Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of...
Presented here is the income statement for Fairchild Co. for March:
| Sales | $ | 84,000 | |
| Cost of goods sold | 40,000 | ||
| Gross profit | $ | 44,000 | |
| Operating expenses | 31,500 | ||
| Operating income | $ | 12,500 | |
Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 33%.
Required:
a. Rearrange the preceding income statement to the contribution margin format.
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b. Calculate operating income if sales volume increases by 10%. (Do not round intermediate calculations.)
c. Calculate the amount of revenue required for Fairchild to break-even.
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Presented here is the income statement for Fairchild Co. for
March:
Sales
$
84,000
Cost of...
Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of...
Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of goods sold 41,000 Gross profit $ 43,000 Operating expenses 31,000 Operating income $ 12,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 27%. Required: a. Rearrange the preceding income statement to the contribution margin format. b. Calculate operating income if sales volume increases by 9%. (Do not round intermediate calculations.) c. Calculate the...
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Shown here is an income statement in the traditional format for a firm with a sales...
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Shown here is an income statement in the traditional format for a firm with a sales...
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Shown here is an income statement in the traditional format for a firm with a sales volume of 18,...
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Shown here is an income statement in the traditional format for a firm with a sales volume of 7,600 units. Cost formulas also are shown $34,800 21,000 $13 800 Revenues Cost of goods sold ($5,800+$2 00unit) Gross profit Selling ($1,160+50.11/unit) Administration ($3,750+0 25/unit) 1,996 5,650 $ 6,154 Operating income Required: a. Prepare an income statement in the contribution margin format Variable expenses Total variable expenses Fixed expenses Total fioxed expenses b. Calculate the contribution margin per unit and the contribution...
What am I missing?
$ 375,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost of goods sold $ 262,500 Selling expense + 18,750 Administrative expense 18,750 300.000 75.000 Contribution margin Fixed expenses Selling expense Administrative expense $ 37,500 15,000 Fixed manufacturing overhead Net operating income 52.500 22.500 $ Reg < Prey 5 of 8 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:...
Shown here is an income statement in the traditional format for a firm with a sales volume of 7,800 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,600+$2.25/unit) Gross profit Operating expenses $34,500 23,150 $11,350 Selling ($1,190 +$0.10/unit) Administration ($3,900 $0.20/unit) 1,970 5,460 $ 3,920 Operating income Required a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Revenue Variable expense Cost of goods sold Selling expenses Administrative expenses Total variable expenses Contribution...
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