The following is Arcadia Corporation's contribution month: 1400000 Sales Variable expenses 1,050,000 Contribution margin 350,0000 Fixed...
Wright Corporation's contribution format Income statement for last month appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 87,000 35.400 51.600 16.200 $ 35,400 There were no beginning or ending Inventories. The company produced and sold 3,000 units during the month. The company has an opportunity to secure a special order of 870 units If It is willing to drop the selling price on these units to $27. Costs of securing the special order would be...
Serfass Corporation's contribution format income statement for July appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income $369,000 147,600 221,400 55,350 $166,050 The degree of operating leverage is closest to: Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $31,000 and variable expenses of $10,780. Product X96N had sales of $44,000 and variable expenses of $18,470. The fixed expenses of the entire company were $46,060. The break-even point for...
1. The following is Jackie Corporation's contribution format income statement for last month: Sales $1,200,000 Variable expenses _800.000 Contribution margin 400,000 Fixed expenses 300,000 Net operating income $100.000 The company has no beginning or ending inventories and produced and sold 20,000 units during the month. Required: a. What is the company's contribution margin ratio? b. What is the company's break-even in units? c. If sales increase by 100 units, by how much should net operating income increase? d. How many...
Summer Fun manufactures flotation vests in Charlotte, North Carolina. Summer Fun's contribution margin income statement for the most recent month contains the following data: (Click the icon to view the cost information.) Suppose Boats-n-More Cruiselines wants to buy 5,700 vests from Summer Fun. Acceptance of the order will not require any variable selling and administrative expenses. The special order will not affect foxed expenses. The Summer Fun plant has enough unused capacity to manufacture the additional vests. Boats - n-More...
Consider the following information: Sales (5,000 units) Less: Variable expenses Contribution Margin Less: Fixed expenses Net Income $500,000 225,000 275,000 125,000 $150,000 1. a What is the company's contribution margin ratio? 10% 45% 55% 100% on 1 out of 1.0 question Criselda Company has provided detail on a variety of costs for Q4: • Factory supplies: $9,100 • Administrative salaries: $97,500 • Direct materials: $153,500 • Sales staff salaries: $93,500 • Factory depreciation: $48,700 • Corporate headquarters building rent: $48,500...
Question 1: Special order Sales volume in units 80 Revenue $8,000 Variable costs $1,600 Contribution margin $6,400 Fixed costs $1,300 Profit $5,100 Special order: A client wants to buy 30 units at a discounted price of $30 per unit. This is a one-time deal (i.e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order: status...
The following is Allison Corporation's contribution format income statement for last month: Sales: $900,000 Variable Expenses: $600,000 Contribution Margin: $300,000 Fixed Expenses: $150,000 Net Operating Income: $ ?????? The company has no beginning or ending inventories. The company produced and sold 15,000 units last month. What is the Company's degree of operating leverage? Oo oo A Moving to another question will save this response.
Question 1: Special order Sales volume in units 90 Revenue $6,300 Variable costs $900 Contribution margin $5,400 Fixed costs $1,600 Profit $18 Special order: A client wants to buy 10 units at a discounted price of $30 per unit. This is a one-time deal (l.e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order: status...
10.Gayne Corporation's contribution margin ratio is 12% and its fixed monthly expenses are $84.000. If the company's sales for a month are $738,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. A) $88,560 B)$4,560 C) $565,440 D) $654,000 11.Product Y sells for $15 per unit, and has related variable expenses of $9 per unit. Fixed expenses total $300,000 per year. How many units of Product Y must be...
Question 1: Special order Sales volume in units 90 Revenue $8,100 Variable costs $2,700 Contribution margin $5,400 Fixed costs $1,600 Profit $3,800 Special order: A client wants to buy 40 units at a discounted price of $40 per unit. This is a one-time deal (i.e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order: status...