Question

PUIULUU Mall FILIUM FUI Call Clawuuyudl Une Saved Sorin Inc., a company that produces and sells a single product, has pro statement for January. Sales (4,200 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 155,400 100,800 54,600 42,400 $ 12,200 If the company sells 4,600 units, its total contribution margin should be clos Multiple Choice Prex 1 of 10 !!! Next > 38101 1021....jpg" 2 Premium Ch 7....pptx a ECO_251_Chap...c... A 0.19 0.12 0. 2 357205 0.44 1.492926 0.57 1.289345 0.48 0814323 0.4 0.542882 0.3 0.339301

Answer 1

Sorin inc.

Contribution per unit = Contribution margin / units sold

= $ 54,600 / 4,200 units = $ 13 per unit

If company sells 4,600 units

Contribution margin = units sold × contribution per unit

= 4,600 units × $ 13 per unit

= $ 59,800

Contribution margin closed to $ 59,800

Creswell corporation:

Net income when sales are $ 95,000

Net income = (Sales × contribution margin ratio) - fixed cost

= (95,000 × 56%) - 29,000

= 53,200 - 29,000

= $ 24,200

Net income would be $ 24,200, hence option "2" is valid.