FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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ch7-47
Klamath Company produces a single product. The
Sales (67,100 units @ $32.00) | $2,147,200 |
Total variable cost | 579,744 |
Contribution margin | $ 1,567,456 |
Total fixed cost | 1,693,600 |
Operating income | $ (126,144) |
Required:
1. Compute the unit contribution margin and the units that must be sold to break even.
Unit contribution margin | $ |
Break-even units | units |
2. Suppose 10,000 units are sold above breakeven. What is the operating income?
$
3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue.
Contribution margin ratio | % |
Break-even sales revenue | $ |
Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be?
$
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VIEW 1. unit contribution Margin and units that must be sold to break even
VIEW 2. suppose 10000 units are sold above breakeven. what is operating income
VIEW 3. contribution Ratio and using contribution ratio to calculate the break even point in sales
VIEW suppose that revenues are $200,000 more than expected for the coming year. total operating income?
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