Unit Total Sales revenue $ 95 $ 6,840,000 $ 95 $10,165,000 Variable costs Direct materials $ 19 $ 19 Direct labor 25 20 Variable manufacturing overhead 12 12 Total variable manufacturing costs 56 51 Contribution margin $ 39 2,808,000 $ 44 4,708,000 Fixed manufacturing costs $ 1,220,000 $ 2,270,000 Net operating income $ 1,588,000 $ 2,438,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Transcribed Image Text:Current (no
automation)
72,000 units
Proposed
(automation)
107,000 units
Per
Per
Production and sales volume
Unit
Total
Unit
Sales revenue
Variable costs
Direct materials
Direct labor
$ 95
$ ?
$ 95
Total
$ ?
$ 19
$ 19
25
?
Variable manufacturing
overhead
Total variable manufacturing
12
12
56
?
costs
Contribution margin
$ 39
?
$ 44
?
Fixed manufacturing costs
$ 1,220,000
$ 2,270,000
Net operating income
?
?
Required:
1-a. Complete the following table showing the totals. (Enter your answers in whole dollars, not in millions.)
✓ Answer is complete and correct.
Current (no automation)
Proposed (automation)
72,000
units
107,000
units
Production and Sales Volume
Per Unit
Total
Per Unit
Total
Sales revenue
$
95
$ 6,840,000
$
95
$10,165,000
Variable costs
Direct materials
$
19
$
19
Direct labor
25
20
Variable manufacturing overhead
12
12
Total variable manufacturing costs
56
51
Contribution margin
$
39
2,808,000
$
44
4,708,000
Fixed manufacturing costs
$ 1,220,000
$ 2,270,000
Net operating income
$ 1,588,000
$ 2,438,000
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