Homework Answers
Unit contribution margin = Selling price per unit - Variable cost per unit
Unit contribution margin = ($40,000 ÷ 1,000 units) - ($30,000 ÷ 1,000 units)
Unit contribution margin = $40 - $30
Unit contribution margin = $10
New unit contribution margin = Selling price per unit - New variable cost per unit
New unit contribution margin = $40 - ($30 + $1)
New unit contribution margin = $9
Contribution margin = 1,050 units × $9 = $9,450
Net operating income = Contribution margin - Fixed expenses
Net operating income = $9,450 - ($7,000 + $2,000)
Net operating income = $450
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3) Thomason Corporation has provided the following contribution format income statement. Assume that the following information...
Thomason Corporation has provided the following contribution format income statement. Assume that the following information is...
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:
5) Cassius Corporation has provided the following contribution format income statement. Assume that the following information...
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...
2) Carver Corporation produces a product which sells for $40. Variable manufacturing costs are $18 per...
2) Carver Corporation produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 15% of the selling price is paid on each unit sold. The contribution margin per unit is: 3) Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within...
Sjostrom Corporation has provided the following contribution format income statement. Assume that the following information i...
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
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 13,000 7,000 3,780 $ 3,220 Foundational 5-5 5. If sales decline to 900 units, what would be the net operating income? Net operating income Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
Stockmaster Corporation has provided the following contribution format income statement. Assume that the following information is...
Stockmaster Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $320,000 192,000 128,000 121,600 $ 6,400 The margin of safety in dollars is closest to: Multiple Choice $6,400 $16,000 $121,600
[The following information applies to the questions displayed below.) Oslo Company prepared the following contribution format...
[The following information applies to the questions displayed below.) Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Pixed expenses Net operating income $ 40,000 26.000 14,000 8,680 $ 5,320 5. If sales decline to 900 units, what would be the net operating income? Net operating income [The following information applies to the questions displayed below.)...
Sattler Corporation has provided the following contribution format income statement All questions concern situations that are...
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...
. Coultrap Corporation has provided the following contribution format income statement. Assume that the following in...
. 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 $...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses $25,100 13,700 Contribution margin Fixed expenses 11,400 7,752 Net operating income $ 3,648 Required: If the variable cost per unit increases by $0.80, spending on advertising increases by $1,300, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) Net...
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:
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...
2) Carver Corporation produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 15% of the selling price is paid on each unit sold. The contribution margin per unit is: 3) Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within...
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
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 13,000 7,000 3,780 $ 3,220 Foundational 5-5 5. If sales decline to 900 units, what would be the net operating income? Net operating income Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
Stockmaster Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $320,000 192,000 128,000 121,600 $ 6,400 The margin of safety in dollars is closest to: Multiple Choice $6,400 $16,000 $121,600
[The following information applies to the questions displayed below.) Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Pixed expenses Net operating income $ 40,000 26.000 14,000 8,680 $ 5,320 5. If sales decline to 900 units, what would be the net operating income? Net operating income [The following information applies to the questions displayed below.)...
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...
. 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 $...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses $25,100 13,700 Contribution margin Fixed expenses 11,400 7,752 Net operating income $ 3,648 Required: If the variable cost per unit increases by $0.80, spending on advertising increases by $1,300, and unit sales increase by 250 units, what would be the net operating income? (Do not round intermediate calculations.) Net...
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