Homework Answers
Sales for for 4,000 units = $75,000
Selling price per unit = 75,000/4,000
= $18.75
Variable costs for 4,000 units = 24,000
Variable cost per unit = 24,000/4,000
= $6
Sales units = 4,000
Increase in units = 1,000
New units = 4,000+1,000
= 5,000
| Total amount | |
| Sales (5,000) | $93,750 |
| Less: Variable costs | (30,000) |
| Contribution margin | $63,750 |
| Less: fixed costs | (12,000) |
| Net income | $51,750 |
If sales increase by 1,000 units , profit will increase by (51,750-39,000) $12,750
Third option is correct.
Please give a positive rating if you are satisfied with this solution and if you have any query kindly ask.
Thanks!!!
Add Answer to:
QUESTION 12 Herman's income statement is as follows: Sales (4,000 units) Less Variable Costs Contribution Margin...
QUESTION 23 Herman's income statement is as follows: Sales (4,000 units) Less Variable Costs Contribution Margin...
QUESTION 23 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 What is the unit contribution margin? $10.20 $12.00 $9.75 $12.75
c) Hanna's income statement is as follows: Sales (10,000 units) Less variable costs Contribution margin Less...
c) Hanna's income statement is as follows: Sales (10,000 units) Less variable costs Contribution margin Less fixed costs Net income $175,000 - 68,000 $107.000 - 36.000 $ 71.000 If sales decrease by $35,000, profits will (Points 2.0): d) Hanna's income statement is as follows: Sales (10,000 units) Less variable costs Contribution margin Less fixed costs Net income $117,000 - 68,000 $49,000 - 36.000 $ 13,000 What is the break-even point in units and in sales dollars? (Points 1.0): e) Using...
Whammo’s income statement is as follows: Sales (10,000 units) $90,000 Less variable costs - 38,000 Contribution...
Whammo’s income statement is as follows: Sales (10,000 units) $90,000 Less variable costs - 38,000 Contribution margin $52,000 Less fixed costs - 24,000 Net income $ 28,000 If sales volume increases by 10%, profits will:
E20-9 Uller Company's most recent contribution margin format income statement follows: Sales (20,000 units) Less: Variable...
E20-9 Uller Company's most recent contribution margin format income statement follows: Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses I Profit Total $300,000 180,000 120,000 70,000 $50,000 Per Unit $15.00 9.00 $ 6.00 Management is considering the following independent action to increase profit: 1. Increase selling price by 15% with no change in total variable costs. 2. Reduce variable costs to 50% of sales. 3. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned...
Wesley’s contribution margin income statement is as follows: Sales (10,000 units) $150,000 Less variable COGS -...
Wesley’s contribution margin income statement is as follows: Sales (10,000 units) $150,000 Less variable COGS - 40,000 Less variable selling cost - 8,000 Contribution margin $102,000 Less fixed COGS - 18,000 Less fixed selling cost - 6,000 Net income $ 78,000 What GROSS MARGIN would appear on a TRADITIONAL income statement?
Pacheco Pachinko Manufacturing Income Statement for the Month Ending February 28, 2017 120,000 Sales (4,000 units...
Pacheco Pachinko Manufacturing Income Statement for the Month Ending February 28, 2017 120,000 Sales (4,000 units at $30 each) Less Manufacturing Costs Direct Material Direct Labor Variable Factory Overhead Fixed Factory Overhead 24,000 30,000 6,000 15,000 75,000 Gross Margin 45,000 Less Selling & Admin Expense Variable Selling & Admin Fixed Selling & Admin 12,000 21,000 33,000 12,000 Net Operating Income Contribution Margin Format Income Statement Sales
The following is Alsatian Corporation’s contribution format income statement from last month: Sales(2000 units x $70) $140,000 Less: Variable Costs 84,000 Contribution Margin 56,000 Less: Fixed Expenses 24,000 Operating In
The following is Alsatian Corporation’s contribution format income statement from last month: Sales(2000 units x $70) $140,000 Less: Variable Costs 84,000Contribution Margin 56,000Less: Fixed Expenses 24,000Operating Income $32,000The company has no beginning or ending inventories and produced and sold 2,000 units during the month. Required:A/ What is the company’s break-even sales in $(2) B/ If the sales volume increases by 10% and variable costs/unit decreases by $2.00, what will the new operating income be? Produce a...
A contribution margin income statement organizes costs by behavior
Contribution Margin Income StatementA contribution margin income statement organizes costs by behavior (variable or fixed), rather than by function (operating, selling, or administrative). The contribution margin is the difference between sales and variable expenses .Byron Manufacturing has one product that sells for $24.00 per unit. The company estimates fixed costs at $6,000, direct materials at $4.00 per unit, direct labor at $5.00 per unit, and variable overhead costs at $3.00 per unit.Fill in the contribution margin income statement when 730...
Zeta Corp's most recent income statement is given below. Sales (8,000 units) Less variable expenses Contribution...
Zeta Corp's most recent income statement is given below. Sales (8,000 units) Less variable expenses Contribution margin Less fixed expenses Net income $160,000 (68,000) 92,000 (50,000) $ 42,000 Required: a. Contribution margin % per unit is b. If sales are doubled to $240,000, total variable costs will equal C. If sales are doubled to $240,000, total fixed costs will equal d. If 20 more units are sold, profits will increase to
LUDO m Uller Company's most recent contribution margin format income statement follows: Per Unit $15.00 9.00...
LUDO m Uller Company's most recent contribution margin format income statement follows: Per Unit $15.00 9.00 Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Profit Total $300,000 180,000 120,000 70,000 $ 50,000 $ 6.00 management is considering the following independent action to increase profit: increase selling price by 15% with no change in total variable costs. 2 Reduce variable costs to 50% of sales. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned to...
QUESTION 23 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 What is the unit contribution margin? $10.20 $12.00 $9.75 $12.75
c) Hanna's income statement is as follows: Sales (10,000 units) Less variable costs Contribution margin Less fixed costs Net income $175,000 - 68,000 $107.000 - 36.000 $ 71.000 If sales decrease by $35,000, profits will (Points 2.0): d) Hanna's income statement is as follows: Sales (10,000 units) Less variable costs Contribution margin Less fixed costs Net income $117,000 - 68,000 $49,000 - 36.000 $ 13,000 What is the break-even point in units and in sales dollars? (Points 1.0): e) Using...
E20-9 Uller Company's most recent contribution margin format income statement follows: Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses I Profit Total $300,000 180,000 120,000 70,000 $50,000 Per Unit $15.00 9.00 $ 6.00 Management is considering the following independent action to increase profit: 1. Increase selling price by 15% with no change in total variable costs. 2. Reduce variable costs to 50% of sales. 3. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned...
Pacheco Pachinko Manufacturing Income Statement for the Month Ending February 28, 2017 120,000 Sales (4,000 units at $30 each) Less Manufacturing Costs Direct Material Direct Labor Variable Factory Overhead Fixed Factory Overhead 24,000 30,000 6,000 15,000 75,000 Gross Margin 45,000 Less Selling & Admin Expense Variable Selling & Admin Fixed Selling & Admin 12,000 21,000 33,000 12,000 Net Operating Income Contribution Margin Format Income Statement Sales
Zeta Corp's most recent income statement is given below. Sales (8,000 units) Less variable expenses Contribution margin Less fixed expenses Net income $160,000 (68,000) 92,000 (50,000) $ 42,000 Required: a. Contribution margin % per unit is b. If sales are doubled to $240,000, total variable costs will equal C. If sales are doubled to $240,000, total fixed costs will equal d. If 20 more units are sold, profits will increase to
LUDO m Uller Company's most recent contribution margin format income statement follows: Per Unit $15.00 9.00 Sales (20,000 units) Less: Variable expenses Contribution margin Less: Fixed expenses Profit Total $300,000 180,000 120,000 70,000 $ 50,000 $ 6.00 management is considering the following independent action to increase profit: increase selling price by 15% with no change in total variable costs. 2 Reduce variable costs to 50% of sales. Reduce fixed costs by $20,000. Instructions Calculate the profit to be earned to...
Most questions answered within 3 hours.
-
Experimental studies of cancer often use strains of animals that
have a naturally high incidence of...
asked 3 minutes ago -
Sociology Question Emile Durkheim
What role does mass media play in the lives of contemporary
citizens?...
asked 8 minutes ago -
Why would you silence gene expression for both wild-type and
mutants? I am on a question...
asked 17 minutes ago -
While all of the elements below are helpful, Booth et al. (2008)
emphasize that it is...
asked 21 minutes ago -
2. Use the three-step method to analyze the effects of the event
on the equilibrium price...
asked 22 minutes ago -
Draw a Venn diagram of three domains of life and explain.
asked 26 minutes ago -
In testing a new drug, researchers found that 5% of all patients
using it will have...
asked 54 minutes ago -
List the six general types of information management systems,
and give one logistics application to each...
asked 45 minutes ago -
XYZ corporation uses statistical quality control to monitor the
quality of their product. They have determined...
asked 49 minutes ago -
If a liquid
contains 60% sugar and 40% water through out its composition then
what is...
asked 57 minutes ago -
The data in set A represents prices (with tax included) of a
large cup of regular...
asked 1 hour ago -
How do neuropsychological assessments provide information about
impairment? How could this information be misused?
asked 59 minutes ago