Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total variable expenses were $110,960, and fixed expenses were $35,100 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 sales volume by 625 units and total sales by $2,500? (Do not round intermediate calculations.) 1. Contribution margin ratio 2 Estimated change in net operating income
Q: Last month when Oriental Creations, Incorporated, sold 36,000 units, total sales were $144,000,…
A: Cost volume profit analysis is the technique used by management for decision making. The methods…
Q: of 2
A: The net operating income will decrease by $100 per month.Explanation:Data for Hermann…
Q: Heaving trouble with the following question. It's 2 parts. Question/information attahced. 5. Refer…
A: 5a. Compute new contribution margin ratio and new break-even point in unit sales and dollar sales as…
Q: Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total…
A: units sold = 37,000 units Total sales = $148,000Variable cost = $115,440Fixed cost = $36,500
Q: Required information [The following information applies to the questions displayed below.] Data for…
A: Net operating income, or NOI for short, is a metric used to determine the profitability of a…
Q: Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total…
A: The contribution margin ratio is a percentage that represents how much of each sales dollar…
Q: Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total…
A: For Part (1)Contribution margin ratio = (sales revenue - variable Cost) / sales revenue * 100 For…
Q: ixed expenses were $36,900. Required: 1. What is the company's contribution margin (CM) ratio? 2.…
A: Contribution Margin Ratio is percentage difference between corporate revenues and variable costs.…
Q: The CVP income statement for Jen Company for 2022 appears below: Jen COMPANY CVP Income Statement…
A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…
Q: Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total…
A: Net operating income is the amount of money earned by the entity after deducting the operating…
Q: Required information [The following information applies to the questions displayed below.] Data for…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: th when Holiday Creations, Incorporated, sold 36,000 units, total sales were $144,000, total…
A: Contribution Margin: It is the aggregate amount of revenue that is available after total expenses…
Q: Khaling Company sold 27,150 units last year at $15.60 each. Variable cost was $11.40, and total…
A: Preparation of Income Statement
Q: Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total…
A: Lets understand the basics.Contribution margin ratio is a ratio which shows contribution as a…
Q: Publix sold 1,000 units last month which yielded the income statement below. Sales…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Last year Minden Company introduced a new product and sold 25,100 units of it at a price of $100 per…
A: The objective of the question is to calculate the net operating income, break-even point in unit…
Q: Mauro Products distributes a single product, a woven basket whose selling price is $27 per unit and…
A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…
Q: Last month when Holiday Creations, Incorporated, sold 42,000 units, its sales, variable expenses,…
A: Contribution Margin Ratio = (Contribution Margin / Sales) * 100Variable Expense Ratio = (Variable…
Q: Last month when Holiday Creations, Incorporated, sold 35,000 units, total sales were $140,000, total…
A: Lets understand the basics.Contribution margin ratio indicates contribution margin generated on…
Q: Last month when Holiday Creations, Inc., sold 37,000 units, total sales were $148,000, total…
A: MARGINAL COSTING INCOME STATEMENT In an Marginal Costing Income Statement One of the Important Cost…
Q: Last month when Holiday Creations, Incorporated, sold 40,000 units, total sales were $160,000, total…
A: The objective of the question is to calculate the contribution margin ratio for Holiday Creations,…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit…
A: Breakeven is the point at which an entity is neither earning nor losing anything. At this point, an…
Q: A company has provided the following data: Sales 2,000 units Sales price $50/unit Variable cost…
A: Variable costs are costs which changes along with change in sales activity level. Fixed costs do not…
Q: Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total…
A: Contribution margin is the difference between total sales revenue and total variable expenses,…
Q: Last year Minden Company introduced a new product and sold 25, 500 units of it at a price of $90 per…
A: CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…
Q: Subject - Acounting Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales…
A: The contribution margin analysis is usually carried out for determining the break-even point in…
Q: Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense…
A: The calculation of contribution margin has been made as follows: Contribution margin per…
Q: Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total…
A: The contribution margin is the excess of sales price over the variable expenses of a product. The…
Q: Last month when Holiday Creations, Incorporated, sold 43,000 units, total sales were $172,000, total…
A: The contribution margin ratio represents the portion of each sales dollar that contributes to…
Q: Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total…
A: Contribution Margin: It is the difference between sales revenue and variable cost. Contribution…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $48.00 per unit…
A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…
Q: Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total…
A: Contribution margin ratio is calculated by dividing contribution margin by sales revenue of company.…
Q: Last year Minden Company introduced a new product and sold 14,000 units at a price of $72 per unit.…
A: The question is based on the concept of Cost Accounting.Net operating profit or loss is the…
Q: A company's contribution margin ratio is 18% and its fixed monthly expenses are $49,000. If the…
A: Contribution Margin :— It is the difference between sales and variable cost. Operating income :—…
Q: Last month when Holiday Creations, Incorporated, sold 45,000 units, total sales were $180,000, total…
A: Contribution Margin :— It is the difference between sales revenue and variable cost. Contribution…
Q: Required information [The following information applies to the questions displayed below.] Data for…
A: The objective of the question is to determine the impact on the net operating income if Hermann…
Q: Part 2. Rhiner Company prepared the following contribution format income statement based on a sales…
A: Contribution margin income statement is an income statement which shows contribution margin amount…
Q: Holiday Creations, Incorporated, sold 36,000 units, total sales were $144,000, total variable…
A: In Variable Costing we find contribution margin by deducting per unit…
Q: If a company, sold 37,000 units, total sales were $148,000, total variable expenses were $105,080,…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income statement is one of the important Cost…
Q: Whirly Corporation’s most recent income statement is shown below: Total Per Unit Sales…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: Lindon Company is the exclusive distributor for an automotive product selling for $22.00 per unit…
A: Contribution Margin (CM): This concept represents the portion of sales revenue available to cover…
Q: Last month when Holiday Creations, Incorporated, sold 43,000 units, total sales were $172,000, total…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…
Q: Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Last month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses,…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Last month when Holiday Creations, Incorporated, sold 35,000 units, total sales were $140,000, total variable expenses were $109,200, and fixed expenses were $38,600. 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 sales volume by 300 units and total sales by $1,200? Note: Do not round intermediate calculations. Answer is complete but not entirely correct. 1. Contribution margin ratio 2. Estimated change in net operating income 22 % $ 347 XLast year Minden Company introduced a new product and sold 25,700 units of it at a price of $100 per unit. The product's variable expenses are $70 per unit and its fixed expenses are $838,200 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What…Last year Minden Company introduced a new product and sold 25,700 units of it at a price of $93 per unit. The product's variable expenses are $63 per unit and its fixed expenses are $839,700 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…
- 1.) refer to the original data. Compute the company's margin of safety in both dollar and percentage terms ? 2.) what is the company's cm ratio? If he company can sell more units thereby increasing sales by $84000 per month and there is no change in fixed expense, by how much would you expect monthly net operating income to increase?In March, James Electronics had sales of $2,550,000 (25,500 units), total variable expenses of $1,275,000, and total fixed expenses of $825,000. Required: 1. What is the company's CM ratio? CM ratio % A 2. Using the CM ratio, calculate the break-even level of sales in dollars. Break-even level of sales in dollor 3. What is the break-even level of sales in units? Break-even level of sales in units unitsLast year Minden Company introduced a new product and sold 25,800 units of it at a price of $95 per unit. The product's variable expenses are $65 per unit and its fixed expenses are $836,100 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…
- Mauro Products sells a woven basket for $14 per unit. Its variable expense is $11 per unit and the company's monthly fixed expense is $9,000. Required: 1 Calculate the company's break-even point in unit sales 2 Calculate the company's break-even point in dollar sales Note: Do not round intermediate calculations. 3. If the company's fixed expenses increase by $600, what would become the new break even point in unit sales? In dollar sales? Note: Do not round intermediate calculations. 1. Break-even point in unit sales 2 Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets basketsLawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales Operating expenses: Variable expenses Fixed expenses Total expenses Operating profit $28,800,000 9,400,000 $48,000,000 1. Breakeven point in sales dollars 2. Required sales in dollars 3. Breakeven point in sales dollars 38,200,000 $ 9,800,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $13,000,000. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the variable expenses increases by 14% ? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)Gayne Corporation's contribution margin ratio is 19% and its fixed monthly expenses are $50,500. If the company's sales for a month are $312,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. Multiple Choice $202,220 $8,780 $261,500 $59,280
- 3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Contribution Answer is not complete. per snowboard 4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Operating income X Answer is not complete.Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution formaet Income statement for the most recent month is given below Sales (12,600 units $30 per unit) Variable expenses Contribution margin Fixed expenses $ 378,000 226,800 151,280 160,200 Net operating loss $ (18,000) Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,600 Increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $82,000 per month. If the president is right, what will be the Increase (decrease) in the company's monthly net operating Income? 3. Refer to the original dets. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39,000 in the monthly advertising…[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 125 80 $ 45 Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Req 1A Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? 1-b. Should the advertising budget be increased? Reg 1B Percent of Sales Complete this question by entering your answers in the tabs below. 100% 64 36% by How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? Note: Do not round intermediate calculations. Net operating income Req 1A Req 1B >