B. 212,000 | |||
Revenue | $500,000 | $600,000 | ($500,000 x 1.2) |
Variable Costs | -$240,000 | -$288,000 | ($240,000 x 1.2) |
Contribution Margin | $260,000 | $312,000 | |
Fixed Costs | -$100,000 | -$100,000 | |
Net Income | $160,000 | $212,000 | |
QUESTION 15 Assume Monopoly Corporation provided the following forecasted contribution margin style income statement: Revenue Variable...
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 CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. $500,000 240,000 260,000 160,000 $100,000 $500,000 50,000 450,000 350,000 $100,000 Degree of operating leverage for each company is as follows: Degree of Operating Leverage 2.6 4.5 Armstrong Contador Assuming that sales revenue increases by 10%, the variable costing income statement for each company is as follows: Sales Revenue Variable Costs Contribution Margin Fixed...
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:
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
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
Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin Fixed cost Pretax income $3,136,000 2,352,000 $784,000 567.000 $ 217,000 Exercise 18-18 Evaluating strategies LO C2 Assume the company is considering investing in a new machine that will increase its fixed costs by $37,500 per year and decrease its variable costs by $10...
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,000 units at $300 each) $ 3,300,000 Variable costs (11,000 units at $240 each) 2,640,000 Contribution margin 660,000 Fixed costs 360,000 Pretax income $ 300,000 The marketing manager believes that increasing advertising costs by $125,000 in 2020 will increase the company’s sales volume to 12,400 units. Prepare a forecasted contribution margin income statement for 2020 assuming the...
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).