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Current operating income for Bay Area Cycles Company is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $110,000? Complete this question by entering your answers in the tabs below.

Current operating income for Bay Area Cycles Company is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $110,000? Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
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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Current operating income for Bay Area Cycles Company is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $110,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How many additional unit sales would be necessary to achieve operating income of $110,000? Additional unit sales units < Required 1 Required 2 >
Transcribed Image Text:Current operating income for Bay Area Cycles Company is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $110,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How many additional unit sales would be necessary to achieve operating income of $110,000? Additional unit sales units < Required 1 Required 2 >
Current operating income for Bay Area Cycles Company is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $110,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Ratio Revenue Variable expense Contribution margin Fixed expense Operating income Per Unit 100.00 $ Volume $ Required 1 Total (176,000) 44,000 100 % % 20 % Required 2 >
Transcribed Image Text:Current operating income for Bay Area Cycles Company is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $110,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Ratio Revenue Variable expense Contribution margin Fixed expense Operating income Per Unit 100.00 $ Volume $ Required 1 Total (176,000) 44,000 100 % % 20 % Required 2 >
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