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he following is Addison Corporation's contribution format income statement for last month: The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. 1. What is the company's contribution margin ratio? 250% B. 150% C. 70% D. 30% 2. What is the company's break-even in units? 20,000 units B. 0 units C. 18,000 units D. 12,000 units 3. If sales increase by 100 units, by how much should net operating income increase? $400 B. $4,800 C. $1,500 D. $2,500

he following is Addison Corporation's contribution format income statement for last month: The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. 1. What is the company's contribution margin ratio? 250% B. 150% C. 70% D. 30% 2. What is the company's break-even in units? 20,000 units B. 0 units C. 18,000 units D. 12,000 units 3. If sales increase by 100 units, by how much should net operating income increase? $400 B. $4,800 C. $1,500 D. $2,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following is Addison Corporation's contribution format income statement for last month:

The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

1. What is the company's contribution margin ratio?
250%
B. 150%
C. 70%
D. 30%

2. What is the company's break-even in units?
20,000 units
B. 0 units
C. 18,000 units
D. 12,000 units

3. If sales increase by 100 units, by how much should net operating income increase?
$400
B. $4,800
C. $1,500
D. $2,500

 



Sales . Variable expenses Contribution margin Fixed expenses. Net operating income. $1,000,000 700,000 300,000 180,000 $ 120.000
Transcribed Image Text:Sales . Variable expenses Contribution margin Fixed expenses. Net operating income. $1,000,000 700,000 300,000 180,000 $ 120.000
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