Assume a selling price of $20 per unit, variable cost per unit of $12, and total...
Assume a selling price of $20 per unit, variable cost per unit
of $12, and total fixed cost of $500. If 200 units are sold,
calculate the contribution margin and the operating
income.
Homework Answers
Compute contribution margin:
| Selling price per unit | $20 |
| Less: Variable cost per unit | ($12) |
| Contribution margin per unit | $8 |
____________________________________________
Compute operating income:
| Total Contribution [200 units × $8] | $1,600 |
| Less: Fixed Cost | ($500) |
| Operating Income | $1,100 |
Dear student, Please feel free to ask any query regarding the solution. Give your valuable rating. Thank You!
Add Answer to:
Assume a selling price of $20 per unit, variable cost per unit
of $12, and total...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company's contribution format income statement for the most recent month is shown below: Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $186,000 93,000 93,000 44,000 $ 49,000 Per Unit $6.00 3.00 $3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO5-1, LO5-4) Meer Company's contribution format income statement for the most recent month is shown below. Per Unit $10.00 Sales (33.000 nits) Variable expenses Contribution margin Fixed expenses perating con Required: (Consider each case independently 1 What is the revised net operating income funit sales increase by 10%? 2 What is the revised net operating income of the selling price decreases by $150 per...
Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed...
Exercise 2-13 (Algo) Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO2-1, LO2-4] Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (32,000 units) $ 320,000 $ 10.00 Variable expenses 224,000 7.00 Contribution margin 96,000 $ 3.00 Fixed expenses 50,000 Net operating income $ 46,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 19%? 2....
Check Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed...
Check Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO5-1, LO5.4) Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $10.00 Sales (30,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 380,000 210,000 90,000 47,eee $ 43,000 $ 3.ee Required: (Consider each case independently 1. What is the revised net operating income if unit sales increase by 13%? 2. What is...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contributlon format Income statement for the most recent month is shown below Total Per Unit Sales (37,00e units) Variable expenses $ 333,eee 222,000 $9.ee 6.ee Contrifution margin 111,eee $ 3.00 Fixed expenses 5e,000 Net operating income- 61,e00 Required: (Consider each case independently 1 What is the revised net operating income if unit sales increase by 16%? 2 What is the...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Mill...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contribution format income statement for the most recent month is shown below: Total 328,000 Per Unit 8.00 Sales (41,000 units) Variable expenses 205,000 5.00 Contribution margin 3.00 123,000 Fixed expenses 41,000 Net operating income 82,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 10%? 2. What is the revised net...
Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense...
Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 20,000 $30 $4 $2 $40,000 $30,000 $24,000 $44,000 $180,000 2. Prepare a contribution format income statement Cherokee, Inc. Contribution Format Income Statement Sales. Variable expenses: Cost of goods sold. Selling expense Administrative expenses Fixed expenses: Selling expenses Administrative expenses... Net operating income ....
6. Assume total fixed costs of $249600, variable costs per unit of $6, and contribution margin...
6. Assume total fixed costs of $249600, variable costs per unit of $6, and contribution margin per unit of $4. What are the sales dollars required to earn a target net income of $78000 assuming a tax rate of 20%? A. $546000 B. $867750 C. $780000 D. $819000 6. Assume a sales price per unit of $20, variable cost per unit $10, and total fixed costs of $16200. If no units are sold, how much cost would the company incur?...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
Z Inc. manufactures a product with a selling price of $60 per unit. Direct Materials costs...
Z Inc. manufactures a product with a selling price of $60 per unit. Direct Materials costs $12 per unit. Direct Labor costs $11 per unit. Variable Manufacturing Overhead costs $6 per unit. Fixed Manufacturing Overhead costs $34,000 per month. Variable Selling and Administrative Costs $5 per unit. Fixed Selling and Administrative costs $17,000. a) Complete the month’s Contribution Margin Income Statement Budget for Z Inc., assuming that they plan to sell 10,000 units of product. TOTAL SALES VARIABLE COST CONTRIBUTION...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company's contribution format income statement for the most recent month is shown below: Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $186,000 93,000 93,000 44,000 $ 49,000 Per Unit $6.00 3.00 $3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO5-1, LO5-4) Meer Company's contribution format income statement for the most recent month is shown below. Per Unit $10.00 Sales (33.000 nits) Variable expenses Contribution margin Fixed expenses perating con Required: (Consider each case independently 1 What is the revised net operating income funit sales increase by 10%? 2 What is the revised net operating income of the selling price decreases by $150 per...
Check Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs (LO5-1, LO5.4) Miller Company's contribution format income statement for the most recent month is shown below: Per Unit $10.00 Sales (30,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 380,000 210,000 90,000 47,eee $ 43,000 $ 3.ee Required: (Consider each case independently 1. What is the revised net operating income if unit sales increase by 13%? 2. What is...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contributlon format Income statement for the most recent month is shown below Total Per Unit Sales (37,00e units) Variable expenses $ 333,eee 222,000 $9.ee 6.ee Contrifution margin 111,eee $ 3.00 Fixed expenses 5e,000 Net operating income- 61,e00 Required: (Consider each case independently 1 What is the revised net operating income if unit sales increase by 16%? 2 What is the...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contribution format income statement for the most recent month is shown below: Total 328,000 Per Unit 8.00 Sales (41,000 units) Variable expenses 205,000 5.00 Contribution margin 3.00 123,000 Fixed expenses 41,000 Net operating income 82,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 10%? 2. What is the revised net...
Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 20,000 $30 $4 $2 $40,000 $30,000 $24,000 $44,000 $180,000 2. Prepare a contribution format income statement Cherokee, Inc. Contribution Format Income Statement Sales. Variable expenses: Cost of goods sold. Selling expense Administrative expenses Fixed expenses: Selling expenses Administrative expenses... Net operating income ....
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
Most questions answered within 3 hours.
-
The free energy change for the following reaction at 25 °C, when
[Sn2+] = 1.17 M...
asked 11 minutes ago -
An MNE is this kind of industry when competition in one country
is essentially independent of...
asked 1 hour ago -
. For this set of questions, determine what
proportion of a normal distribution is located betweeneach...
asked 2 hours ago -
A college student is employed as a door-to-door newspaper
salesman. Historical data suggests that the student...
asked 3 hours ago -
MATLAB HW 11 problem using Switch Case and Input commands
Write a script file that calculates...
asked 2 hours ago -
Considering gravitational time dilation, calculate the time that
passes in Earth’s surface while 1 hour passes...
asked 3 hours ago -
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 4 hours ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 4 hours ago -
IN PYTHON ONLY !! Program 2: Re-work
program #5 (WeeklyHours) from the previous assignment such that...
asked 5 hours ago -
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 6 hours ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 7 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 7 hours ago