Toussaint Company sells 20,000 units at $120 per unit. Variable costs are $90 perunit, and fixed costs are $250,000.C.Prepare an income statement for Toussaint in contribution margin format.Determine Toussaint's (1) contribution margin ratio and (2) unit contribution margin.How much would operating income change if Toussaint's sales increased by 3,000units?

Contribution Margin is derived by deducting sales revenue and variable cost. This is the profit…

Answered: Toussaint Company sells 20,000 units at…

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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4.
Harry Company sells 37,000 units at $44 per unit. Variable costs are $36.52 per unit, and fixed costs are $96,900. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) b. Unit contribution margin (Round to the nearest cent.) per unit C. Operating income
Last month when Holiday Creations, Incorporated, sold 35,000 units, total sales were $140,000, total variable expenses were $109,200, and fixed expenses were $38,600. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 300 units and total sales by $1,200? Note: Do not round intermediate calculations. Answer is complete but not entirely correct. 1. Contribution margin ratio 2. Estimated change in net operating income 22 % $ 347 X
Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $123,000, and fixed expenses were $38,900. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 425 units and total sales by $1,700? (Do not round intermediate calculations.) 1. Contribution margin ratio 2 Estimated change in net operating income
Willie Company sells 34,000 units at $47 per unit. Variable costs are $32.43 per unit, and fixed costs are $213,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Operating income $fill in the blank 3
Dhapa
Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total variable expenses were $127,680, and fixed expenses were $37,200. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 500 units and total sales by $2,000? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %
both answer please provide.
Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $116,440, and fixed expenses were $38,600. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 600 units and total sales by $2,400? (Do not round intermediate calculations.)
Vikrambahi
Gadubhai
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:

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