Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,700 units) $ 246, 400 $ 32.00Variable expenses 138, 600 18.00 Contribution margin 107,800 $ 14.00 Fixed expenses 54, 500 Net operating income $ 53,300 Required: (Consider each caseindependently): What would be the revised net operating income per month if the sales volume increases by 60 units? What would be the revised net operatingincome per month if the sales volume decreases by 60 units? What would be the revised net operating income per month if the sales volume is 6, 700 units?

1.Income statement - 60 units increases:ParticularsAmount ($)Sales ((7,700 + 60) * $32)$248,320Less:…

Answered: ndependently): What would be the…

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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Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,890,000 pages at a price of $0.06 each in the coming year. Product costs include: Direct materials Direct labor Variable overhead Total fixed overhead $0.009 $0.003 $0.001 $84,320 There is no variable selling expense; fixed selling and administrative expenses total $36,000.
54) For the current year ending April 30, MJW Company expects fixed costs of $70,000, a unit variable cost of $60, and a unit selling price of $95. (a) Compute the anticipated break-even sales (units). (b) Compute the sales (units) required to realize an operating profit of $8,000. (a) (b)
Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) Variable expenses $ 198,000 99,000 $ 6.00 3.00 Contribution margin 99,000 $ 3.00 Fixed expenses 41,000 Net operating income $ 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 10%? 1. Net operating income 2. Net operating income e to search
If operating income is P60,000, average operating assets are P240,000, and the minimum required rate of return is 20%, what is the residual income? 50% 25% P12,000 P45,000
Revenue Analysis A similar manufacturer's total monthly revenue function is .. R(q) = 240g - 0.08q? %3D where R is in dollars and q are in units of output produced and sold during the month. Currently, this manufacturer is producing 80 units a month and is planning to increase monthly output by 1 unit. Use the revenue function to compute the actual additional revenue that will be generated by the production and sale of the 81st unit. (Round to the nearest 2 decimal places, if needed) ASUS f4 f7 E3 口京团 f10 f11 因

Brannon Company expects sales of 700 units for the first quarter, 750 units for the second quarter, 800 units for the third quarter, and 900 units for the fourth quarter. If the sales price is $25 per unit, what is the expected sales for the year? A. $22,500 B. $17,500 C. $20,000 D. $78,750
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?
please answer 4a,b,c and 5 only. 4-a. What will be the new breakeven point if the additional $213,280 is spent on advertising? 4-b. Prepare a contribution income statement at the new breakeven point. 4-c. What is the percentage change in both fixed costs and in the breakeven point? 5. If the additional $213,280 is spent for advertising in the next year, what is the sales level (in units) needed to equal the current year’s operating profit at 60,000 units
2. On the basis of French's revised information, what does next year look like: a. What is the break-even point? 1,035,688 units Sales at full capacity (units) Sales volume (units) Unit sales price ($) Sales revenue ($) Variable cost per unit ($) Contribution margin per unit ($) Total variable cost ($) Fixed costs ($) Profit ($) Ratios Variable cost to sales Unit Contribution to sales Utilization of capacity (%) Break even point (units) Aggregate 2,000,000 1,750,000 6.948 12,160,000 3.385 3.56 5,925,000 3,690,000 2,545,000 0.49 0.51 87.5 1,035,688.312 A 400,000 $10 4,000,000 7.5 2.5 3,000,000 960,000 40,000 0.75 0.25 20 384,000 Product Lines B 400,000 $9 3,600,000 3.75 5.25 1,500,000 1,560,000 540,000 0.42 0.58 20 297,143 C 950,000 $4.80 4,560,000 1.5 3.3 1,425,000 1,170,000 1965000 0.31 0.69 47.5 354,545
1-Due to an increase in labor rates, the company estimates that variable expenses will increase by $3 per ball next year. If this change takes place and the selling price per ball remains constant at $25, what will be the new CM ratio and break-even point in balls? 2. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $90,000, as last year? 3. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year, what selling price per ball must it charge next year to cover the increased labor costs?
4. Will the break-even point would be higher or lower with May’s sales mix than with April’s sales mix? 5. Assume that sales of the Standard racket increase by $20,200. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,200? Do not prepare income statements; use the incremental analysis approach in determining your answer.
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