Contribution margin ratio=Contribution margin/Sales
=(128,000/320,000)=0.4
Hence breakeven sales=(Fixed cost/Contribution margin ratio)
=121600/0.4=$304,000
Margin of safety=Total sales-Breakeven sales
=320,000-304,000
=$16,000
Stockmaster Corporation has provided the following contribution format income statement. Assume that the following information is...
5) Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (7,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 210,000 136,500 73,500 67,200 6,300 The number of units that must be sold to achieve a target profit of $31,500 is closest to 3) Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. $ Sales (1,000...
Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units) $40,000 Variable expenses 30,000 Contribution margin 10,000 Fixed expenses 7,000 3,000 Net operating income If the variable cost per unit increases by $1, spending on advertising increases by $2,000, and unit sales increase by 50 units, the net operating income would be closest to:
3) Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 40,000 30,000 10,000 7,000 3,000 If the variable cost per unit increases by $1, spending on advertising increases by $2,000, and unit sales increase by 50 units, the net operating income would be closest to:
. Coultrap Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range Sales (3,000 units) Variable expenses Contribution margin Fixed expenses 180,000 117.000 63,000 48,300 $ 14.700 Net operating income The contribution margin per unit is closest to: A) $21.00 C) $39.00 D) S4.90 B) $60.00 6. Carlton Corporation has two divisions: Delta and Echo. Data from the most recent month appear below: Echo Delta S 147,000 86,730 S 44,000 $...
por 18) Ploeger Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (4,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 240,000 156,000 84,000 81,900 2,100 The break-even point in dollar sales is closest to: A) $234,000 B) $237,900 C) $156,000 D) $0
Zaccaria Corporation has provided the following contribution format income statement. questions concern situations that are within the relevant range. Sales (5,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $300,000 240,000 60,000 58,800 $1,200 Required: What is the contribution margin ratio? (Show your computations). What is the break-even point in unit of sales? (Show your computations). What is the margin of safety in dollars? (Show your computations). What is the degree of operating leverage? (Show your computations).
L3 Enterprises, Inc. has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (4,000 units) $ 240,000 Variable expenses 156,000 Contribution margin 84,000 Fixed expenses 81,900 Net operating income $ 2,100 The break-even point in dollar sales is closest to: $156,000 $0 $237,900 $234,000
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January Sales (3,500 units) Variable expenses Contribution margin Fixed expenses Net operating income $94,500 41,580 52,920 40,700 $12,220 If the company sells 3,800 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Multiple Choice $52,920 $57456 $71,700 $13,267 Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the...
Sjostrom Corporation has provided the following contribution format income statement. Assume that the following information i Sales (7,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $280,000 182,000 98,000 84,000 $ 14,000 points If the variable cost per unit increases by $10, spending on advertising increases by $1,500, and unit sales increase by 15,800 un closest to: Choice O $5,700 $91,200 $114,100 ) $12,500
Sattler Corporation has provided the following contribution format income statement All questions concern situations that are within the relevant range. Sales (8,000 units) $480,000 Variable expenses 336.000 Contribution margin 144,000 Fixed expenses 142.200 Net operating income $1.800 Required: a. What is the contribution margin per unit? (1 mark) b. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 15% increase in sales? (1 mark) c. What is the break-even point in...