Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin: Fixed expenses Net operating incone $ 80,000 52,000 28,000 21,848 $ 6,160
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution Margin :— It is the difference between sales and variable cost. Contribution margin…
Q: Hudson Company reports the following contribution margin income statement. HUDSON COMPANY…
A: To calculate sales revenue required to earn target income, we need to calculate target contribution…
Q: Required: (Consider each case independently): 1. What is the revised net operating income if unit…
A: Since we answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Variable cost Depends upon the production of goods or services that is increment of sales increases…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The margin of safety represents the difference between actual or expected sales and the break-even…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit. Current selling…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Marginal Costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to…
Q: income statement based on a sales volume of 1,000 units (the relevant range of production is 500…
A: The operating leverage is calculated as contribution margin divided by EBIT.
Q: Required nforma [The following information applies to the questions displayed below.] Oslo Company…
A: Degree of operating leverage = Contribution / Operating income
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Under contribution margin income statement, the expenses are bifurcated into fixed and variable…
Q: Required information A company sold a total of 1,000 units for total sales revenue of $70,000. The…
A: Contribution margin per unit = Total Contribution margin / No. of units = $31500 / 1000 units =…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The income statement is prepared to estimate the profitability of the business for the current…
Q: Cabrera Enterprises, a company that produces and sells a single product has provided its…
A: Solution: Contribution margin per unit = Contribution margin / Nos of units = $813,750 / 52500 =…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The change in operating income owing to a change in sales is measured by the degree of operating…
Q: Smith Company produces and sells a single product and prepared the following contribution format…
A: Variable Expenses Per unit = $ 12100 / 1000 units = $ 12.1 Sales Per unit = $ 20300 / 1000 unit = $…
Q: [The following information applies to the questions displayed below.] Hudson Company reports the…
A: The break-even sales are the sales where business earns no profit or loss during the period. The…
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A: The question is related to accepting an special offer or not. The factor that affects this decision…
Q: Break-even point units
A: Break-even point: Is the point where the contribution margin matches the fixed cost. This results in…
Q: prepare a contribution income statement with the following: Selling Price Per Unit $45 Variable…
A: A contribution margin income statement refers to an income statement wherein all factor costs are…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Degree of operating leverage=Sales-Variable expenseSales-Variable expense-Fixed expense
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A: The income statement shows the financial position of the company whether the business is making a…
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A: Contribution margin is an important technique used in the cost volume profit analysis. It is the…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Break even point refers to the point at which the aggregate cost as well as the aggregate revenue…
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A: Marginal Costing - Marginal Costing is the method of computing operating profit by bifurcating…
Q: Last year’s contribution format income statement for Huerra Company is given below: Total Unit…
A: An investor can use the mathematical formula known as return on investment, or ROI, to assess their…
Q: Sales (1,000 units) Variable expenses Contribution margin Fixed expenses $ 50,000 32,500 17,500…
A: Break even point is based on the fixed costs and Contribution margin per unit. Contribution margin…
Q: 5. what is the break even point in dollar sales? 6. what is the break even point in unit sales? 7.…
A: Variable Costs: Variable costs is the cost which tends to increase or decrease depending on the…
Q: Required Information [The following information applies to the questions displayed below.] Oslo…
A: Variable costs are those nature of costs which changes with change in activity level of costs.…
Q: Farrow Company reports the following annual results. Contribution Margin Income Statement Sales…
A: Decision making is the analysis by which the entity can estimate the costs for a project and check…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution Margin Ratio: When a company's revenues exceed its variable expenses, the difference is…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of Operating Leverage - It measures the how much operating income of a company will change…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Fixed cost is the cost that does not change with a change in goods or services production. It is not…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The objective of the question is to calculate the estimated percent increase in net operating income…
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A: Contribution margin income statement in the business shows fixed costs and variable costs in the…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: Increase in sales volume will not impact total fixed cost. Since total fixed cost will remain…
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- The contribution format income statement for Huerra Company for last year is given below. Total $1,006,000 603,600 Unit $ 50.30 30.18 402,400 20.12 322,400 16.12 Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income 80,000 32,000 $ 48,000 4.00 1.60 $2.40 The company had average operating assets of $502,000 during the year. Required: 1. Compute the company's margin, turnover, and return on investment (ROI) for the period. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $93,000. 3. The company achieves a cost savings of $7,000 per year by using less costly materials. 4. The company…Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,600 units at $225 each) Variable costs (11,600 units at $180 each) Contribution margin Fixed costs Income $ 2,610,000 2,088,000 522,000 315,000 $ 207,000 1. Assume Hudson has a target income of $150,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)Last year’s contribution format income statement for Huerra Company is given below: Total Unit Sales $ 1,002,000 $ 50.10 Variable expenses 601,200 30.06 Contribution margin 400,800 20.04 Fixed expenses 316,800 15.84 Net operating income 84,000 4.20 Income taxes @ 40% 33,600 1.68 Net income $ 50,400 $ 2.52 The company had average operating assets of $491,000 during the year. Required: Compute last year’s margin, turnover, and return on investment (ROI). For each of the following questions, indicate whether last year’s margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI. Consider each question separately. Using Lean Production, the company is able to reduce the average level of inventory by $100,000. The company achieves a cost savings of $10,000 per year by using less costly materials. The company purchases machinery and equipment that increase average operating assets by $125,000.…
- Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 85,000 Variable expenses 59,500 Contribution margin 25,500 Fixed expenses 20,400 Net operating income $ 5,100 14. Assume that the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $20,400 and the total fixed expenses are $59,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)ValaRequired information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 60,000 39,000 Net operating income 21,000 14,700 $ 6,300 Required: 5. If sales decline to 900 units, what would be the net operating income? Note: Round "Per Unit" calculations to 2 decimal places.
- Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 15,000 Variable expenses 9,000 Contribution margin 6,000 Fixed expenses 3,120 Net operating income $ 2,880 14. Assume that the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $3,120 and the total fixed expenses are $9,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)4 Womack Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses Net operating income The margin of safety percentage is closest to: O 75% 1% O 6% O 24% $ 270,000 202,500 67,500 63,750 $3,750Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 12,000 8,000 6,000 $ 2,000 Foundational 6-14 (Static) 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $6,000 and the total fixed expenses are $12,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? Degree of operating leverage
- Rovinsky Corp, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (5,700 units) $319,200 Variable Expenses 188,100 Contribution Margin 131,100 Fixed Expenses 106,500 Net Operating Income 24,600 Calculate the breakeven point in: a. sales units (round to the nearest whole unit) b. and sales dollarsA manufacturer's contribution margin income statement for the year follows. Prepare a contribution margin income statement if the number of units sold (a) increases by 300 units and (b) decreases by 300 units. Sales ($12 per unit x 10,300 units) $123,600 Variable costs 72,100 Contribution margin 51,500 Fixed costs Income 41,000 $ 10,500 Sales Variable costs Contribution Margin Income Statement For Year Ended December 31 Contribution margin Fixed costs Income 10,600 units sold 10,000 units sold $ 127,200 $ 120,000 $ 41,000 41,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 50,000 Variable expenses 27,500 Contribution margin 22,500 Fixed expenses 14,850 Net operating income $ 7,650 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)