5JetStream Manufacturing's contribution format income statement for the most recent month is shown below for 10,000 sales units.What would be the revised net operating income per month if the sales volume increases by 200 units?TotalPer UnitSales$200,000$20.00Variable expenses100,000$10.00Contribution margin100,000$10.00Fixed expensesNet operating income75,000$25,00022Note: Please be sure to adhere to the instructions for numerical responses. If your response reflects negative net operating income (i.e., loss), please include a minus signbefore the number. For instance, if NOI is-$100, kindly enter it as -100.00Type your answer...6Last month when Kaali Manufacturing sold 50,000 units, total sales were $400,000, total variable expenses were $100,000, and fixed expenses were $80,000.What is the company's contribution margin (CM) ratio?Type your answer...

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

Answered: JetStream Manufacturing's contribution…

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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Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 65,000 to 105,000 units is given below: Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 95,000 units during the year at a selling price of $9.36 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Total cost Variable cost Fixed cost Total cost Cost per unit: Variable cost Fixed cost Total cost per unit $ $ $ 65,000 Units Produced and Sold 85,000 214,500 430,000 644,500 $ 0.00 $ 43,000 43,000 $ 0.00 $ 105,000 43,000 43,000 0.00
Help Save & Exit Submit Below is the contribution format income statement for a company based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin $ 55,000 33,000 22,000 14,960 $ 7,040 Fixed expenses Net operating income If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 190 units, what would be the new net operating income? (All answers are whole numbers 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or loss of one thousand.) unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type Net operating income after the changes %24
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The following is Pacific Limited’s contribution format income statement for January 2022: Sales $1,400,000 Variable expenses 700,000 Contribution margin 700,000 Fixed expenses 400,000 Net operating income $ 300,000 The company has no beginning or ending inventories and produced and sold 25,000 units during the month. Required (show your calculation): a. The company’s top management team is currently investigating how many units they need to sell to reach the break-even point. Also, they want to know how much revenue they need to generate to reach the break-even point. What do you think? d.d. Company’s Marketing Manager is confident that she can increase sales by 28% next year with some effort. What would be the expected percentage increase in net operating income? Use the degree of operating leverage concept to compute your answer
Last month when Gifted by Design, Inc. sold 30,000 units, total sales were $600,000, total variable expenses were $300,000 and fixed expenses were $80,000. What is the company's contribution margin ratio? Please express as a number without the % emblem i.e. 15 not 15%
The GAAP income statement for Carla Vista Company for the year ended December 31, 2022,s shows sale $930,000, cost of good sold $555,000, and operating expenses $235,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.
The following monthly data are available for the Phelps Company: Product A Product B $150,000 $130,000 Variable expenses $91,000 $104,000 Contribution margin $59,000 $26,000 Fixed expenses Operating income The break-even sales for the month for the company are: Sales Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $203,000 Product C $90,000 $27,000 $63,000 foonnnn. Total $370,000 $222,000 $148,000 $55,000
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 32.00 19.00 $13.00 Sales (8,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,600 157,700 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 8 $ 107,900 55,200 $ 52,700 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,300 units?
Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (36,000 units) $ 180,000 $ 5.00 Variable expenses 72,000 2.00 Contribution margin 108,000 $ 3.00 Fixed expenses 43,000 Net operating income $ 65,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 17%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 3%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13%?
A manufacturer's contribution margin income statement for the year follows. Prepare a contribution margin income statement if the number of units sold (a) increases by 300 units and (b) decreases by 300 units. Sales ($12 per unit x 10,300 units) $123,600 Variable costs 72,100 Contribution margin 51,500 Fixed costs Income 41,000 $ 10,500 Sales Variable costs Contribution Margin Income Statement For Year Ended December 31 Contribution margin Fixed costs Income 10,600 units sold 10,000 units sold $ 127,200 $ 120,000 $ 41,000 41,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Directions Below is information for Blue Company. Using this information, answer the following questions on the "Calculation" tab in the file. Show your work (how you got your answer) and format appropriately. Blue company has prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 to 1,500 units): Sales $ 20,000 Variable expenses 12,000 Contribution margin 8,000 NOTE: Use the amounts in the original fact pattern to the left as your basis for the questions below. Fixed expenses 6,000 Net operating income $ 2,000 Questions:…

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