Contribution margin in 2020:
= Net operating income X Degrees of operating leverage
= $10,773 X 2.5
= $26,932.50
Units sales in 2020:
= $183,600 / $12
= 15,300 units
Contribution margin per unit:
= $26,932.50 / 15,300
= $1.76
Contribution margin in 2019:
= $10,260 X 2.5
= $25,650
Units sold in 2019:
= 25,650 / $1.76
= 14,571 units
Unit sales in 2019 = 14571
For 2019, selected results for a company are shown below: Price per unit Net operating income...
For 2019, selected results for a company are shown below: $ 15 $ 10,260 Price per unit Net operating income Degree of operating leverage 2.5 With no change in price or cost structure, the company expects the following for 2020: Sales Net operating income $ 183,600 $ 10,773 Given the information above, the number of units sold during 2019 must have been: (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sig comma. E.g.,...
Seved Help Save & Exit For 2019, selected results for a company are shown below: Price per unit Net operating income Degree of operating leverage $ 18 $ 10,260 2.5 With no change in price or cost structure, the company expects the following for 2020: Sales Net operating income $ 183,600 $ 10,773 Given the information above, the number of units sold during 2019 must have been: (All answers are whole numbers - unless specified otherwise. You should NOT include...
Savod A company is a manufacturer that completed numerous transactions during the month, some of which are shown below Help a. Manufacturing overhead costs incurred on account, $80,000. b. Depreciation was recorded for the month $35.000 (80% related to factory equipment, and the remainder related to seling administrative equipment). c. Prepaid insurance expired during the month $2,500 (75% related to production, and 25% related to selling and administra d. Applied $119,000 of manufacturing overhead to production during the month. e....
A manufacturer sold 6,900 units of its product at the price of $40 last year. The variable cost per unit was $24. Their degree of operating leverage was 4. What was the margin of safety in $) for this company last year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000...
Below is the contribution format income statement for a company 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 $ 55,000 33,000 22,000 14,960 $ 7,040 If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 200 units, what would be the new net operating income? (All answers are whole...
Below is the contribution format income statement for a company 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 $ 55,000 33,000 22,000 14,960 $ 7,040 If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 200 units, what would be the new net operating income? (All answers are whole...
A manufacturer sold 6,340 units of its product at the price of $40 last year. The variable cost per unit was $24. Their degree of operating leverage was 4. What was the margin of safety (in $) for this company last year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g.. you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000...
A producer of a single product had the following results for the year just ended: Unit Sales Margin of Safety in Units Net operating income 6,210 units 263 units 6,575 How much was fixed cost for the year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or...
A producer of a single product had the following results for the year just ended: Unit Sales Margin of Safety in Units Net operating income 6,220 units 263 units 6,575 $ How much was fixed cost for the year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease...
Seved Help Save & Exit Sul Below is the contribution format income statement for a company 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 $ 55,000 33,000 22,000 14,960 $ 7,040 If the variable cost per unit increases by $1, spending on advertising increases by $1,450, and unit sales increase by 210 units, what would be the new net...