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 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 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. $0 $0 b. Calculate operating income if sales volume increases by 10%. (Do not round intermediate calculations.) c....
Presented here is the income statement for Big Shot Inc for the month of May Sales...
Presented here is the income statement for Big Shot Inc for the month of May Sales Cost of goods sold Gross profit Operating expenses Operating loss $60,5ee 50.000 $19,50 13,700 $(3,200) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 18%. Required: a Rearrange the preceding income statement to the contribution margin format b. If sales increase by 15% what will be the firm's operating income for loss)? c. Calculate...
Shown here is an income statement in the traditional format for a firm with a sales...
Shown here is an income statement in the traditional format for a firm with a sales volume of 18,000 units: Revenues $ 144,000 Cost of goods sold ($9,000 + $2.80/unit) 59,400 Gross profit $ 84,600 Operating expenses: Selling ($2,250 + $0.85/unit) 17,550 Administration ($4,900 + $0.35/unit) 11,200 Operating income $ 55,850 Required: Prepare an income statement in the contribution margin format. Calculate the contribution margin per unit and the contribution margin ratio. Calculate the firm's operating income (or loss) if...
Shown here is an income statement in the traditional format for a firm with a sales...
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...
Shown here is an income statement in the traditional format for a firm with a sales...
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...
Omar Company prepared the following contribution format income statement based on 100,000 units of sales. Sales............
Omar Company prepared the following contribution format income statement based on 100,000 units of sales. Sales......... ...$3,000,000 Variable expenses. .1,800,000 Contribution margin... ..1,200,000 Fixed expenses.... ...900,000 Net operating income... 300,000 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the variable expense ratio? 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the net...
Shown here is an income statement in the traditional format for a firm with a sales...
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: Revenues $ 34,900 Cost of goods sold ($5,700 + $2.15/unit) 22,040 Gross profit $ 12,860 Operating expenses: Selling ($1,150 + $0.08/unit) 1,758 Administration ($3,650 + $0.20/unit) 5,170 Operating income $ 5,932 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. (Do...
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
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Shown here is an income statement in the traditional format for a firm with a sales volume of 18,...
Shown here is an income statement in the traditional format for a firm with a sales volume of 18,000 units $234,000 63,700 $170,300 Revenues Cost of goods sold ($11,500+$2.90/unit) Gross profit Operating expenses 20,300 12,100 $137,900 Selling ($2,300+$1.00/unit) Administration ($4,900+ $0.40/unit) Operating income Required: a. Prepare an income statement in the contribution margin format Contribution Margin Income Statement Variable expenses Total variable expenses Fixed expenses Total fixed expenses b. Calculate the contribution margin per unit and the contribution margin ratio....
What am I missing? $ 375,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost...
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:...
Presented here is the income statement for Big Shot Inc for the month of May Sales Cost of goods sold Gross profit Operating expenses Operating loss $60,5ee 50.000 $19,50 13,700 $(3,200) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 18%. Required: a Rearrange the preceding income statement to the contribution margin format b. If sales increase by 15% what will be the firm's operating income for loss)? c. Calculate...
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...
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...
Omar Company prepared the following contribution format income statement based on 100,000 units of sales. Sales......... ...$3,000,000 Variable expenses. .1,800,000 Contribution margin... ..1,200,000 Fixed expenses.... ...900,000 Net operating income... 300,000 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the variable expense ratio? 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the net...
Shown here is an income statement in the traditional format for a firm with a sales volume of 18,000 units $234,000 63,700 $170,300 Revenues Cost of goods sold ($11,500+$2.90/unit) Gross profit Operating expenses 20,300 12,100 $137,900 Selling ($2,300+$1.00/unit) Administration ($4,900+ $0.40/unit) Operating income Required: a. Prepare an income statement in the contribution margin format Contribution Margin Income Statement Variable expenses Total variable expenses Fixed expenses Total fixed expenses b. Calculate the contribution margin per unit and the contribution margin ratio....
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:...
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