Question

XYZ Inc. has provided to you an income statement using the contribution format. Sales (1,000 units)       ...

XYZ Inc. has provided to you an income statement using the contribution format.

Sales (1,000 units)              $    400,000
Variable Expenses                     300,000
Contribution Margin               100,000
Fixed Expenses                          70,000
Net Operating Income        $         30,000

(The activity is within the relevant range).

If advertising spending increases by $20,000, the variable cost per unit increases by $10, and unit sales increase by 50 units, the net operating income would be closest to:

A.$4,500

B.$21,500

C.$9,450

D. $10,000

Flank Inc. has provided to you an income statement using the contribution format.

Sales (4,000 units)              $    240,000
Variable Expenses                     156,000
Contribution Margin                  84,000
Fixed Expenses                          81,900
Net Operating Income        $            2,100

(The activity is within the relevant range).

What is the break-even point expressed in dollar sales?

a.$0

B.$237,900

C.$234,000

D. $156,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
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 $ 23,900       Variable expenses 13,300       Contribution margin 10,600       Fixed expenses 7,632       Net operating income $ 2,968         Required: What is the degree of operating leverage Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range...
Panther Corporation has provided the following contribution format income statement Assume that the relevant range Sales...
Panther Corporation has provided the following contribution format income statement Assume that the relevant range Sales 8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 185,000 110,600 $ 4,400 The margin of safety in dollars is closest to: Select one: a: 6550 b 124858 c 16175 d 11478
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
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 $ 105,000 Variable expenses 73,500 Contribution margin 31,500 Fixed expenses 27,720 Net operating income $ 3,780 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
Valdez Corporation has provided the following contribution format income statement. Assume that the following information is...
Valdez Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units) $ 500,000 Variable expenses 200,000 Contribution margin 300,000 Fixed expenses 300,000 Net operating income $ 0 If the company were to sell 20 additional units, by how much would the net operating income increase? A) $10,000 B) $6,000 C) $60,000 D) cannot be determined with the information given.
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
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 $105,000 Variable expense 73,500 Contribution margin 31,500 Fixed expenses 27,720 Net operating income $3,780 If sales decline to 900 units, what would be the net operating income? Net operating income- If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the...
Warrix Corporation has provided the following contribution format income statement. Assume that the following information is...
Warrix Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) $ 150,000 Variable expenses 90,000 Contribution margin 60,000 Fixed expenses 55,000 Net operating income $ 5,000 Answer the follow questions. If sales increase to 3,100 units, net operating income would be closest to: If sales increase to 3,100 units, the breakeven point in units would (increase, decrease or stay the same) If sales increase to 3,100 units,...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
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 $ 75,000 Variable expenses 45,000 Contribution margin 30,000 Fixed expenses 22,800 Net operating income $ 7,200 5. If sales decline to 900 units, what would be the net operating income? 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
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 $ 50,000 Variable expenses 27,500 Contribution margin 22,500 Fixed expenses 14,850 Net operating income $ 7,650 Required: 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,400, and unit sales increase by 180 units, what would be the net operating income? 8. What is the...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
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 $ 105,000 Variable expenses 73,500 Contribution margin 31,500 Fixed expenses 27,720 Net operating income $ 3,780 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
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 $ 22,700       Variable expenses 12,900       Contribution margin 9,800       Fixed expenses 8,232       Net operating income $ 1,568     5. If sales decline to 900 units, what would be the net operating income? (Do not round intermediate calculations.) 6. If the selling price increases by $1.60 per unit and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT