Question

Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming...

Basic Cost-Volume-Profit Concepts

Klamath Company produces a single product. The projected income statement for the coming year is as follows:

Sales (47,900 units @ $26.00) $1,245,400
Total variable cost 398,528
Contribution margin $ 846,872
Total fixed cost 914,056
Operating income $ (67,184)

Required:

1. Compute the unit contribution margin and the units that must be sold to break even.

Unit contribution margin $
Break-even units units

2. Suppose 10,000 units are sold above breakeven. What is the operating income?
$

3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue.

Contribution margin ratio %
Break-even sales revenue $

Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be?
$

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
Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement...
Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (60,000 units @ $23.00) $1,380,000 Total variable cost 372,600 Contribution margin $ 1,007,400 Total fixed cost 973,820 Operating income $ 33,580 Required: 1. Compute the break-even sales dollars. $ 2. Compute the margin of safety in sales dollars. $ 3. Compute the degree of operating leverage. 4. Compute the new operating income if sales are 20%...
Cost-Volume-Profit, Margin of Safety Victoria Company produces a single product. Last year’s income statement is as...
Cost-Volume-Profit, Margin of Safety Victoria Company produces a single product. Last year’s income statement is as follows: Victoria Company Contribution Margin Income Statement For the Last Year 1 Sales (29,000 units) $1,218,000.00 2 Variable cost 812,000.00 3 Total contribution margin $406,000.00 4 Fixed cost 300,000.00 5 Operating income $106,000.00 Required: 1. Compute the break-even point in units and sales dollars calculated using the break-even units. 2. What was the margin of safety for Victoria last year in sales dollars? 3....
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $3,331,250 $41.00 Total variable cost 999,375 12.30 Contribution margin $ 2,331,875 $ 28.7 Total fixed cost 1,009,369 Operating income $ 1,322,506 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $2,030,000 $40.00 Total variable cost 568,400 11.20 Contribution margin $ 1,461,600 $ 28.8 Total fixed cost 539,980 Operating income $ 921,620 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $3,150,000 $45.00 Total variable cost 819,000 11.70 Contribution margin $2,331,000 $ 33.3 Total fixed cost 819,000 Operating income $1,512,000 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. ______ units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $1,700,000 $25.00 Total variable cost 476,000 7.00 Contribution margin $ 1,224,000 $ 18 Total fixed cost 504,560 Operating income $ 719,440 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $3,543,500 $38.00 Total variable cost 1,133,920 12.16 Contribution margin $ 2,409,580 $ 25.84 Total fixed cost 1,020,528 Operating income $ 1,389,052 Required: . Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $11,700,000 Total variable cost 8,190,000 Contribution margin $3,510,000 Total fixed cost 2,254,200 Operating income $1,255,800 Required: 1(a). Compute variable cost per unit. Round your answer to the nearest cent. $per unit 1(b). Compute contribution margin per unit. Round your answer to the nearest cent. $per unit...
Hide or show questions Progress:10/29 items Calculator Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of...
Hide or show questions Progress:10/29 items Calculator Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 9,000,000 Total variable cost 5,310,000 Contribution margin $ 3,690,000 Total fixed cost 2,476,400 Operating income $ 1,213,600 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $per unit 1(b). Compute contribution margin per...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 11,700,000 Total variable cost 6,669,000 Contribution margin $ 5,031,000 Total fixed cost 2,871,024 Operating income $ 2,159,976 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT