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?

Jilk Incorporated's contribution margin ratio is 61% and its fixed monthly expenses are $48,500. 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 $139,000?   $84,790   $5,710   $36,290   $90,500

Solve the incorrect

CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units)       $10000Variable expenses.       4000Contributions margin.    6000Fixed expenses.               1000Net operating income.     5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…

Gayne Corporation's contribution margin ratio is 19% and its fixed monthly expenses are $50,500. If the company's sales for a month are $312,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. Multiple Choice $202,220 $8,780 $261,500 $59,280

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Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 32.00 19.00 $13.00 Sales (8,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,600 157,700 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 8 $ 107,900 55,200 $ 52,700 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 7,300 units?