Creswell Corporation's fixed monthly expenses are $26,000 and Its contribution margin ratio is 60%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating Income in a monthwhen sales are $84,000?Multiple ChoiceO$7,600$50,400$24.400$58.000

The objective of the question is to calculate the net operating income of Creswell Corporation in a…

Answered: Creswell Corporation's fixed monthly…

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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Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $20,000. Assuming total fixed expenses of $1,000 and variable expenses per unit of $0.75, how much was the selling price per unit? O a. 3 O b. 8 O c. O d. 4 O e. 6 S PAGE NEXT PAGE 14:10 to search A O 40) ENG 15-04-2021 hp art sc delete home end 144 %23 24 & num + backspace 6. 8 lock 7 V 8 A U home 1 48 5 0 enter D G K pause ↑ shift 11 C M end alt ctrl
Company XYZ made total sales of $250,000 during the month of December. The company also incurred total expenses of $210,000. Of that amount 60% was fixed expenses. Company XYZ expects sales to increase by 13% next month. What is the expected operating profit, in ($) value, next month?Select one:a. 45,200b. 61,580c. None of the given answersd. 166,000e. 40,000
4 Atlas Company has a monthly target operating income of $20,000. Variable expenses are 60% of sales and monthly fixed expenses are $11,400. What is ?John's operating leverage factor at the targetlevel of operating income 1.75 ) 1.57 () 1.43 ) 2.00 () 1.35 ()
Shalom Company's sales are P563,000, its fixed expenses are P150,000, and its variable expenses are 60% of sales. What is Shalom Company's margin of safety? Amounts must be in whole numbers. Example: 88,000 or (88,000)
James Company has a margin of safety percentage of 20%. The break-even point is £200,000 and the variable expenses are 45% of sales. Given this information, the operating profit is: Select one: O A. £27,500 O B. £18,000 O C. £22,500 O D. £22,000
ces Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Percent Per Unit of Sales $60 100% 39 65 $21 35% Required (see below for a hint if you get stuck): 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600 and the monthly sales volume increases by 100 units? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000? (Do not round intermediate calculations.) Net operating income by
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Miller Company's most recent income statement follows: Sales (18,9e0 units) Less: Variable expenses Total $504, 000 126, 000 Per Unit $ 28 Contribution margin 378,000 $ 21 Less: Fixed expenses 53,00 $325, 000 Net income Consider each of the following cases independently. Required: 1. Prepare a new income statement if the sales volume increases by 30%, and the selling price decreases by $4.00. (Do not round Intermedlate calculations. Round "Per Unlt" answers to 2 decimel places.) Total Per Unit Sales
Sales $48,000 Variable Expenses $32,000 Contribution Margin $16,000 Fixed Expenses $13,000 Net Operating Income $3,000 8.1 What is the contribution margin per unit? 8.2 What is the contribution margin ratio? 8.3 If sales increased to 1,010, what would be the increase in net operating income? 8.4 If sales decreased to 950, what would be the net operating income? 8.5 What is the breakeven point in units? Round up to nearest unit 8.6 How many units must be sold to achieve a target profit of $7,000? 8.7 What is the margin of safety in dollars and in percentage? 8.8 What is the degree of operating leverage? Consider the following for Sports Stuff Corporation. The following contribution format income statement is based on a sales volume of 1,000 units. The relevant range is 700 to 1,400 units. 8.9 If the selling price increased by $4 but the sales volume decreased by 10%, what would be the net operating income? 8.10 If the company…
XY Company provided you the following data: Average operating assets 120,000 Margin on sales 15% Minimum required rate of return 20% Return on investment 25% Sales 300,000 Turnover 2.50 What is the residual income? (Correct ans: 21,000) need solution
Ignore first question and answer only 2
How many units would have to be sold each month to attain a profit of 51600? sales 608,000. Per unit 40 variable expenses 425600 per unit 28 contribition margin 182400 per unit 12 fixed expense 156,000 net operating income 26400

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