The Gasson Company sells three products, Product A, Product B and Product C, and had sales of $1,000,000 during the month of June. The company's overall contribution margin ratio was 37% and fixed expenses totalled $350,000. Product Product Product A B с Sales $500,000 $300,000 $200,000 Traceable 120,000 100,000 60,000 fixed costs Variable 300,000 180,000 expenses The net operating income for the company as a whole for June was: Select one: a. $20,000 b. $90,000 c. $170,000 d. $300,000

The Gasson Company sells three products, Product A, Product B and Product C, and had sales of $1,000,000 during the month of June. The company's overall contribution margin ratio was 37% and fixed expenses totalled $350,000. Product Product Product A B с Sales $500,000 $300,000 $200,000 Traceable 120,000 100,000 60,000 fixed costs Variable 300,000 180,000 expenses The net operating income for the company as a whole for June was: Select one: a. $20,000 b. $90,000 c. $170,000 d. $300,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

See similar textbooks

Similar questions

Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
Company X requires sales of $2,042,000 to achieve its target net income. Contribution margin ratio of company X is 25% and fixed costs amounts to $150,000. Determine the amount of target net income. $2,192,000 $548,000 $360,500 $510,500
2. A company sells a single product at a price of $20 per unit. Variable expenses are$12 per unit. The company’s contribution format income statement for the mostrecent month follows:Total Per UnitSales (15,000 units) $300,000 $20Variable expenses 180,000 12Contribution margin 120,000 $8Fixed expenses 100,000Net operating income $20,000If the company sells 16,500 units next month, what should be the company’s totalcontribution margin? Show your calculations. Suggested approach: Total number of units sold × Unit CM **Pls help me im clear soultion with accurate answers pls thank u
MIKAS, Inc. sells and installs furnaces for P3,000 per furnace. The following cost formula relates to last year's operations at MIKAS: Y = P125,000 + P1,800XIf MIKAS sold and installed 500 furnaces last year, what was its total contribution margin last year? 600,000 475,000 900,000 1,025,000
The following is last month's contribution format income statement: Total Sales (12,000) $300,000 Variable costs $225,000 Contribution margin $75,000 Fixed costs $56,000 Net income $19,000 What is the company's margin of safety expressed in units? O A. 2,500 B. 3,040 O C. 8,960 O D. 12,000
Iqbal Corporation produces and sells a single product, has provided its contribution format income statement for March. Sales (17,000 units) Rs. 2,210,000 Variable Expenses 1,530,000 Contribution Margin 680,000 Fixed Cost 250,000 Net Profit 430,000 If the company sells 19,000 units, its net operating income should be closest to:
qbal Corporation produces and sells a single product, has provided its contribution format income statement for March. Sales (17,000 units) Rs. 2,210,000 Variable Expenses 1,530,000 Contribution Margin 680,000 Fixed Cost 250,000 Net Profit 430,000 If the company sells 19,000 units, its net operating income should be closest to:
A company manufactures and sells a single product that sells for $700 per unit; variable costs are $378. Annual fixed cost are $993, 600. Current yearly sales are $4,360,000. Flannigan company management targets an annual pretax income of $1,285,000. Computer dollar sales to earn the target pretax net income