Evergreen Decorations, Inc. sold 40,000 units last month. The financial details are as follows: Particulars Total Sales Revenue Value $350,000 Total Variable Expenses $250,000 Fixed Expenses $45,000 What is the company's Contribution Margin (CM) Ratio?
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- What is the company's contribution margin ratio of this financial accounting question?Last month when Holiday Creations, Incorporated, sold 41.000 units, total sales were $164,000, total variable expenses were $136,120, and fixed expenses were $37,000. Required: 1. What is the company's contribution margin (CM) ratio?EXERCISE: Computing and Using the CM Ratio,Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000.Required:1. What is the company’s contribution margin (CM) ratio?2. Estimate the change in the company’s net operating income if it were to
- How much should net operating income increase on these financial accounting question?What is the company's contribution margin ratio ?Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.
- DhapaThe following is Specter Corporation's contribution format income statement for last month:Sales $1,200,000Less variable expenses 800,000Contribution margin 400,000Less fixed expenses 300,000Net income $100,000The company has no beginning or ending inventories and produced and sold 20,000 units duringthe month.Required:a. What is the company's contribution margin ratio? b. What is the company's break-even in units? c. If sales increase by 100 units, by how much should net income increase?What is the contribution margin of this financial accounting question?
- Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,200 148, 200 117,000 55,700 $ 61,300 Required: (Consider each case independently): Per Unit $ 34.00 19.00 $15.00 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 6,800 units?Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 19.00 $ 12.00 Sales (8,900 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 275,900 169,100 106,800 54,200 $ 52,600 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 7,900 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating incomeWhirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000 units) $ 240,000 $ 30.00 Variable expenses 152,000 19.00 Contribution margin 88,000 $ 11.00 Fixed expenses 55,000 Net operating income $ 33,000 Can you please help me solve for the following: A. What would be the revised net operating income per month if the sales volume increases by 60 units? B. What would be the revised net operating income per month if the sales volume decreases by 60 units? C. What would be the revised net operating income per month if the sales volume is 7,000 units?