PR 3-6 (Algo) (LO 3.4) All Or Muffin company has the following financial information: All Or Muffin company has the following financial information: Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Taxes Net Income 2,100,000 $ 656,250 $ 1,443,750 $ 553,750 $ 890,000 $ 240,300 $ 649,700 Question a. What is All Or Muffin's contribution margin ratio? Note: Round your answer to 2 decimals. b. What is All Or Muffin's tax rate? Note: Round your answer to 2 decimals. c. If All Or Muffin increases sales price by 10% and maintain current unit sales, what will All Or Muffin's net income be? Note: Round your answer to 2 decimals. d. If All Or Muffin increases unit sales by 10%, what will All Or Muffin's net income be? Note: Round your answer to 2 decimals. Answer 68.75 % 27.00%
PR 3-6 (Algo) (LO 3.4) All Or Muffin company has the following financial information: All Or Muffin company has the following financial information: Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Taxes Net Income 2,100,000 $ 656,250 $ 1,443,750 $ 553,750 $ 890,000 $ 240,300 $ 649,700 Question a. What is All Or Muffin's contribution margin ratio? Note: Round your answer to 2 decimals. b. What is All Or Muffin's tax rate? Note: Round your answer to 2 decimals. c. If All Or Muffin increases sales price by 10% and maintain current unit sales, what will All Or Muffin's net income be? Note: Round your answer to 2 decimals. d. If All Or Muffin increases unit sales by 10%, what will All Or Muffin's net income be? Note: Round your answer to 2 decimals. Answer 68.75 % 27.00%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:PR 3-6 (Algo) (LO 3.4) All Or Muffin company has the following financial information:
All Or Muffin company has the following financial information:
Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
Taxes
Net Income
2,100,000
$ 656,250
$ 1,443,750
$ 553,750
$ 890,000
$ 240,300
$ 649,700
Question
a. What is All Or Muffin's contribution margin ratio? Note: Round your answer to 2 decimals.
b. What is All Or Muffin's tax rate? Note: Round your answer to 2 decimals.
c. If All Or Muffin increases sales price by 10% and maintain current unit sales, what will All Or Muffin's net income be?
Note: Round your answer to 2 decimals.
d. If All Or Muffin increases unit sales by 10%, what will All Or Muffin's net income be? Note: Round your answer to 2
decimals.
Answer
68.75 %
27.00%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education