gnment i ces Saved Current operating income for Bay Area Cycles Company is $22,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $88,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $65,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Fixed expense Operating income Per Unit Volume $ 100.00 Total Ratio 100 % % 25 % $ (88,000) 22,000 Required 1 Required 2 > H
gnment i ces Saved Current operating income for Bay Area Cycles Company is $22,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $88,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $65,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Fixed expense Operating income Per Unit Volume $ 100.00 Total Ratio 100 % % 25 % $ (88,000) 22,000 Required 1 Required 2 > H
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:gnment i
ces
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Current operating income for Bay Area Cycles Company is $22,000. Selling price per unit is $100, the contribution margin ratio is 25%,
and fixed expense is $88,000.
Required:
1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold?
2. How many additional unit sales would be necessary to achieve operating income of $65,000?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold?
Revenue
Variable expense
Contribution margin
Fixed expense
Operating income
Per Unit
Volume
$
100.00
Total
Ratio
100 %
%
25 %
$
(88,000)
22,000
Required 1
Required 2 >
H
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