Universal Travel uses the contribution margin income statement internally. Universal's first quarter results are as follows: LOADING...(Click the icon to view the income statement.) Universal's relevant range is sales of between $ 105 comma 000 and $ 650 comma 000. Read the requirementsLOADING.... Requirement 1. Prepare contribution margin income statements at sales levels of $ 180 comma 000 and $ 420 comma 000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $ 180 comma 000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Universal Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss)
Universal Travel
Contribution Margin Income Statement
Three Months Ended March 31
Sales revenue
$450,000
Less: Variable expenses
171,000
Contribution margin
$279,000
Less: Fixed expenses
173,600
Operating income
$105,400
Contribution Margin ratio = Contribution margin / sales = 279000/450,000 = 62%
Variable cost ratio = (100-62)% = 38%
Sales @ 180,000
Sales revenue | 180000 |
Variable cost (180000*38%) | 68400 |
Contribution margin | 111600 |
Fixed cost | 173600 |
Operating loss | (62000) |
Sales @ 420,000
Sales revenue | 420000 |
Variable cost (420,000*38%) | 159000 |
Contribution margin | 261000 |
Fixed cost | 173600 |
Net operating income | 87400 |
Break even sales = Fixed cost / Contribution margin ratio
= 173600/62%
= 280000
Universal Travel uses the contribution margin income statement internally. Universal's first quarter results are as follows:...
CountrywideCountrywide Travel uses the contribution margin income statement internally. Countrywide'sCountrywide's first quarter results are as follows: LOADING... (Click the icon to view the income statement.) Countrywide'sCountrywide's relevant range is sales of between $ 140 comma 000$140,000 and $ 640 comma 000$640,000. Read the requirements LOADING... . Requirement 1. Prepare contribution margin income statements at sales levels of $ 210 comma 000$210,000 and $ 390 comma 000$390,000. (Hint: Use the contribution margin ratio.)Begin by preparing the contribution margin income statement at...
Global Travel uses the contribution margin income statement internally. Global's first quarter results are as follows: (Click the icon to view the income statement.) Global's relevant range is sales of between $130,000 and $640,000. Read the requirements Requirement 1. Prepare contribution margin income statements at sales levels of $250,000 and $440,000. (Hint: Use the contribution margin ratio) Begin by preparing the contribution margin income statement at the $250,000 level. (Round the variable expense rate to the nearest whole percent. Enter...
Northern Travel uses the contribution margin income statement internally Northern's first quarter results are as follows: (Click the icon to view the income statement) Northern's relevant range is sales of between $150,000 and $650,000. Read the requirements Northern Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue 180000 Less Variable expenses Contribution margin 172,200 Less: Fixed expenses Operating income (loss) mework: Homework Chapter 7 (MODULE 3) Save e: 0 of 1 pt HW Score: 0%, 0 of...
Countrywide Travel uses the contribution margin income statement internally. Countrywide's first quarter results are as follows: (Click the icon to view the income statement.) Countrywide's relevant range is sales of between $140,000 and $690,000 Read the requirements Prepare contribution margin income statements at sales levels of $170,000 and $400,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars. Countrywide Travel Contribution Margin Income Statement Three Month. Er Jed March 31 Sales revenue 425,000 Less: Variable expenses 85,000...
U r avelses the bution margin income statement internal Universal's fut Click the icon to view the income statement) Unsa's re trage is sales of between $140.000 and 5050 000 Question u re of Read the res vers Travel Contribution Margincome Stat Three Months Ended March Sales revence 210000 Le Valable expenses 73,500 Contribution margin $ 3.500 Les penses 100 Operating income dow) Now prepare the contenanc minus sono parentheses) e 5470 000 he h enewp owe Universal Travel This...
U r avelses the bution margin income statement internal Universal's fut Click the icon to view the income statement) Unsa's re trage is sales of between $140.000 and 5050 000 Question u re of Read the res vers Travel Contribution Margincome Stat Three Months Ended March Sales revence 210000 Le Valable expenses 73,500 Contribution margin $ 3.500 Les penses 100 Operating income dow) Now prepare the contenanc minus sono parentheses) e 5470 000 he h enewp owe Universal Travel This...
Pluto Travel Contribution Margin Income Statement Three Months Ended March 31, 2016 Net Sales Revenue $318,500 Variable Costs 111,475 Contribution Margin 207,025 Fixed Costs 170,000 Operating Income $37,025 For its top managers, Pluto Travel formats its income statement as follows: Pluto's relevant range is between sales of $256,000 and $362,000. 1. Calculate the contribution margin ratio. 2. Prepare two contribution margin income statements: one at the $256,000 sales level and one at the $362,000 sales level. (Hint: The proportion of...
An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $910, 000 Cost of goods sold Gross margin Selling and administrative expenses 645, 000 265,000 Selling $103,000 Administration 110,000 213,000 Net operating income $ 52,000 On average, a book sells for $65. Variable selling expenses are $6 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales...
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (12,000 units at $225 each) $ 2,700,000 Variable costs (12,000 units at $180 each) 2,160,000 Contribution margin $ 540,000 Fixed costs 360,000 Pretax income $ 180,000 1. Compute the company’s degree of operating leverage for 2019. 2. If sales decrease by 4% in 2020, what will be the company’s pretax income? 3. Assume sales for 2020 decrease...
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions. BARRY'S COFFEE CAKES Contribution Margin Income Statement 20,000 units 25,000 units Total Percents of Sales Per Unit Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Net operating income Total $150,000 se.000 100,000 30.000 $ 70,000 LI 1 Knowledge Check 01 What is the unit contribution margin? $7.50 $2.50 $5.00 $3.00 Knowledge Check 02 What is the contribution margin...