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Mini-Exercise 12-4 (Algo) CVP analysis LO 8 Current operating income for Bay Area Cycles Co. is $54,000. Selling price per unit is $100, the contribution margin ratio is 30%, and fixed expense is $216,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Vanable expense Contribution margin Fored expense Operating income Per Unit $ 10000 Additional unit sales Volume units $ Total (216,000) 54,000 Ratio 100% 2. How many additional unit sales would be necessary to achieve operating income of $135,000? % 30 %

Mini-Exercise 12-4 (Algo) CVP analysis LO 8 Current operating income for Bay Area Cycles Co. is $54,000. Selling price per unit is $100, the contribution margin ratio is 30%, and fixed expense is $216,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Vanable expense Contribution margin Fored expense Operating income Per Unit $ 10000 Additional unit sales Volume units $ Total (216,000) 54,000 Ratio 100% 2. How many additional unit sales would be necessary to achieve operating income of $135,000? % 30 %

FINANCIAL ACCOUNTING
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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Mini-Exercise 12-4 (Algo) CVP analysis LO 8 Current operating income for Bay Area Cycles Co. is $54,000. Selling price per unit is $100, the contribution margin ratio is 30%, and fixed expense is $216,000 Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Foxed expense Operating income Per Unit $ 100 00 Additional unit sales Volume units $ Total (216,000) 54,000 Ratio 100 2. How many additional unit sales would be necessary to achieve operating income of $135,000? 30%
Transcribed Image Text:Mini-Exercise 12-4 (Algo) CVP analysis LO 8 Current operating income for Bay Area Cycles Co. is $54,000. Selling price per unit is $100, the contribution margin ratio is 30%, and fixed expense is $216,000 Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Foxed expense Operating income Per Unit $ 100 00 Additional unit sales Volume units $ Total (216,000) 54,000 Ratio 100 2. How many additional unit sales would be necessary to achieve operating income of $135,000? 30%
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