Hello, I have the following question. Shown here is an income statement in the traditional format for a firm with a sales volume of 15,500 units. Revenues $170,500 Cost of Goods sold ($10,000 + $2.75/unit) 52,625 Gross Profit $117,875 Operating expenses Selling ($2,450 + $1.15/unit) 20,275 Administration ($5,000 + $0.45/unit) 11,975 Operating Income $85,625 Question D1: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues increase by $13,000. Do not round intermediate calculations. Question D2: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues decrease by $10,000. Do not round intermediate calculations.
Hello, I have the following question. Shown here is an income statement in the traditional format for a firm with a sales volume of 15,500 units. Revenues $170,500 Cost of Goods sold ($10,000 + $2.75/unit) 52,625 Gross Profit $117,875 Operating expenses Selling ($2,450 + $1.15/unit) 20,275 Administration ($5,000 + $0.45/unit) 11,975 Operating Income $85,625 Question D1: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues increase by $13,000. Do not round intermediate calculations. Question D2: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues decrease by $10,000. Do not round intermediate calculations.
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...
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Hello,
I have the following question.
Shown here is an income statement in the traditional format for a firm with a sales volume of 15,500 units.
Revenues | $170,500 | |
Cost of Goods sold ($10,000 + $2.75/unit) | 52,625 | |
Gross Profit |
$117,875 |
|
Operating expenses | ||
Selling ($2,450 + $1.15/unit) | 20,275 | |
Administration ($5,000 + $0.45/unit) | 11,975 | |
Operating Income | $85,625 |
Question D1: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues increase by $13,000. Do not round intermediate calculations.
Question D2: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues decrease by $10,000. Do not round intermediate calculations.
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