What is the value of revenue to have operating income of $100,000? Units 3,000 Per Unit Revenue $10.00 $30,000 - Variable Cost 6.00 18,000 - Contribution Margin 4.00 12,000 - Fixed Cost 8,000 Operating Income 4,000

What is the value of revenue to have operating income of $100,000? Units 3,000 Per Unit Revenue $10.00 $30,000 - Variable Cost 6.00 18,000 - Contribution Margin 4.00 12,000 - Fixed Cost 8,000 Operating Income 4,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: If average revenue per unit is expected to be $25 and cost of goods sold are expected to be $17 per…

A: The breakeven point represents the level of sales or units sold at which total revenue equals total…

Q: ermine the missing amounts. Unit Selling Price $900 $500 $ (e) $ LA Unit Variable Costs $432 (c) (f)…

A: Contribution Margin -The amount of sales revenue from a product that isn't consumed by variable…

Q: Given the following projected contribution income statement for the coming year: Sales (100 units)…

A: Given information, Sales revenue=P 10,000 Variable costs =3,000 Contribution margin =7,000 Fixed…

Q: Fixed cost per unit is $12 when 10,000 units are produced and $4.8 when 25.000 units are produced.…

A: Fixed costs are costs that doesn't change with the change in the activity or the production level.…

Q: Expected unit selling price is: $125 Expected unit variable cost is: $70 Expected total fixed…

A: Important formula's to be used while doing calculations: Break-even point in units = Fixed cost /…

Q: If sales are $797,000, variable costs are 80% of sales, and operating income is $201,000, what is…

A: Contribution margin is computed by subtracting the variable costs from sales. Contribution margin…

Q: Calculate the number of units that must be sold in order to realize an operating income of $153,000…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

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: Expected unit selling price is: $125 Expected unit variable cost is: $70 Expected total fixed…

A: In this numerical has covered the concept of Cost- Volume - Profit analysis. Break- Even Point Is…

Q: Assume the following information: Amount Per Unit Sales $ 300,000 $ 40…

A: Break-even analysis is a technique used widely by production management. It helps to determine the…

Q: ABC Company provides the following information about its product: Targeted operating income…

A: We should first understand about the contribution margin ratio to solve this question. Contribution…

Q: he following information is for Corp: Selling price $60 per unit Variable costs $40 per unit…

A: Calculation of targeted sale revenue are as follows

Q: A company’s contribution margin per unit is $25. If the company increases its activity level from…

A: The additional money generated from selling a product after deducting the variable cost from the…

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: If fixed costs are $1,476,000, the unit selling price is $237, and the unit variable costs are $101,…

A: The objective of this question is to find out the number of units that need to be sold to achieve a…

Q: A company sells its products for S80 per unit and has per-unit variable costs of $30. What is the…

A: Contribution margin is the excess of sales price over the direct costs of a product. The…

Q: Using the following information, what would variable cost per unit be at 8,000 units? 2,000 3,000…

A: Total variable cost is the cost which varies with the change in the production volume. If the…

Q: Looking at the graph, which of the following statements must be true?

A: Answer: (2nd Option ) The CM Breakeven point per unit is $ 10.52.

Q: If the contribution margin on the firm's single product is $2.00 per unit and fixed costs are…

Q: When fixed costs are $18,000 and the contribution margin per unit is $4, the breakeven point is

A: Breakeven point is the point at which total revenue is equal to total costs. It is calculated as:…

Q: If fixed costs are $1,484,000, the unit selling price is $232, and the unit variable costs are $101,…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: For Waterway Industries at a sales level of 4000 units, sales is $83000, variable expenses total…

A: The Contribution Margin (CM) per unit is the difference between Sales per unit and Variable Cost per…

Q: If fixed costs are $1,252,000, the unit selling price is $225, and the unit variable costs are $106,…

A: Operating income: Operating income refers to the income generated from the operation of business,…

Q: For Bramble Corp. at a sales volume of 4000 units, sales revenue is $71000, variable costs total…

A: The contribution margin is the difference between the sales and the variable cost. The contribution…

Q: prepare a contribution income statement with the following: Selling Price Per Unit $45 Variable…

A: A contribution margin income statement refers to an income statement wherein all factor costs are…

Q: Sales (10,000 units) Less variable costs Contribution margin Less fixed costs Net income $150,000 -…

A: Lets understand the basics.Contribution margin per unit is a margin generated on sales. It is…

Q: ed Manufacturing produces a product at $25 per unit price, sells, 1,000 units and accrues $10,500 in…

A: Contribution margin is also known as dollar contribution per unit. Essentially contribution margin…

Q: 1: BREAK-EVEN POINT IN UNITS AND IN REVENUE Unit selling price $8.00 Unit variable costs Unit…

A: Exercise:-1 Calculation of Breakeven point in units and in revenue as follows under:-

Q: this information, what is Your Company's Your Company's expected net income when 5,000 units are…

A: Option D Or $26250 Sales (5000 × $20) $100000 Less : Variable Cost (1 - 0.35) × Sales $65000…

Q: Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Given selling price is $20 per unit, fixed costs are $3 per unit, and profit per unit is $1, What is…

A: Contribution per unit can be calculated by adding fixed cost per unit to the profit per unit.

Q: 31) Beta has three products, A, B, and C. The following information is available: C $24,000 9,000…

A: The term "operating income" refers to the money that remains after all operational expenditures and…

Q: Determine the missing amounts UNIT SELLING PRICE UNIT VARIABLE COSTS UNIT CONTRIBUTION MARGIN…

A: MARGINAL COSTING INCOME STATEMENT Income & Loss Under Marginal Costing is Determined by…

Q: If sales are $797,000, variable costs are 69% of sales, and operating income is $206,000, what is…

A: Formula: Contribution margin ratio = [ ( Sales - variable cost ) / Sales ] x 100

Q: A company’s product sells for $150 and has variable costs of $60 associated with the product. What…

A: Variable costs are those costs which changes with change in level of activity and fixed costs are…

Q: What is the breakeven point in unit, assuming a product's selling price is $100 fixed costs are…

A: Compute the CPU as follows:

Q: If sales are $30,000, fixed costs are margin ratio? $10,000, and variable costs are $7,000 what is…

A: Contribution Margin Ratio: It represents the money made on each product of the company after…

Q: Given the costs to produce 30,000 units, calculate the amounts for 1.-4. below Number of units…

A: Fixed costs do not change with the volume of the production. The variable cost varies with the…

Q: Royal Company provides the following information about its single product. Targeted operating…

A: Contribution margin per unit = Selling price per unit - Variable cost per unit

Q: If fixed costs are $1,334,000, the unit selling price is $240, and the unit variable costs are $109,…

A: Desired Sales = (Desired Income + Fixed Costs) / (Selling Price - Variable Costs)

Q: Lorri’s income statement is as follows: Sales* $60,000 Less variable costs (19,200) Contribution…

A: Contribution margin per unit is the per unit value earned by the entity after deducting variable…

Q: Consider the following information from the income statement of Leighton Company: Contribution…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. At…

Q: sales revenue is $35,000, fixed cost is $5,000, and net operation income is $10,000, what is the…

A: The contribution margin is calculated by deducting the variable cost from the sales revenue of the…

Q: ounded to the nearest dollar) using the following data is Line Item Description Amount Variable…

A: Markup % = (Fixed cost + Desired profit) / Total Variable cost Markup % = ($90,000 + $150,000) /…

Question

What is the value of revenue to have operating income of $100,000?
Units
3,000
Per Unit
Revenue
$10.00
$30,000
- Variable Cost
6.00
18,000
- Contribution Margin
4.00
12,000
- Fixed Cost
8,000
= Operating Income
4,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 111,000 Net operating income $ 69,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $77,400. $82,200. $153,200. $88,500.
For Waterway Industries at a sales volume of 5000 units, sales revenue is $67000, variable costs total $ 44000, and fixed expenses are $21000. What is the unit contribution margin? Select answer from the options below $4.20 $8.80 $9.20 $4.60
Company G has the following information on its management books: Price per Unit: $8 Variable Costs per Unit: $2 Total Fixed Costs: $24,000 How many units must Company G sell to make a profit of $12,000?
Determine the missing amounts Unit Selling Price$250 $500 (e)Unit Variable Costs$180 (c) (f)Unit Contribution Margin(a) $200 $330Contribution Margin Ratio(b) (d) 30%
Given the following information, find dollar sales: a. Fixed costs, $60,000; profit, $18,000; sales price per unit, $8.00; variable cost per unit, $5.00 b. Variable rate, .45; profit, $21,578.10; fixed costs, $58,382 c. Sales price per unit, $16.60; profit, $21,220; contribution margin, $9.29; fixed costs, $126,000
Sales revenue (1000 units) $20,000 Fixed costs $29,000 Contribution margin ration 60%, what is the variable cost per unit?
Contribution margin Amon Company sells 180,000 units at $185 per unit. Variable costs are $111 per unit, and fixed costs are $8,175,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio b. Unit contribution margin $ c. Operating income LA % per unit
If sales are $796,000, variable costs are 76% of sales, and income from operations is $230,000, what is the contribution margin ratio? Oa. 76% Оb. 72% Ос. 28% Od. 24%
If sales are $720,000, variable costs are 58% of sales, and operating income is $68,000, what is the contribution margin? Group of answer choices $302,400 $417,600 42% $234,400
Revenue per Unit $10.00 Commission (variable cost) $1.00 Fill in highlighted cells while including formulas used. 1) What is the contribution margin per unit? 2) What is the break even point per month? 3) With salary of $4,000/month, what is the break even point?
Assume the following information: Amount Per Unit Sales $ 600,000 $ 40 Contribution margin $ 360,000 $ 24 Net operating income $ 240,000 If the selling price per unit increases by 8% and unit sales drop by 6%, then the best of estimate of the new net operating income is: Multiple Choice $263,520. $243,520. $253,520. $233,520.
If sales are $797,000, variable costs are 69% of sales, and operating income is $206,000, what is the contribution margin ratio? Oa. 69% Ob. 35% Oc. 65% Od. 31%