Homework Answers
1. Degree of operating leverage = Contribution margin/Operating income
= 72,000/24,000 = 3
Increase in operating income = 3*8 = 24%
Option B
2. Break-even point = Fixed cost/Contribution margin per unit
1,700 = Fixed cost/(12-9)
Fixed cost/3 = 1700
Fixed cost = 1700*3 = 5100
Net income = Total Contribution margin - Fixed cost
= (3*3900) - 5100
= 6,600
Option B
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The following information applies to the questions displayed below Hudson Co. reports the contribution margin income...
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value: 2.40 points Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain...
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Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000 76,800 $ 16,200 Per Unit $ 20 14 $ 6 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $34,200? 3-b. Verify your answer by preparing a...
U YOu skipped this question in the previous attempt. Carver Packing Company reports total contribution margin of $58,560 and pretax net income of $24.400 for the current month. In the next month, the company expects sales volume to increase by 5%. The degree of operating leverage and the expected percent change in income, respectively, are: Multiple Choice 0 042 and 5 o 0 24 and 5 o o O 0.42 and 223 25 and 135 o < Prev 23 of...
MC Qu. 167 Morse Company reports total contribution... Morse Company reports total contribution margin of $70,490 pretax net income of $13,300 for the current month. The degree of operating leverage is Multiple Choice o o ок» o 119 o o24
The following information applies to the questions displayed below Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Soles (9,600 units at $225 coch) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Pretax income $2,160,000 1.228. $ 82.ee Assume the company is considering investing in a new machine that will increase its fixed costs by $40.500 per year and decrease its variable costs by...
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Hudson Co. reports the contribution margin income statement for 2019 below. Using this information, compute Hudson Co.'s (1) break-even point in units and (2) break-even point in sales dollars. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Pretax income $2,160,000 1,728,000 432,000 324,000 $ 108,000 Use the amounts shown on the contribution margin income statements below to compute the missing amounts...
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7 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000 75,000 $ 18,000 Per Unit $20 14 $ 6 25 oints eBook Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $34,200? 3-b. Verify your answer...
Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000 76,800 $ 16,200 Per Unit $ 20 14 $ 6 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $34,200? 3-b. Verify your answer by preparing a...
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