The cost and revenue information of India Company for the last year (2022) is provided below: Sales units - 200 units, Selling price per unit - 1500 dollars, Number of units produced - 200 units, DM - $850 per unit, DL - $115 per unit. Var MOH- $20 per unit. Fixed MOH- $45,000, Var Selling and Adm Exp- $15 per unit, Fixed S&A Exp- $15.000, A.) Prepare CVP Income Statement. B.) Calculate BEP in Units and BEP in dollars. C.) What is the margin of safety ratio of India Co.? D.) Calculate the degree of operating leverage and explain what happens to NI if sales increase 10% and decrease 10%.

The cost and revenue information of India Company for the last year (2022) is provided below: Sales units - 200 units, Selling price per unit - 1500 dollars, Number of units produced - 200 units, DM - $850 per unit, DL - $115 per unit. Var MOH- $20 per unit. Fixed MOH- $45,000, Var Selling and Adm Exp- $15 per unit, Fixed S&A Exp- $15.000, A.) Prepare CVP Income Statement. B.) Calculate BEP in Units and BEP in dollars. C.) What is the margin of safety ratio of India Co.? D.) Calculate the degree of operating leverage and explain what happens to NI if sales increase 10% and decrease 10%.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Question

Or
The cost and revenue information of India Company for the last year (2022) is provided below: Sales units - 200
units, Selling price per unit - 1500 dollars, Number of units produced 200 units, DM - $850 per unit, DL - $115 per
unit. Var MOH- $20 per unit. Fixed MOH- $45,000, Var Selling and Adm Exp = $15 per unit, Fixed S&A Exp = $15.000,
A.) Prepare CVP Income Statement. B.) Calculate BEP in Units and BEP in dollars. C.) What is the margin of safety ratio
of India Co.? D.) Calculate the degree of operating leverage and explain what happens to NI if sales increase 10% and
decrease 10%.

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