Cassius Corporation has provided the following contribution format income statement. Assume that the following information iswithin the relevant range.Sales (7,000 units)Variable expensesContribution margin$ 210,000136,50073,50067,200Fixed expensesNet operating income$ 6,300The number of units that must be sold to achieve a target profit of $31,500 is closest to:

Contribution Margin: Contribution margin is the excess of selling price over the variable costs of a…

Answered: Cassius Corporation has provided the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kelchner Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) Variable expenses $ 180,000 108.000 72,000 62,400 9,600 Contribution margin Fixed expenses Net operating income 15. What is the contribution margin ratio for Kelchner Corporation? %24
Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 300,000 240,000 60,000 59,000 $ 1,000 If sales increase to 6,020 units, the increase in net operating income would be closest to: Multiple Choice ○ $1,000.00 ○ $200.00 ○ $800.00 ○ $3.33
Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (7,000 units) Variable expenses Contribution margin Fixed expenses Net operating income The number of units that must be sold to achieve a target profit of $31,500 is closest to: 35,000 units 42,000 units 9,400 units $ 210,000 136,500 73,500 67,200 6,300 48,000 units
Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) Variable expenses Contribution margin Fixed expenses $ 120,000 90,000 30,000 21,000 $ 9,000 Net operating income If sales volumes decline to 2,900 units, the net operating income would be closest to:
Stonebraker Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (9,000 units) $270,000 Variable expenses 189,000 Contribution margin 81,000 Fixed expenses 77,400 Net operating income $3,600 Required: A. What is the breakeven quantity? B. What is the breakeven sales dollar? C. What is the margin of safety in dollars? D. What is the degree of operating leverage? E. If sales increase to 9,400 units, what would be the estimated increase in net operating income? F. If the variable cost per unit increases by $6, spending on advertising increases by $3,000, and unit sales increase by 19,200 units, what would be the estimated net operating income? G. Estimate how many units must be sold to achieve a target profit of $26,100.
Stonebraker Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (9,000 units) $270,000 Variable expenses 189,000 Contribution margin 81,000 Fixed expenses 77,400 Net operating income $3,600 Required: A. What is the breakeven quantity? B. What is the breakeven sales dollar? C. What is the margin of safety in dollars? D. What is the degree of operating leverage? E. If sales increase to 9,400 units, what would be the estimated increase in net operating income? F. If the variable cost per unit increases by $6, spending on advertising increases by $3,000, and unit sales increase by 19,200 units, what would be the estimated net operating income? G. Estimate how many units must be sold to achieve a target profit of $26,100. Please help me to solve remaining sub parts.
Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income If the selling price increases by $3 per unit and the sales volume decreases by 400 units, the net operating income would be closest to: Multiple Choice $13,800 $19,000 $17,733 $ 300,000 240,000 60,000 59,000 $ 1,000 $16,800
Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income tax
A company has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $320,000 192,000 128,000 110,400 $ 17,600 The margin of safety in dollars is closest to:
Stonebraker Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (9,300 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 306,900 204,600 102,300 77,500 $ 24,800 Required: a. If sales increase to 9,370 units, what would be the estimated increase in net operating income? b. If the variable cost per unit increases by $7, spending on advertising increases by $3,500, and unit sales increase by 20,500 units, what would be the estimated net operating income? c. Estimate how many units must be sold to achieve a target profit of $36,460.
Zachia Ltd provides the following data regarding its four product lines: Product Sales mix Weighted average contribution margin per unit (WACMU) Fixed costs Desired profit after tax w Y 60 20 15 $13.7 $71,000 $33,950 The corporate tax rate is 30% Required Calculate the number of units of Product X that must be sold in order to achieve the desired after-tax profit?
Pepper Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income If the variable cost per unit increases by $1, spending on advertising increases by $2,000, and unit sales increase by 50 units, the net operating income would be closest to: O $450 O $1,000 O $2,150 $ 40,000 30,000 10,000 7,000 $ 3,000 O $9,450

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