The following is Specter Corporation's contribution format income statement for last month: Sales $1,200,000 Less variable expenses 800,000 Contribution margin 400,000 Less fixed expenses 300,000 Net income $100,000 The company has no beginning or ending inventories and produced and sold 20,000 units during the month. Required: a. What is the company's contribution margin ratio? b. What is the company's break-even in units? c. If sales increase by 100 units, by how much should net income increase?
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Sales $1,200,000
Less variable expenses 800,000
Contribution margin 400,000
Less fixed expenses 300,000
Net income $100,000
The company has no beginning or ending inventories and produced and sold 20,000 units during
the month.
Required:
a. What is the company's contribution margin ratio?
b. What is the company's break-even in units?
c. If sales increase by 100 units, by how much should net income increase?
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- 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 toWhirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 35.00 19.00 $16.00 Sales (8,700 units) Variable expenses Contribution margin Fixed expenses Net operating income. Required: (Consider each case independently): Total $ 304,500 165,300 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 139, 200 54,300 $ 84,900 1. What would be the revised net operating income per month if the sales volume increases by 60 units? 2. What would be the revised net operating income per month if the sales volume decreases by 60 units? 3. What would be the revised net operating income per month if the sales volume is 7,700 units?Cardiff Electronics Company had the following statement of comprehensive income for the most recent year. Sales (17,000 units). Less: Variable expenses. Contribution. Less: Fixed expenses. Profit. Given this data, the contribution per unit was: Select one: O A. £2 O B. £15 O C. £6 O D. £4 £357,000 225,000 102,000 68,000 £ 34,000
- Whirly Corporation's contribution format income statement for the most recent month is shown be Total $ 254, 200 147,600 Per Unit Sales (8,200 units) Variable expenses $ 31.00 18.00 Contribution margin 106,600 $ 13.00 Fixed expenses 54,200 Net operating income $ 52,400 Required: (Consider each case independently): 1. What would be the revised 2. What would be the revised net operating income per month if the sales volume decreases by 60 units? 3. What would be the revised net operating income per month if the sales volume is 7,200 units? operating income per month if the sales volume increases by 60 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income Pr [O ere to searchSmithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Sinks Mirrors Vanities Total Units 1,000 500 500 2,000 Percentage of total sales Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses Operating income Break-even point in unit sales: Percentage sex 25% 25% 100% Break-even point in sales dollars: Total Fixed expenses. Weighted-average CM per unit Sinks 48% Product Mirrors 20% $264,000 100.00% $110,000 100.00% $176,000 100.00% $550,000 100.00% 80,000 30.30% 72,000 65.45% 82,000 46.59% 219,300 39.87% 53.41% 60.13% $184,000 $ 94,000 330,700 69.70% 38,000 34.55% S 76.00 $ 184.00 $ 188.00 Fixed expenses Overall CM ratio $293,300 $158.00 Vanities 32% $293,300 0.60 1,856.33 units Total 100% 293,300 $ 37,400 = $487,798.61 *($184.00 0.50) + ($76.00 x…Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 19.00 $ 12.00 Sales (8,900 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 275,900 169,100 106,800 54,200 $ 52,600 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 7,900 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
- Last period Hartig Corporation sold 40,000 units, total sales were $303,000, total variabie expenses were $227,250, and fixed expenses were S35,000. Required: 1. What is the company's contribution margin (CM) ratio?Subject - Acounting Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $137,760, and fixed expenses were $37,400. Required: 1. What is the company’s contribution margin (CM) ratio? 2. What is the estimated change in the company’s net operating income if it can increase sales volume by 450 units and total sales by $1,800? (Do not round intermediate calculations.)Last month when Holiday Creations, Incorporated, sold 42,000 units, its sales, variable expenses, and fixed expenses were $168,000, $122,640, and $35,200, respectively. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the company's variable expense ratio? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Variable expense ratio % %
- Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $289,000, total variable expenses were $236,980, and fixed expenses were $35,400. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase total sales by $1,700? (Do not round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating incomeWhirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 236,800 140,600 96,200 54,300 $ 41,900 Per Unit $32.00 19.00 $13.00 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 6,400 units?Miller Company's contribution format income statement for the most recent month is shown below: Sales (38,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 190,000 76,000 114,000 46,000 $ 68,000 Required: (Consider each case independently): 1. Net operating income 2. Net operating income 3. Net operating income 4. Net operating income Per Unit $ 5.00 2.00 $ 3.00 1. What is the revised net operating income if unit sales increase by 14%? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 21%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 2%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 10 cents per unit, and the number of units sold decreases by 14%?