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Question 1 If the number of units sold increases (quantity increases), which of the following will NOT change? Sales O Variable costs O Fixed costs Contribution margin Question 2 Kelly's Karts, LLC reported the following data: Sales quantity 1,000 units; Sales $750 per unit; Variable costs $405 per unit; Fixed costs $258,750. What is breakeven in sales dollars? $750,000 $395,000 $345,000 $562,500 Question 3 2 pt Kelly's Karts, LLC reported the following Contribution Margin Income Statement. What is the effect...
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Question 3 2 pts Kelly's Karts, LLC reported the following data: Sales quantity 1,000 units; total sales $90,000; total variable costs $54,000; Fixed costs $28,000. Construct a Contribution Margin Income Statement and calculate the missing per unit amounts. What is the contribution margin per unit? $100 O $90 $54 $36 Question 5 2 Kelly's Karts, LLC reported the following data: Sales quantity 1,500 units; Sales $120 per unit; Variable costs $48 per unit; Fixed costs $93,000. What is the contribution...
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Question 1 Kelly's Karts, LLC reported the following data: Sales quantity 1,500 units; Sales $120 per unit; Variable costs $48 per unit; Fixed costs $93,000. What is total contribution margin? $93,000 $108,000 $180,000 $15,000 Question 2 2 pts Kelly's Karts, LLC reported the following data: Sales quantity 400 units; Sales $100 per unit: Variable costs $68 per unit; Fixed costs $6,000. They project a target profit of $4,000. What is target profit in units? 187.5 350.5 400 O 312.5 Question...
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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
$
25,000
Variable
expenses
17,500
Contribution
margin
7,500
Fixed
expenses
4,200
Net operating
income
$
3,300
1. What is the variable expense ratio?
2. What is the contribution margin per unit? (Round your
answer to 2 decimal places.)
3. What is the contribution margin ratio?
4. What is the
variable expense...
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Check Selling price Variable expenses Contribution margin Per Unit $ 90 63 $ 27 Percent of Sales 100% 70 - 1 of 2 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Book Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in...
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1.What is the contribution margin per unit?
2.What is the contribution margin ratio?
3.What is the variable expense ratio?
4.If sales increase to 1,001 units, what would be the increase
in net operating income?
5.If sales decline to 900 units, what would be the net
operating income?
6.If the selling price increases by $2.50 per unit and the
sales volume decreases by 100 units, what would be the net
operating income?
7.If the variable cost per unit increases by $1.50,...
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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...
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QUESTION 12 Herman's income statement is as follows: Sales (4,000 units) Less Variable Costs Contribution Margin $75,000 (24,000) $51,000 Less fixed costs (12,000) Net Income $39,000 If sales increase by 1,000 units, profit will increase by: $10,200 $5,000 $12,750 $9,750
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Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (9,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 297,000 171,000 126,000 55,100 $ 70,900 Per Unit $ 33.00 - 19.00 $ 14.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales...
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Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...
Question 1 If the number of units sold increases (quantity increases), which of the following will NOT change? Sales O Variable costs O Fixed costs Contribution margin Question 2 Kelly's Karts, LLC reported the following data: Sales quantity 1,000 units; Sales $750 per unit; Variable costs $405 per unit; Fixed costs $258,750. What is breakeven in sales dollars? $750,000 $395,000 $345,000 $562,500 Question 3 2 pt Kelly's Karts, LLC reported the following Contribution Margin Income Statement. What is the effect...
Question 3 2 pts Kelly's Karts, LLC reported the following data: Sales quantity 1,000 units; total sales $90,000; total variable costs $54,000; Fixed costs $28,000. Construct a Contribution Margin Income Statement and calculate the missing per unit amounts. What is the contribution margin per unit? $100 O $90 $54 $36 Question 5 2 Kelly's Karts, LLC reported the following data: Sales quantity 1,500 units; Sales $120 per unit; Variable costs $48 per unit; Fixed costs $93,000. What is the contribution...
Question 1 Kelly's Karts, LLC reported the following data: Sales quantity 1,500 units; Sales $120 per unit; Variable costs $48 per unit; Fixed costs $93,000. What is total contribution margin? $93,000 $108,000 $180,000 $15,000 Question 2 2 pts Kelly's Karts, LLC reported the following data: Sales quantity 400 units; Sales $100 per unit: Variable costs $68 per unit; Fixed costs $6,000. They project a target profit of $4,000. What is target profit in units? 187.5 350.5 400 O 312.5 Question...
Check Selling price Variable expenses Contribution margin Per Unit $ 90 63 $ 27 Percent of Sales 100% 70 - 1 of 2 Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Book Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in...
1.What is the contribution margin per unit?
2.What is the contribution margin ratio?
3.What is the variable expense ratio?
4.If sales increase to 1,001 units, what would be the increase
in net operating income?
5.If sales decline to 900 units, what would be the net
operating income?
6.If the selling price increases by $2.50 per unit and the
sales volume decreases by 100 units, what would be the net
operating income?
7.If the variable cost per unit increases by $1.50,...
QUESTION 12 Herman's income statement is as follows: Sales (4,000 units) Less Variable Costs Contribution Margin $75,000 (24,000) $51,000 Less fixed costs (12,000) Net Income $39,000 If sales increase by 1,000 units, profit will increase by: $10,200 $5,000 $12,750 $9,750
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (9,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 297,000 171,000 126,000 55,100 $ 70,900 Per Unit $ 33.00 - 19.00 $ 14.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales...
Questions: 1. What is the meaning of contribution margin ration? How is this ratio useful in planning business operations? 2. In all respects, Company A and Company B are identical except that Company A's costs are mostly variable whereas Company B's costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 3. What is the meaning of operating leverage? 4. What is the meaning of break-even point? Problem: Oslo Company prepared...