If the contribution margin is $5,000, variable cost is $4,000, and net operating income is $2,000, what is the fixed cost?
$9,000
$1,000
$3,000
$7,000
Net Operating Income =Contribution Margin - Fixed Cost
Fixed Cost =Contribution Margin - Net Operating Income
Fixed Cost =$5,000 - $2,000 =$3,000
So Option C is answer
If the contribution margin is $5,000, variable cost is $4,000, and net operating income is $2,000,...
QUESTION 12 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 If sales increase by 1,000 units, profit will increase by: $10,200 $5,000 $12,750 $9,750
Units 1,000 2,000 3,000 4,000 5,000 6.000 7.000 8,000 9.000 10.000 11,000 Rent Expense $5,000 5,000 5,000 7,000 7,000 7.000 7,000 7,000 7.000 10.000 10.000 10.000 Direct Materials $4,000 6,000 7,800 8,000 10,000 12,000 14.000 16.000 18.000 23,000 28.000 36.000 Determine the relevant range of activity for this product. Relevant range e Textbook and Media o t em e Textbook and Media Calculate the variable cost per unit within the relevant range. Variable cost $ per unit e Textbook and...
Challenge company has a variable cost of $7 per unit, net income of $4,000 and a contribution margin ration of 20%. Answer the following question assuming the contribution margin is $7,000. By what percent can sales decline and the company still breakeven?
Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units) $40,000 Variable expenses 30,000 Contribution margin 10,000 Fixed expenses 7,000 3,000 Net operating income If the variable cost per unit increases by $1, spending on advertising increases by $2,000, and unit sales increase by 50 units, the net operating income would be closest to:
5) Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (7,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 210,000 136,500 73,500 67,200 6,300 The number of units that must be sold to achieve a target profit of $31,500 is closest to 3) Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. $ Sales (1,000...
3) Thomason Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 40,000 30,000 10,000 7,000 3,000 If the variable cost per unit increases by $1, spending on advertising increases by $2,000, and unit sales increase by 50 units, the net operating income would be closest to:
Traditional Format Sales Cost of goods sold $12,000 Selling and administrative expenses: Selling Administrative Net operating income $3,100 1,900 Contribution Format $12,000 Sales 6,000 Variable expenses 6,000 Cost of goods sold $6,000 Variable selling 600 Variable administrative 400 5,000 Contribution margin $ 1,000 Fixed expenses: Fixed selling 2,500 Fixed administrative 1,500 Net operating income 7,000 5,000 4,000 $ 1000 For a manufacturing company, the cost of goods sold would include some variable costs, such as direct materials, direct labor, and...
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
P6A - A High-Low Method Contribution Form Income Statement Orange Company Income Statements For the three months ended June 30, 202X big May Sales in units 7,000 10,000 April Small June 9,000 $ 280,000 $ 400,000 $360,000 210,000 300,000 270,000 $ 70,000 $ 100,000 $90,000 Sales Cost of goods sold Gross margin Operating expenses: Advertising Depreciation Rent Salaries and commissions Utilities Total operating expenses Net income $ 5,000 $ 5,000 $ 5,000 3,000 3,000 3,000 8,000 8,000 8,000 34,000 40,000...
Oslo Company prepared the following contribution format income statement 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 $ 20,000 13,000 7,000 3,780 $ 3,220 Foundational 5-5 5. If sales decline to 900 units, what would be the net operating income? Net operating income Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...