None Exercise 2-4 (Algo) Computing and Using the CM Ratio [LO2-3]Last month when Holiday Creations, Inc., sold 40,000 units, total sales were $283,000, total variable expenses were $206,590, andfixed expenses were $38,600.Required:1. What is the company's contribution margin (CM) ratio?2. What is the estimated change in the company's net operating income if it can increase total sales by $1,900? (Do not roundintermediate calculations.).1. Contribution margin ratioEstimated change in net operating2.income

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Answered: Exercise 2-4 (Algo) Computing and Using…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...

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Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below Per Unit $ 140 Percent of Sales 100% Selling price Variable expenses 91 65 Contribution margin $ 49 35% Fixed expenses are $88,000 per month and the company is selling 3,000 units per month.
EXERCISE: Computing and Using the CM Ratio,Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000.Required:1. What is the company’s contribution margin (CM) ratio?2. Estimate the change in the company’s net operating income if it were to
Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Per Unit Sales $ 110 Selling price Variable expenses 100% 77 70 Contribution margin $ 33 30% Fixed expenses are $82,000 per month and the company is selling 3,500 units per month. 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $5 per unit and increase unit sales by 20%. 2-b. Should the higher-quality components be used?
Exercise 2-4 (Algo) Computing and Using the CM Ratio [LO2-3] Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $297,000, total variable expenses were $240,570, and fixed expenses were $39,500. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $2,100? (Do not round intermediate calculations.) 1. Contribution margin ratio Estimated change in net operating 2. income %
Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margini 30,000 Less fixed expenses -22,500 Net income 7,500 Required: Calculate with workings: a. The contribution margin ratio in percentage. b. Three breakeven point in total sales ringgits.
Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume [LO6-4] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below Per Unit $ 140 Percent of Sales 100% Selling price Variable expenses 91 65 Contribution margin $ 49 35% Fixed expenses are $88,000 per month and the company is selling 3,000 units per month.
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Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margin 30,000 Less fixed expenses -22,500 Net income 7,500 Required: Calculate with workings: The contribution margin ratio in percentage. Three breakeven point in total sales ringgits. The sales in RM if the company wants to achieve RM40,000 in net income.
Subject - Acounting Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $137,760, and fixed expenses were $37,400. Required: 1. What is the company’s contribution margin (CM) ratio? 2. What is the estimated change in the company’s net operating income if it can increase sales volume by 450 units and total sales by $1,800? (Do not round intermediate calculations.)
Question 3 Study the information given below and answer: 3.3 Calculate the new total Marginal Income and Net Profit/Loss if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1200 R288 R192 R96 R216 960 R144 000 5%
Computing and Using the CM Ratio Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. Required: 1. What is the company’s contribution margin (CM) ratio? 2. What is the estimated change in the company’s net operating income if it can increase total sales by $1,000?
Question No.2 Menlo Company manufactures and sells a single product. The company’s sales and expenses for last quarter are as follows: Unit Cost $30 $12 $18 Total Cost $450,000 $180,000 $270,000 $216,000 $054,000 Sales. Less variable expenses.. Contribution margin. Less fixed expenses. Net operating income. Required: What is the B.E.P in units sold and in sales dollars? What is the total contribution at B.E.P? How many units must sold each quarter to earn a target profit of $90,000? Use the contribution margin method. Verify your answer by preparing a contribution format income statement at the target sales level. Refer to original data, compute the margin of safety in both dollars and %age terms. What is the company CM ratio? If sales increase by $50,000 per quarter by how much would you expect quarterly net operating income to increase?

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