Question

Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.

Sales (6,600 units)	$	330,000
Variable expenses		211,200
Contribution margin		118,800
Fixed expenses		88,100
Net operating income	$	30,700

If the company sells 6,800 units, its net operating income should be closest to: (Do not round intermediate calculations.)

Brewer 8e Rechecks 2018-06-19

Multiple Choice

• $34,300

• $30,700

• $40,700

• $31,630

Answer 1

eu Date Page Punit _Following information of - 6600 units INCOME STATEMENT SALES [Revenue) 330,000 (211200) - Variable EXIDENSES 1,18,800 CONTRIBUTION MARGIN FPXES EXPENSES ( 88100) NET DASBATING INCOME e calculation of Per Unit Vacciable cost and - Per unit Sales : 30700 Sales — 330,000 — 50 pese condit 6600 Valuable cost - 211200 + 32 peel mit 6600 Contribution per unit =) Sale price pee unit Valuable cost peu unit in Epxed cost ciemains Same" isdespective of - volume of writs poodisced Babe - INCOME STATEMENT at 6800 coils. Sales 340 OOD - Variable Enpense 1217600) Contribution Movqin 122400_ - fined cost 88.100 Net Operating Income 34,300

50 Sales [6600 unit ] - Vasliable Empense GIVE INFORMATION.... Income STATEMENT. Given peration I PER unit) FOR 6,800 Unils 16800xso * 340,000 330.000 211200 32 32x6800 Lal2176 DO 18x6800 118 800 18 CONTRIBUTION 122400 - Fixed EXPENSE 88100 AHOTE 8810D NET operating 30700 34300 1. Income. Variable . Calculation of Pen unit Cost. g Sales → Sales a 330 000 a 50 pele ont. 6600 Variable a 211200 a 32 COST 5600 ? per unit - Sales - Vaniable Cost a Contribution Margini Notel = fixed Cost remains same for isrespective of volume of units produced & sold. → ANSWER : $ 34300. option

50 Sales [6600 unit ] - Vasliable Empense GIVE INFORMATION.... Income STATEMENT. Given peration I PER unit) FOR 6,800 Unils 16800xso * 340,000 330.000 211200 32 32x6800 Lal2176 DO 18x6800 118 800 18 CONTRIBUTION 122400 - Fixed EXPENSE 88100 AHOTE 8810D NET operating 30700 34300 1. Income. Variable . Calculation of Pen unit Cost. g Sales → Sales a 330 000 a 50 pele ont. 6600 Variable a 211200 a 32 COST 5600 ? per unit - Sales - Vaniable Cost a Contribution Margini Notel = fixed Cost remains same for isrespective of volume of units produced & sold. → ANSWER : $ 34300. option