Exercise 2-4 (Algo) Computing and Using the CM Ratio [LO2-3]Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $297,000, total variable expenses were $240,570, andfixed expenses were $39,500.Required:1. What is the company's contribution margin (CM) ratio?2. What is the estimated change in the company's net operating income if it can increase total sales by $2,100? (Do not roundintermediate calculations.)1. Contribution margin ratioEstimated change in net operating2.income%

Cost volume profit analysis is the technique used by management for decision making. The methods…

Answered: Exercise 2-4 (Algo) Computing and Using…

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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The question 1 point possible Stancil Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $50,000. Determine the company's current) revenue and 2) operating income. (Hint First, find the contribution margin ratio; then prepare the contribution margin income statement) Use the contribution margin income statement and the shortcut contribution margin approaches to determine Stancif's current (1) sales revenue and (2) operating income Begin by computing the contribution margin ratio. (inter the result as a whole number) The contribution margin ratio la Question Viewer Prepare the contribution margin income statement at the calculated sales level. Stancil Drycleaners Contribution Margin Income Statement Submit t
Number 3
Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.25/unit) Gross profit Operating expenses: Selling ($1,200 + $0.10/unit) Administrative ($3,500 + $0.20/unit) Operating income $34,400 22,775 $ 11,625 1,950 5,000 $ 4,675 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to 1. 11,250 units. 2. 3,750 units. d. Refer to your answer to part a for total revenues of $34,400. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase by $14,500. 2. Decrease by $3,000.
PLEASE ANSWER ONLY QUESTIONS F AND G
Question 2 The following monthly data in contribution format are available for the Ross Company and its only product. Product SD: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ $ $ $ $ 381,600 304.800 76,800 34,500 42,300 Per Unit $ 5 159 127 32 The company produced and sold 2,400 units during the month and had no beginning or ending inventories. a) What is the current operating leverage? b) Projections indicate that the market will worsen by 15% next month. What is the projected net operating income given this increase?
QUESTION 3 REQUIRED Study the information provided below and calculate the following independently: 3.4 3.5 The total Marginal Income and Net Profit/Loss, if the selling price is adjusted to R90 per unit and the non-manufacturing fixed costs decrease by R20 000. The number of units that must be sold to earn a net profit of R1 440 000, if the variable costs increase by 10%. INFORMATION Ascot Ltd manufactures shirts. The following information was extracted from the budget for the month ended 28 February 2023: Sales Selling price per unit Direct material cost per unit Direct labour cost per unit Variable manufacturing overhead costs per unit Sales commission Fixed manufacturing overhead costs Fixed selling and administrative costs 50 000 units R100 R30 R18 R7 R5 per unit sold R400 000 R200 000
Question 5A .
aung movie to metast: what are your assumpave. EXERCISE 2-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs L02-1, LO2-4 Miller Company's contribution format income statement for the most recent month is shown below: Required: (Consider each case independently): 3. Sales (20,000 units) Variable expenses. Contribution margin 4. Fixed expenses.. Net operating income. Total $300,000 180,000 120,000 70,000 $ 50,000 EXERCICE Per Unit $15.00 9.00 $ 6.00 38150123 1. What is the revised net operating income if unit sales increase by 15%? 2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%? po besupp BekadW do 1 What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? Cuan and Tardot Profit Analveie 102-3-1024 102-5 102-6 og eint 01 stall What is the…
please answer question F and G

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