Determine the new operating income using the following assumptions:Selling Price/unit: $27Variable Cost/unit: 18Unit Sales Volume: 25,000 unitsTotal Sales: $550,000Less: Variable Expenses Variable CGS Starting Materials 10,000 Materials Purchased 165,000 Ending Materials 31,000 Materials Used 144,000 Production Labor 202,000 Electricity--production 35,000 Variable admin expenses Electricity--office 10,000Contribution Margin 159,000Contribution Margin Ratio 0.29Less: Fixed Expenses Factory Supervision 40,000 New Tech 45,000 Fixed admin expenses Rent 25,000 Advertising5,000 Office Labor 25,000 Total 55,000Operating Income 64,000Please show your Excel calculations

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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! Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income Margin of safety in dollars Margin of safety percentage 11. What is the margin of safety in dollars? What is the margin of safety percentage? $ 20 $ 20,000 12,000 % 8,000 6,000 $ 2,000
Manly Beach Enterprises projects the following information for the coming year. Sales Production 1,900 units 2,000 units Selling price per sewing machine Total variable manufacturing cost Total fixed manufacturing cost Marketing and administrative cost (40% variable based on sales) $200 $160,000 $60,000 $80,000 a. Determine the projected net income using absorption costing: $ b. Determine the projected net income using variable costing: $
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If sales are $720,000, variable costs are 58% of sales, and operating income is $68,000, what is the contribution margin? Group of answer choices $302,400 $417,600 42% $234,400
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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.
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Given the cost formula, Y = $16,000+ $3.40x, total cost for an activity level of 4,000 units would be: A. $13,600 OB. $3,600 C. $29,600 O D. $16,000

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Total Sales:			$550,000
Less: Variable Expenses
	Variable CGS
	Starting Materials	10,000
	Materials Purchased	165,000
	Ending Materials	31,000
	Materials Used		144,000
	Production Labor		202,000
	Electricity--production		35,000
	Variable admin expenses
	Electricity--office		10,000
Contribution Margin		159,000
Contribution Margin Ratio		0.29
Less: Fixed Expenses
	Factory Supervision		40,000
	New Tech		45,000
	Fixed admin expenses
	Rent	25,000
	Advertising	5,000
	Office Labor	25,000
	Total		55,000
Operating Income			64,000