Question
In: Accounting
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $176,000, total variable expenses...
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $176,000, total variable expenses were $128,480, and fixed expenses were $39,300.
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 600 units and total sales by $2,400? (Do not round intermediate calculations.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Last month when Holiday Creations, Inc., sold 43,000 units, total sales were $172,000, total variable expenses...
Last month when Holiday Creations, Inc., sold 43,000 units,
total sales were $172,000, total variable expenses were $130,720,
and fixed expenses were $37,200.
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, Inc., sold 50,000 units, total sales were $200,000, total variable expenses...
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. What is the estimated change in the company’s net operating
income if it can increase sales volume by 250 units and total sales
by $1,000?
Last month when Holiday Creations, Inc., sold 37,000 units, total sales were $301,000, total variable expenses...
Last month when Holiday Creations, Inc., sold 37,000 units,
total sales were $301,000, total variable expenses were $219,730,
and fixed expenses were $36,400.
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.)
Last month when Holiday Creations, Inc., sold 35,000 units, total sales were $291,000, total variable expenses...
Last month when Holiday Creations, Inc., sold 35,000 units,
total sales were $291,000, total variable expenses were $247,350,
and fixed expenses were $38,800.
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.)
Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $289,000, total variable expenses...
Last month when Holiday Creations, Inc., sold 36,000 units,
total sales were $289,000, total variable expenses were $239,870,
and fixed expenses were $36,500.
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 to increase its total sales by $1,700.
Morton Company’s contribution format income statement for last month is given below: Sales (44,000 units ×...
Morton Company’s contribution format income statement for last
month is given below:
Sales (44,000 units × $22 per unit)
$
968,000
Variable expenses
677,600
Contribution margin
290,400
Fixed expenses
232,320
Net operating income
$
58,080
The industry in which Morton Company operates is quite sensitive
to cyclical movements in the economy. Thus, profits vary
considerably from year to year according to general economic
conditions. The company has a large amount of unused capacity and
is studying ways of improving profits....
Morton Company’s contribution format income statement for last month is given below: Sales (44,000 units ×...
Morton Company’s contribution format income statement for last
month is given below:
Sales (44,000 units × $22 per
unit)
$
968,000
Variable expenses
677,600
Contribution margin
290,400
Fixed expenses
232,320
Net operating income
$
58,080
The industry in which Morton Company operates is quite sensitive
to cyclical movements in the economy. Thus, profits vary
considerably from year to year according to general economic
conditions. The company has a large amount of unused capacity and
is studying ways of improving profits....
1). Contribution Margin is: a). Sales - Total Variable expenses b). Sales - Total variable expenses...
1). Contribution Margin is:
a). Sales - Total Variable expenses b). Sales - Total variable
expenses - Total fixed expenses c). Sales revenue per unit x Sales
quantity d). Variable expense per unit x Sales quantity
2). When preparing segmented income statements fixed expense are
separated into the following categories:
a). Traceable and common b).Fixed and Variable c).Direct and
indirect d).Product and period
3).A Co. reported: Sales $125000; Contribution margin $62000;
Total fixed expenses $42000; Common fixed expenses $15000. How...
Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350.
__________________________________________________________________________
Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350.
What is Pearson's total contribution margin?
What is the breakeven in terms of units for Pearson?
What is Pearson's net income?
__________________________________________________________________________
Ava’s Creations sells two products. A and B. The weighted average per unit is $40 and Ava’s fixed costs are $24,800. The sales mix is 30% for A and 70% for B.
How many units of...
The current sales of a company are 5000 units at $65 per unit. Total variable expenses...
The current sales of a company are 5000 units at $65 per unit.
Total variable expenses and fixed expenses are $200,000 and
$104,800 respectively. If sales unit increase by 4% and fixed
expenses remain unchanged, estimate the percentage change in net
operating income.
a. 80.16%
b. 24.75%
c. 25%
d. 4%
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