Question

Q2. The following is Addison Corporation's contribution format income statement for last month: sales..................................$1,000,000 variable expenses........_700,000________...

Q2. The following is Addison Corporation's contribution format income statement for last month:

sales..................................$1,000,000

variable expenses........_700,000________

contribution margin.......300,000

fixed expenses----------_____180,000______

net operating income........$120,000

The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

1. CM: 2. Unit CM: 3. CMR: 4. BEP sales(units): 5. BEP sales($):

6. If the company sells 100 more units, net operating income will increase by $_______________.

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
The following is Allison Corporation's contribution format income statement for December 2014: Sales $800,000 Less: variable...
The following is Allison Corporation's contribution format income statement for December 2014: Sales $800,000 Less: variable expenses 300,000 Contribution margin 500,000 Less: fixed expenses 400,000 Operating income $100,000 The company had no beginning or ending inventories. The company produced and sold 10,000 units in December. Required: Assuming no change in either the cost structure or the average selling price, prepare a contribution format income statement for a month Allison Corporation reports no before-tax profit or loss: Short AnswerToolbar navigation opens...
The following is TJLS Corporation's contribution format income statement for last month: Sales $1,200,000 Less: Variable...
The following is TJLS Corporation's contribution format income statement for last month: Sales $1,200,000 Less: Variable Expenses: $800,000 Contribution Margin: $400,000 Less: Fixed Expenses: $300,000 Operating Income: $100,000 5. What is the company's margin of safety in dollars? 6. What is the company's degree of operating leverage? Explain how a company could use this number in terms a non-accountant could understand. 7. If the tax rate is 30%, how many units must be sold to attain an after-tax profit of...
Serfass Corporation's contribution format income statement for July appears below: Sales $ 448,500 Variable expenses 224,250...
Serfass Corporation's contribution format income statement for July appears below: Sales $ 448,500 Variable expenses 224,250 Contribution margin 224,250 Fixed expenses 58,310 Net operating income $ 165,940 The degree of operating leverage is closest to: Multiple Choice 0.37 0.74 2.00 1.35
A company’s contribution format income statement for last month is given below: Sales (40,000 units ×...
A company’s contribution format income statement for last month is given below: Sales (40,000 units × $21 per unit) $ 840,000 Variable expenses 588,000 Contribution margin 252,000 Fixed expenses 201,600 Net operating income $ 50,400 The company considers renovating its operations by purchasing a new machine that would reduce variable expenses by $6.30 per unit. However, fixed expenses would increase to a total of $453,600 each month. Using the new machine would not cause a change in monthly sales quantity...
Spencer Company's most recent monthly contribution format income statement is given below:             Sales.................................. $60,000 Variable...
Spencer Company's most recent monthly contribution format income statement is given below:             Sales.................................. $60,000 Variable expenses............. 45,000 Contribution margin.......... 15,000 Fixed expenses.................. 18,000 Net operating loss.............. ($3,000)             The company sells its only product for $10 per unit. There were no beginning or ending inventories.                         Required:             What are total sales in dollars at the break-even point? What are total variable expenses at the break-even point? What is the company's contribution margin ratio? d.   If unit sales...
Westerville Company reported the following results from last year’s operations:   Sales $ 1,000,000   Variable expenses 300,000  ...
Westerville Company reported the following results from last year’s operations:   Sales $ 1,000,000   Variable expenses 300,000     Contribution margin 700,000     Fixed expenses 500,000     Net operating income $ 200,000     Average operating assets $ 625,000   This year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics:   Sales $ 200,000   Contribution margin ratio 60 % of sales   Fixed expenses $ 90,000 The company’s minimum required rate of return is 15%. 5. What is the turnover related to this year’s...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000 units) $ 272,000 $ 34.00 Variable expenses 152,000 19.00 Contribution margin 120,000 $ 15.00 Fixed expenses 54,800 Net operating income $ 65,200 Required: 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units?...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per...
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000 units) $ 272,000 $ 34.00 Variable expenses 152,000 19.00 Contribution margin 120,000 $ 15.00 Fixed expenses 54,000 Net operating income $ 66,000 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume...
4. ABC Company has the following contribution format income statement: Sales $364,500 Variable Expenses $112,000 Contribution...
4. ABC Company has the following contribution format income statement: Sales $364,500 Variable Expenses $112,000 Contribution Margin $252,500 Fixed Expenses $194,100 Net Operating Income $58,400 The degree of operating leverage is closest to: a. 6.24 b. 0.68 c. 0.17 d. 4.32
Contribution Income Statement Sales (12,000 units) ……………………….. 72,000 Variable expenses ……………………… 48,000 Contribution Margin ………………… 24,000...
Contribution Income Statement Sales (12,000 units) ……………………….. 72,000 Variable expenses ……………………… 48,000 Contribution Margin ………………… 24,000 Fixed expenses ………………………… 10,000 Net Operating Income ………………. 14,000 Jackpot company sells a single product, has provided its contribution format income statement for June. Required: Prepare Contribution Income Statement assuming that the business expects an increase in its total sales (total revenue) by $3,000 and decrease in variable cost per unit by 10%.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT