CALCULATION OF CONTRIBUTION MARGIN | ||||
PARTICULARS | AMOUNT | |||
Sales ($ 700,000 / 10,000) | $ 70 | |||
Less: Variable Cost ($ 300,000 / 10,000) | $ 30 | 0.428571429 | ||
Contribution Margin Per unit | $ 40 | |||
Answer = A) | ||||
CALCULATION OF THE BREAK EVEN POINT IN UNITS | ||||
Break Even point = Fixed Cost / Contribution Margin Ratio | ||||
Break Even point = | ||||
Fixed Cost = | $ 3,00,000 | |||
Divide By | "/" By | |||
Contribution Margin Per Unit = | $ 40 | |||
Break Even point = | 7500 | Units | ||
Answer Break even point in units = 7,500 Units | ||||
Answer = B) | ||||
Target profit after tax = | 150000 | |||
Target Profit Befor Tax = $ 150,000 X 100/60 = | 250000 | |||
Target Profit = ( Fixed Cost + target Income ) / Contribution Margin per unit | ||||
Target Profit = | ||||
Fixed Cost = | $ 3,00,000 | |||
Add: | "+ " | |||
Target Income = | $ 2,50,000 | |||
Equal to = | $ 5,50,000 | |||
Divide By | "/"By | |||
Contribution marrgin per unit | $ 40 | |||
Equal to = | 13,750.00 | Units | ||
Answer = 13,750 Units | ||||
Question 6: 1. The following is Allison Corporation's contribution format income statement for last month: Sales...
. The following is Allison Corporation's contribution format income statement for last month: Sales $700,000 Variable expenses 300,000 Contribution margin 400,000 Fixed expenses 300,000 Net operating income $100,000 The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. (a) How many units would the company have to break even? (b) How many units would the company have to sell to attain target profits of $150,000 after tax when tax rate is 40%?
The following is Allison Corporation's contribution format income statement for last month: Sales $700,000 Variable expenses 300,000 Contribution margin 400,000 Fixed expenses 300,000 Net operating income $100,000 The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. (a) How many units would the company have to break even? (b) How many units would the company have to sell to attain target profits of $150,000 after tax when tax rate is 40%?
Question 13 The following is Allison Corporation's contribution format income statement for last month: Sales: $900,000 Variable Expenses: $600,000 Contribution Margin: $300,000 Fixed Expenses: $150,000 Net Operating Income: $ ?????? The company has no beginning or ending inventories. The company produced and sold 15,000 units last month. as no beginning or ending inventories. The company produced and sold 10,000 units last month. What is the Company's Break-Even Sales in Units? 3750 640,000 7,500 450,000
Question 10 The following is Allison Corporation's contribution format income statement for last month: Sales: $900,000 Variable Expenses: $600,000 Contribution Margin: $300,000 Fixed Expenses: $150,000 Net Operating Income: $ ?2222? The company has no beginning or ending inventories. The company produced and sold 15,000 units last month. If the Company's Operating Income Increased by 20 % , what is the percentage increase in the Company's sales? 50 % 10% 2% 12%
The following is Allison Corporation's contribution format income statement for last month: Sales: $900,000 Variable Expenses: $600,000 Contribution Margin: $300,000 Fixed Expenses: $150,000 Net Operating Income: $ ?????? The company has no beginning or ending inventories. The company produced and sold 15,000 units last month. What is the Company's degree of operating leverage? Oo oo A Moving to another question will save this response.
1. The following is Jackie Corporation's contribution format income statement for last month: Sales $1,200,000 Variable expenses _800.000 Contribution margin 400,000 Fixed expenses 300,000 Net operating income $100.000 The company has no beginning or ending inventories and produced and sold 20,000 units during the month. Required: a. What is the company's contribution margin ratio? b. What is the company's break-even in units? c. If sales increase by 100 units, by how much should net operating income increase? d. How many...
The following is XYZ’s contribution format income statement for last month: Sales $600,000 Variable expenses 400,000 Contribution margin 200,000 Fixed expenses 100,000 Net operating income $100,000 The company has no beginning or ending inventories and produced and sold 10,000 units during the month. 1 What is the company's contribution margin ratio? 2 What is the company's contribution margin? 3 What is the company's break-even in units? 4 If sales increase by 200 units, by how much should net operating income...
Also, what is the companys margin of safety in units?
if
sales increases by 250 units, by how much should net operating
income increase?
jestlo.. 3 The following is Allison Corporation's contribution format income statement for last month: Sales: $900,000 Variable Expenses: $600,000 Contribution Margin: $300,000 Fixed Expenses: $150,000 Net Operating Income: $ ?????? The company has no beginning or ending inventories. The company produced and sold 15,000 units last mo What would be the sales dollars required in order...
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,700 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $287,100 156,600 130,500 54,400 $ 76,100 Per Unit $33.00 18.00 $15.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90...
Wright Corporation's contribution format Income statement for last month appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 87,000 35.400 51.600 16.200 $ 35,400 There were no beginning or ending Inventories. The company produced and sold 3,000 units during the month. The company has an opportunity to secure a special order of 870 units If It is willing to drop the selling price on these units to $27. Costs of securing the special order would be...