Last month, ABC Service, Inc. earned $50,000 of revenue by providing services for 1,000 customers. The firm incurred $12,000 of selling costs and $18,000 of administrative costs during the month. Q1: What is the firm's operating income for the month? Q2: What is the firm's cost per unit of service for the month?
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- 1. Analysis and Critical Thinking For the month of January, Organic Food had a revenue of P500,000, variable expenses of P400,000, and fixed expenses of P85,000. In order for the company to earn P100,000 of profit for February, how much should the revenue be?Great Inc.'s contribution margin ratio is 48% and its fixed monthly expenses are $36,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $140,000? A. $13,440 B. $23,740 C. $67,000 D. $31,200d) Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. e) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months?
- 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 toYour Company consists of two stores, A and B. Store A had sales of $80,000 during March, a contribution margin ratio of 30%, and a segment margin of $11,000. The company as a whole had sales of $200,000, a contribution margin ratio of 36%, and segment margins for the two stores totaling $31,000. If net operating income for the company was $15,000 for the month, what were the traceable fixed expenses in Store B?During a recent month, Cleveland Company planned to provide cleaning services to 30 customers for $25 per hour. Each job was expected to take 3 hours. The company actually served 10 more customers than expected, but the average time spent on each job was only 2.5 hours each. Cleveland’s revenues for the month were a. $250 more than expected. b. $250 less than expected. c. $750 more than expected. d. Cannot be determined from data given
- A company's contribution margin ratio is 18% and its fixed monthly expenses are $49,000. If the company's sales for a month are $309,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. Multiple Choice $204,380 $6,620 $260,000 $55,620 s ProuThe following data are available for the Firempong Corporation for a recent month: Product 1 Product 2 Product 3 Total Sales... $150,000 $130,000 $90,000 $370,000 Variable expenses... 91,000 104,000 27,000 222,000 Contribution margin... $ 59,000 $ 26,000 $63,000 148,000 Fixed expenses... 55,000 Net operating income... $ 93,000 The break-even sales for the month for the company are closest to: O A. $91,667 O B. $203,000 O C. $137,500 O D. $148,000Creswell Corporation's fixed monthly expenses are $29,000 and its contribution margin ratio is 56%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $95,000? a. $12,800 b. $24,200 c. $53,200 d. $66,000
- During a recent month, Cantho Company planned to provide cleaning services to 30 customers for $26 per hour. Each job was expected to take 6.0 hours. The company actually served 10 more customers than expected, but the average time spent on each job was only 5.5 hours each. Cantho's revenues for the month were OA $1,040 less than expected OB. $1.560 more than expected OC. $1.040 more than expected OD. Cannot be determined from data givenCompany XYZ made total sales of $250,000 during the month of December. The company also incurred total expenses of $50,000. Of that amount 60% was fixed expenses. Company XYZ expects sales to increase by 16% next month. What is the expected operating profit, in (S) value, next month? Select orie: O a None of the given answers O b. 200,000 O c 230,000 O d. 232,000 O e. 236,800Data for Hermann Corporation are shown below: Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200 and monthly sales increase by $15,300 ? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200 and monthly sales increase by $15,300 ? (Round any unit calculations up to the nearest whole unit.)