Question
In: Accounting
Managerial Accountin 1) Fauci Corporation has provided the following contribution format income statement. All questions concern...
Managerial Accountin
1) Fauci Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
|
Sales (3,000 units) |
$150,000 |
|
|
Variable expenses |
90,000 |
|
|
Contribution margin |
60,000 |
|
|
Fixed expenses |
48,000 |
|
|
Net operating income |
$12,000 |
Required:
a. What is the contribution margin per unit?
b. What is the contribution margin ratio?
c. What is the variable expense ratio?
d. If sales increase to 3,050 units, what would be the estimated increase in net operating income?
e. If sales decline to 2,900 units, what would be the estimated net operating income?
f. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the estimated net operating income?
g. If the variable cost per unit increases by $5, spending on advertising increases by $3,000, and unit sales increase by 450 units, what would be the estimated net operating income?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
1) Fauci Corporation has provided the following contribution format income statement. All questions concern situations that...
1) Fauci Corporation has provided the following contribution
format income statement. All questions concern situations that are
within the relevant range.
Sales (3,000 units)
$150,000
Variable expenses
90,000
Contribution margin
60,000
Fixed expenses
48,000
Net operating income
$12,000
Required:
a. What is the contribution margin per unit?
b. What is the contribution margin ratio?
c. What is the variable expense ratio?
d. If sales increase to 3,050 units, what would be the estimated
increase in net operating...
Homeboy Corporation has provided the following contribution format income statement. All questions concern situations that are...
Homeboy Corporation has provided the following contribution
format income statement. All questions concern situations that are
within the relevant range.
Sales (2,000 units)
$120,000
Variable expenses
72,000
Contribution margin
48,000
Fixed expenses
33,600
Net operating income
$14,400
Required:
If sales decline to 1,900 units, what would be the estimated net
operating income?
If the selling price increases by $4 per unit and the sales
volume decreases by 200 units, what would be the estimated net
operating income?
What is the...
ABC Corporation has provided the following contribution format income statement. All questions concern situations that are...
ABC Corporation has provided the following contribution format
income statement. All questions concern situations that are within
the relevant range. Show your calculations
Sales (6,000 units) $300,000
Variable expenses 240,000
Contribution margin 60,000
Fixed expenses 58,800
Net operating income $1,200
a. What is the contribution margin ratio? What does it mean?
b. If sales increase to 6,040 units, what would be the estimated
increase in net operating income?
c. If the selling price increases by $4 per unit and the...
Laraia Corporation has provided the following contribution format income statement. All questions concern situations that are...
Laraia Corporation has provided the following contribution
format income statement. All questions concern situations that are
within the relevant range.
Sales (3,000 units) $150,000
Variable expenses 90,000
Contribution margin 60,000
Fixed expenses 48,000
Net operating income $12,000
Required:
a. What is the contribution margin per unit?
b. What is the contribution margin ratio?
c. What is the variable expense ratio?
d. If sales increase to 3,050 units, what would be...
Laraia Corporation has provided the following contribution format income statement. All questions concern situations that are...
Laraia Corporation has provided the following contribution
format income statement. All questions concern situations that are
within the relevant range.
Sales (3,000 units) $150,000
Variable expenses 90,000
Contribution margin 60,000
Fixed expenses 48,000
Net operating income $12,000
g. If the variable cost per unit increases by $5, spending on
advertising increases by $3,000, and unit sales increase by 450
units, what would be the estimated net operating income?
h. What...
Mariah Corporation has provided the following contribution format income statement. Assume any solution is within the relevant range.
Mariah Corporation has provided the following contribution format income statement. Assume any solution is within the relevant range.
Sales (3,000 units)
$150,000
Variable expenses
90,000
Contribution margin
60,000
Fixed expenses
48,000
Net operating income
$12,000
Required:
How much is the contribution margin per unit? Estimate how many units must be sold to achieve a target profit of $54,000.
At the target profit of $54,000, what is the margin of safety in dollars?
If the tax...
Cost Terminology; Contribution Format Income Statement
Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costsRequired:1. What is the total manufacturing overhead cost?2. What is the total...
Goony Inc., which produces and sells a single product, has provided the following contribution format income...
Goony Inc., which produces and sells a single product, has
provided the following contribution format income statement for
December: Required: Redo the company's contribution format income
statement assuming that the company sells 3,400 units and answer
the questions below based upon the new sales level. New Company
contribution statement (use this table) category Total Per unit
ratio Sale (3400 units) $268,600 per unit $79 ratio 100.00% Less:
Variable expenses $125,800 per unit $37 ratio 46,84% Contribution
margin $142,800 per units...
Folsom Inc., which produces and sells a single product, has provided the following contribution format income...
Folsom Inc., which produces and sells a single product, has
provided the following contribution format income statement for
August: Sales (4,600 units) $ 105,800 Variable costs 41,400
Contribution margin 64,400 Fixed costs 46,000 Operating profit $
18,400 Required: Redo the company’s contribution format income
statement assuming that the company sells 4,500 units.
Please answrer the follwoing 3 questions at the bottom, thank you A contribution format income statement...
Please answrer the follwoing 3 questions at the bottom, thank
you
A contribution format income statement for the most recent year
for Big Bear Consumer Electronics Inc. is shown
below.
Total Department
AM/FM radios
HD radios
Sales
$320,000
100%
$270,000
100%
$50,000
100%
Less variable expenses
236,000
74%
216,000
80%
20,000
40%
Contribution Margin
84,000
26%
54,000
20%
30,000
60%
Less Traceable Fixed Expenses
15,000
5%
10,000
4%
5,000
10%
Segment Margin
69,000
22%
$44,000
16%
$25,000
50%
Less Common...
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