Sales (8,400 units)Variable expensesTotal$ 260,400159,600Per Unit$ 31.0019.00$ 12.00Contribution marginFixed expenses100,80055,300$ 45,500Net operating incomeRequired:(Consider each case independently):1. What would be the revised net operating income per month if the sales volume increases by 90 units?

Variable expense and no of units sold are interrelated. Change in the sales unit leads to change in…

Answered: Sales (8,400 units) Variable expenses…

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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Similar questions

6.Dalian Company provides the following information: Price per unit $20.00 Variable cost per unit $8.00 Fixed costs per month: $15,000 What is the break-even point in terms of units sold? Select one: A.1,875 B.1,250 C.1,200 D.1,150
Sales revenue (1000 units) $20,000 Fixed costs $29,000 Contribution margin ration 60%, what is the variable cost per unit?
Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 60,000 Net operating income $ 120,000 If the company decides to pay a sales commission of 2.5% for each unit sold above the break-even point, what net operating income will it earn if it sells 4,600 units? Multiple Choice $50,800 $45,800 $50,400 $48,300
Revenue per Unit $10.00 Commission (variable cost) $1.00 Fill in highlighted cells while including formulas used. 1) What is the contribution margin per unit? 2) What is the break even point per month? 3) With salary of $4,000/month, what is the break even point?
Assume the following information: Amount Per Unit Sales $ 600,000 $ 40 Contribution margin $ 360,000 $ 24 Net operating income $ 240,000 If the selling price per unit increases by 8% and unit sales drop by 6%, then the best of estimate of the new net operating income is: Multiple Choice $263,520. $243,520. $253,520. $233,520.
Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Multiple Choice O O How many units need to be sold to achieve a target profit of $16,900? 4,150 units 1,019 units 2,817 units Amount 6,220 units $30 80% $ 8,000 per month 3,400 per month
Question 5A .
D
Ignore first question and answer only 2
How many units would have to be sold each month to attain a profit of 51600? sales 608,000. Per unit 40 variable expenses 425600 per unit 28 contribition margin 182400 per unit 12 fixed expense 156,000 net operating income 26400

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