Madison Company produces a single product which sells for $60 per unit. Fixed expenses total $16,800 per month, and variable expenses are $39 per unit. During the current month, sales, in units, totaled 1,000 units.Using the information above, match each of the items listed below with the appropriate amount. Contribution margin per unit. Contribution margin ratio. Break-even point in units. Break-even point in dollars. Total contribution margin at the break-even point. Net income during the current month. Margin of safety during the current month. Margin of safety rate during the current month. Operating leverage during the current month. Sales, in units, needed for a target profit of $6,300. Sales, in dollars, needed for a target profit of $5,250. If sales next month increase by 50%, what will be the net income?A.$48,000B.$12,000C.20.0%D.$4,200E.$14,700F.5.0G.35.0%H.$21I.1,100 UnitsJ.800 UnitsK.$16,800L.$63,000

Contribution margin per unit = selling price per unit - variable cost per unit…

Answered: Madison Company produces a single…

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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Madison Company produces a single product which sells for $60 per unit. Fixed expenses total $16,800 per month, and variable expenses are $39 per unit. During the current month, sales, in units, totaled 1,000 units.

Using the information above, match each of the items listed below with the appropriate amount.

	Contribution margin per unit.
	Contribution margin ratio.
	Break-even point in units.
	Break-even point in dollars.
	Total contribution margin at the break-even point.
	Net income during the current month.
	Margin of safety during the current month.
	Margin of safety rate during the current month.
	Operating leverage during the current month.
	Sales, in units, needed for a target profit of $6,300.
	Sales, in dollars, needed for a target profit of $5,250.
	If sales next month increase by 50%, what will be the net income?

A.	$48,000
B.	$12,000
C.	20.0%
D.	$4,200
E.	$14,700
F.	5.0
G.	35.0%
H.	$21
I.	1,100 Units
J.	800 Units
K.	$16,800
L.	$63,000

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