How much will net income increase? Sunrise Enterprises provides the following financial data:Sales Revenue: $150,000• Variable Expenses: $90,000• Fixed Expenses: $40,0001. Compute the Contribution Margin (CM) in dollars.2. Determine the Contribution Margin Ratio.3. If quarterly sales increase by $5,500 and there is no change in fixedexpenses, how much will net income increase?

1) Contribution margin = Sales Revenue - Variable costContribution margin =…

Answered: Sunrise Enterprises provides the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If sales increase by $50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Total Per Unit Sales .... $450,000 $30 Variable expenses.. 180,000 12 Contribution margin Fixed expenses. 270,000 $18 216,000 Net operating income. $ 54,000
If marginal revenue is -0.006,r21 is expanded from 92 units to 145 units? Please round your answer to the nearest whole number. 1,213 and the cost per unit is 0.9, how much do profits increase by when output
4.) refer to the orginal data. Compute the company's margin of safety in both dollar and percentage terms. 5.) what is the company's CM ratio? If the company can sell more units thereby increasing sales by $50000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs Net income The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcilie them. What is the plug variable here? $ 23,000 14,300 $8,700 Total Multiple Choice $9,195 $9,204 $9.217 $19,612 Assets $9,99 Balance Sheet $9,500 Debt Equity $9,500 Total $5,500 4,000 $9,500
Carla Vista Company is considering two alternatives. Alternative A will have sales of $154,800 and costs of $100,100. Alternative B will have sales of $181,400 and costs of $131,800. Compare alternative A with alternative B showing incremental revenues, costs, and net income. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Revenues Costs Net income $ Alternative A is better than Alternative A Alternative B eTextbook and Media $ Alternative B $ Net Income Increase (Decrease)
REQUIRED Use the information given below to calculate each of the following independently: 3.1 Expected total Marginal Income and Net Profit/Loss 3.2 3.3 3.4 3.5 Margin of safety (as a percentage; expressed to two decimal places) Break-even quantity if the selling price drops by 10% Break-even value using the marginal income ratio, if the company spends an additional R435 200 on salaries Selling price per unit that will enable the company to achieve a net profit of R1 500 000 INFORMATION Slumber Limited manufactures beds. The following information was extracted from the budget for 2024: Expected production and sales (units) Selling price per bed Direct materials cost per bed Direct labour cost per bed Variable manufacturing overheads cost per bed Fixed manufacturing overheads cost Sales commission (as a percentage of the selling price) Fixed administrative and selling costs 1 200 R6 000 R1 700 R860 R320 R1 084 800 20% R720 000
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