Warsaw Co. has $40,000 sales of a product with a contribution margin ratio of 60% and...
Warsaw Co. has $40,000 sales of a product with a contribution margin ratio of 60% and fixed costs of $10,000. If the contribution margin ratio goes down to 45% and fixed costs stay the same, what level of sales is required to keep the same net income from the product?
Homework Answers
| Sales | 40000 |
| X Contribution margin ratio | 60% |
| Contribution margin | 24000 |
| Less: Fixed costs | 10000 |
| Current net income | 14000 |
| Fixed costs | 10000 |
| Add: Net income | 14000 |
| Required Contribution margin | 24000 |
| Divide by Contribution margin ratio | 45% |
| Level of sales required to keep the same net income | 53333 |
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Warsaw Co. has $40,000 sales of a product with a contribution
margin ratio of 60% and...
1 Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 20 points The...
1 Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 20 points The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $500 each. The company has a 25% Income tax rate. eBook Print $ 17,000 82,000 26,000 References 15,000 Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions...
Ch 18 Homework 1 Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1...
Ch 18 Homework 1 Problem 18-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $500 each. The company has a 25 % Income tax rate. 166 points Variable production costs Plastic for casing Wages of assenbly workers Drun stands $ 17,000 82,000 26,000 eBook Variable selling costs Sales...
Jilk Inc.'s contribution margin ratio is 60% and its fixed monthly expenses are $42,500. Assuming that...
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Jilk Inc.'s contribution margin ratio is 60% and its fixed monthly expenses are $42,500. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $127,000? Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income $764,400 445,200 319,200 250,900 $ 68,300 If the...
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