Provide correct answer Spartan Systems reported total sales of $390,000, at a price of$25, and per unit variable expenses of $16, for the sales oftheir single product.TotalPer UnitSales$390,000 $25Variable expenses249,600 16Contribution margin140,400 $9109,000Fixed expensesNet operating income $31,400What is the amount of contribution margin if sales volumeincreases by 40%?a. $40,600b. $196,560c. $17,400d. $138,000

Step 1: Define Contribution Margin AnalysisIn accounting, contribution margin analysis involves…

Answered: Spartan Systems reported total sales of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 17E

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Sales (18,00e units) Variable expenses Contribution margin Fixed expenses $ 368,008 144,e00 216,eee 188,eee $ 36,000 Operating incone Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even polnt in sales dollars.
For Sheridan Company, sales is $2000000, fixed expenses are $900000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $700000? A. $4444444 B. $5555556 C. $2500000 D. $1944444
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Wesley's income statement is as follows: Sales (10,000 units) Less variable costs Contribution margin Less fixed costs Net income $150,000 - 48,000 $102,000 - 24,000 $ 78,000 What is the unit contribution margin? A. $12.00 B. $ 7.20 C. $ 4.80 D. $10.20
Consider the following: Fixed expenses P78,000; Unit contribution margin 12;Target net profit 42,000. How many unit sales are required to earn the target net profit? A. 15,000 unitsB. 10,000 unitsC. 12,800 unitsD. 20,000 units
Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volume
Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 300,000 240,000 60,000 59,000 $ 1,000 If sales increase to 6,020 units, the increase in net operating income would be closest to: Multiple Choice ○ $1,000.00 ○ $200.00 ○ $800.00 ○ $3.33
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Assume the following (1) variable expenses = $294,000, (2) unit sales = 10,000, (3) the contribution margin rotio =25%, ond (4) net operoting income S10,000. Given these four assumptions, which of the following is true? Multiple Cholce The break-even polnt In sales dollars Is $352,000 The total contributlon margin = $220,500 The total sales 5367500 The total fixed expenses= $73,500
Skeeter Systems uses the following data in its Cost-Volume-Profit analyses: Sales Variable expenses Contribution margin Fixed expenses Net operating income O $80,000 What is total contribution margin if sales volume increases by 20%? O $158,400 O $200,000 Total $ 400,000 280,000 120,000 100,000 O $144,000 $ 20,000
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Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income If the selling price increases by $3 per unit and the sales volume decreases by 400 units, the net operating income would be closest to: Multiple Choice $13,800 $19,000 $17,733 $ 300,000 240,000 60,000 59,000 $ 1,000 $16,800

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