a.
To calculate: The operating income of International Data System at 105,000 units.
Introduction:
Operating Income:
It is an accounting figure that measures the extent of profitability derived from a commercial entity's operations, after excluding operating expenditures, such as wages & salaries,
b.
To calculate: The operating income for International Data System at 205,000 units.
Introduction:
Operating Income:
It is an accounting figure that measures the extent of profitability derived from a commercial entity's operations, after excluding operating expenditures, such as wages & salaries, depreciation, and cost of commodities or services sold.Â
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- Spice Inc.'s unit selling price is $49, unit variable costs are $39, fixed costs are $120,000, and current sales are 9,100 units. How much will income from operations change if sales increase by 5,400 units? DO NOT GIVE SOLUTION IN IMAGE FORMATarrow_forwardRequired information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 70 49 $ 21 Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Req 2A 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Req 2B Percent of Sales Complete this question by entering your answers in the tabs below. 100% 70 30% by Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. Net operating incomearrow_forward1. Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The company’s monthly fixed expenses are $180,000. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the company’s break-even point in units? Use commas as needed (i.e. 1,234). What is the company’s break-even point in dollars? Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of October when they will sell 10,000 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Cadre, Inc. Contribution Margin Income Statement For the Month of October How many units will Cadre need to sell in order to…arrow_forward
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