The company has a desired net income of $53,991 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.25 and round final answers to O decimal places, eg. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes Brake repair $
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…
Q: ! Required information [The following information applies to the questions displayed below.] Oslo…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: For Sheridan Company, sales is $2000000, fixed expenses are $900000, and the contribution margin…
A: Solution: Fixed expenses = $900,000 Target net income = $700,000 Contribution margin ratio = 36%
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Variable cost Depends upon the production of goods or services that is increment of sales increases…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The margin of safety represents the difference between actual or expected sales and the break-even…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: The weighted average contribution margin is used to calculate the overall break-even point of an…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution margin per unit is determined by subtracting the variable cost per unit less the sales…
Q: ! Required information [The following information applies to the questions displayed below.] Hudson…
A: A financial concept known as the "margin of safety" evaluates the level of safety or buffer that a…
Q: Required information [The following information applies to the questions displayed below.] Hudson…
A: Lets understand the basics. When target income is given and calculation is needed for determining…
Q: A company reports the following information for the single product it manufactures. Sales price…
A: Calculation: Requirement A:Selling price per unit $230Less: Variable cost per…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: The answer is in the explanation section below.Explanation:To find the breakeven point in dollar…
Q: Annual financial information for a company follows. Contribution Margin Income Statement Sales…
A: Answer:- Relevant Cost:- It is the cost that is different in different alternatives. It is used for…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin ratio = Contribution margin / sales = 8000/12000 = 66.67%
Q: SBD Phone Company sells its waterproof phone case for $122 per unit. Fixed costs total $262,000, and…
A: To decide the business volume at the desired degree of benefit, the current equation for discovering…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: Use the income statement below to answer the following questions. BASIC TRAVEL Contribution…
A: Formulas: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin…
Q: Cabrera Enterprises, a company that produces and sells a single product has provided its…
A: Solution: Contribution margin per unit = Contribution margin / Nos of units = $813,750 / 52500 =…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: The weighted average contribution margin is used to calculate the overall break-even point of an…
Q: Below is the contribution format income statement for a company based on a sales volume of 1,000…
A: Solution: Current CM per unit = $22,000 / 1000 = $22 per unit New CM per unit = $22 - $1 = $21 per…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…
Q: prepare a contribution income statement with the following: Selling Price Per Unit $45 Variable…
A: Contribution margin income statement: A contribution margin income statement is an income statement…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break even point is computed by dividing the fixed cost by contribution per unit. Fixed cost=$2250…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The margin of safety is part of cost volume profit analysis. It indicates the actors of actual sales…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: Lets understand the basics.Contribution margin ratio is a ratio which shows how much contribution is…
Q: ! Required information Use the following information for the Exercises below. (Algo) [The following…
A: Under marginal Costing Income is Computed by Deducting Fixed cost from Contribution Margin.…
Q: #equired: a. If the selling price increases by $4.00 per unit and the sales volume decreases by 300…
A: Net Operating Income-Net operating income (NOI) is a calculation used to analyze the profitability…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Margin of safety is the amount below which a company will start facing loss. It is calculated by…
Q: The Mariachi Company prepared the following contribution format income statement based on a sales…
A: Break-even point is that point at which a company is making no profit no loss. In other words at…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin ratio is the difference between company's sales and variable cost, expressed as…
Q: If a company, sold 37,000 units, total sales were $148,000, total variable expenses were $105,080,…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income statement is one of the important Cost…
Q: A merchandising company has provided the following contribution format income statement: Sales…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales…
A: Solution:Contribution margin refers to the revenue of the firm after deducting variable cost from…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The margin of safety is part of the cost volume profit analysis. There are excess sales over the…
Q: Restate the following income statement in contribution margin format. (Round answers to 2 decimal…
A: Step 1 A contribution margin income statement is an income statement in which all variable expenses…
Q: Required Information [The following information applies to the questions displayed below.] Oslo…
A: Variable costs are those nature of costs which changes with change in activity level of costs.…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution Margin Ratio: When a company's revenues exceed its variable expenses, the difference is…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Break even point is the optimum point of no profit no loss as at this point the firm is earning zero…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: Break even point It is the point at which total cost and total revenue are equal.This means that…
Q: Hei Below is the contribution format income statement for a company based on a sales volume of 1,000…
A:
Q: What is the margin of safety in dollars? What is the margin of safety percentage? largin of safety…
A: We will apply the CVP principles and theory here. CVP refers to cost volume profit analysis. As per…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A:
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- Thornton Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. 12 Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 6 per unit $152,000 per year $102,100 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $178,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,400 units, how much could it pay in salaries for salespeople and still have a profit of $178,500? (Hint Use the equation method.) a. Break-even point in units Break-even point in dollars b Required sales in units Required sales in dollars C Fixed cost of salariesRequired information [The following information applies to the questions displayed below] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costs Income 1. Amount of sales 2. Margin of safety 1. Assume Hudson has a target income of $163,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) $ 2,716,000 2,037,000 679,000 441,000 $ 238,000 %A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales revenue 260,000 $ 1,118,000 Variable manufacturing expense $ 429,000 Fixed manufacturing expense $ 288,000 $ 91,000 Variable selling and administrative expense Fixed selling and administrative expense Net operating income $ 228,000 $82,000 What is the company's unit contribution margin? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $4.30 per unit $0.32 per unit h
- Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): $ 45,000 31,500 Sales Variable expenses Contribution margin Fixed expenses 13,500 8,640 Net operating income $ 4,860 10. How many units must be sold to achieve a target profit of $8,100? Number of unitsCVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 86,000 34,400 51,600 39,560 $ 12,040 Required: 1. What is the company's degree of operating leverage? Required 1 Percent of Sales 100% 40% 60% 2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 5% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.)
- Required information [The following information applies to the questions displayed below] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): $ 10,000 5,500 4,500 2,250 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2,250 2. What is the contribution margin ratio? Contribution margin ratioThe Mariachi Company prepared the following contribution format income statement based on a sales volume of 1,200 units (the relevant range of production is 500 units to 2,000 units): Sales 26,400 Variable expenses 18,000 Contribution margin 8,400 Fixed expenses 6,200 Net operating income 2,200 If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) Variable expenses Contribution margin Fixed expenses $ 120,000 90,000 30,000 21,000 $ 9,000 Net operating income If sales volumes decline to 2,900 units, the net operating income would be closest to:
- Cullumber Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income (a) Net income $ (b) Shocker Net Income Tingler $300,000 $500,000 Tingler Net Income $ Total Net Income (c) Why or why not? Compute current net income for Cullumber Company. ta Net income would 151,400 148,600 $ 119,400 S $29,200 Fixed expenses consist of $298,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,800 (Shocker), and $34,300 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Shocker 197,000 303,000 229,800 $73,200 Compute net income by product line and in total for…Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales Variable expenses $ 96,000 100% 38,400 40% Contribution margin 57,600 60% Fixed expenses 44,160 Net operating income. $ 13,440 Required: Assessment Tool iFrame 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 7% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 7% increase in unit sales.