Sales (8,400 units)Variable expensesTotal$ 260,400159,600Per Unit$ 31.0019.00$ 12.00Contribution marginFixed expenses100,80055,300$ 45,500Net operating incomeRequired:(Consider each case independently):1. What would be the revised net operating income per month if the sales volume increases by 90 units?

Variable expense and no of units sold are interrelated. Change in the sales unit leads to change in…

Answered: Sales (8,400 units) Variable expenses…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sales (18,00e units) Variable expenses Contribution margin Fixed expenses $ 368,008 144,e00 216,eee 188,eee $ 36,000 Operating incone Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even polnt in sales dollars.
Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 300,000 120,000 180,000 60,000 $ 120,000 Per Unit $40 16 $24 If unit sales increase by 21%, then the best of estimate of the new net operating income is: Note: Do not round your intermediate calculations.
Sales (18,000 units) Variable expenses Contribution margin Fixed expenses $ 360,000 144,e00 216,eee 180,eee Operating income $ 36,eee Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio?
Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volume
Given the following data: Per Unit TotalSales $ 15 $ 45,000Less variable expenses 9 27,000Contribution margin 6 18,000Less fixed expenses 12,000Operating profit $ 6,000If sales decrease by 500 units, by what percent would fixed costs have to be reduced by to maintain current operating profit? 25.0%.16.7%.50.0%.33.3%.
Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) Variable expenses $ 198,000 99,000 $ 6.00 3.00 Contribution margin 99,000 $ 3.00 Fixed expenses 41,000 Net operating income $ 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 10%? 1. Net operating income 2. Net operating income e to search
If marginal revenue is -0.006,r21 is expanded from 92 units to 145 units? Please round your answer to the nearest whole number. 1,213 and the cost per unit is 0.9, how much do profits increase by when output
Miller ompany s Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating income - Required: (Consider each case independently): Total $ 272,000 170,000 1. Net operating income 2. Net operating income $ 3. Net operating income $ 4. Net operating income 102,000 47,000 $ 55,000 1. What is the revised net operating income if unit sales increase by 19%? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 16%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 10%? $ 74,380 16,104 89,120 Per Unit $ 8.00 5.00 $ 3.00 Prev 1 of 1 Next > Search
NAPOLEN SALES REVENUE IS $ 500000 , VARIABLE COST IS 20000 , FIXED C OST FOR THE YEAR IS $ 50000 SHOW THE NET PROFIT IN THE INCOME STATEMENT
Ma4. Given: Selling price per unit Euros 96,00 € Total fixed Expenses Euros 106 000,00 € Variable Expenses per unit Euros 36,00 € Target profit Euros 23 000,00 € If Variable Expenses are reduced by : % 25% and if Total Fixed Expenses are increased by : % 15% Find sales in units to achieve target profit Units a. (23,000+106,000x(1/0.15))/(96-36x(1/0.25)) b. (23,000+106,000x(1+0.15))*(96-36x(1-0.25)) c. (23,000-106,000/(1+0.15))/(96-36x(1-0.25)) d. (23,000+106,000x(1+0.15))/(96-36x(1-0.25)) e. (23,000+106,000x(1+0.15))*(96+36x(1-0.25)) f. (23,000-106,000x(1+0.15))/(96-36x(1-0.25)) g. (23,000+106,000x(1/0.15))/(96-36x(1-0.25))
CVP 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…
Assume the following information: Sales Variable expenses Contribution margin Fixed expenses $87,600. $152,600. $94,500. Net operating income Multiple Choice $84,000. Amount $ 300,000 120,000 180,000 105,000 $ 75,000 Per Unit $ 40 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: 16 $24

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS