Question

In: Accounting

Marano Corporation produces and sells a single product. In October, the company sold 2,000 units. Its...

Marano Corporation produces and sells a single product. In October, the company sold 2,000 units. Its total sales were $148,000, its total variable expenses were $78,900, and its total fixed expenses were $55,800.

Required:
a.

Construct the company's contribution format income statement for October. (Do not round intermediate calculations.)

Net Operating Income:
b.

Redo the company's contribution format income statement assuming that the company sells 1,900 units.(Do not round intermediate calculations.)

Net Operating Income:

Solutions

Expert Solution

a. Contribution fromat Income Statement
Per Unit Total
Sales $             74.00 $       1,48,000
Variable cost $             39.45 $           78,900
Contribution Margin $             34.55 $           69,100
Fixed Cost $           55,800
Net Operating Income $           13,300
b. Contribution fromat Income Statement
Per Unit Total
Sales $             74.00 $       1,40,600
Variable cost $             39.45 $           74,955
Contribution Margin $             34.55 $           65,645
Fixed Cost $           55,800
Net Operating Income $             9,845
Working:
a. Selling Price per unit = Total sales revenue/total units sold
= $       1,48,000 / 2000
= $             74.00
b. Variable cost per unit = Total Variable cost /Total units sold
= $     78,900.00 / 2000
= $             39.45

Related Solutions

Marano Corporation produces and sells a single product. In October, the company sold 1,000 units. Its...
Marano Corporation produces and sells a single product. In October, the company sold 1,000 units. Its total sales were $156,000, its total variable expenses were $79,000, and its total fixed expenses were $55,900. a. Construct the company's contribution format income statement for October. (Do not round intermediate calculations.) b. Redo the company's contribution format income statement assuming that the company sells 900 units. (Do not round intermediate calculations.)
6. Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution...
6. Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.   Sales (7,700 units) $400,400   Variable expenses 246,400   Contribution margin 154,000   Fixed expenses 103,500   Net operating income $50,500 If the company sells 7,600 units, its net operating income should be closest to: $46,000 $48,500 $50,500 $49,979 8. Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)   Selling price per unit $ 180.00   Variable expense per...
Harris Corporation produces a single product. Last year, Harris manufactured 30,420 units and sold 24,900 units....
Harris Corporation produces a single product. Last year, Harris manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows: Fixed manufacturing overhead $395,460 Variable manufacturing overhead $258,570 Direct labor $142,974 Direct materials $234,234 Sales were $1,207,650, for the year, variable selling and administrative expenses were $136,950, and fixed selling and administrative expenses were $185,562. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income...
Krepps Corporation produces a single product. Last year, Krepps manufactured 27,120 units and sold 21,800 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 27,120 units and sold 21,800 units. Production costs for the year were as follows: Direct materials $ 222,384 Direct labor $ 124,752 Variable manufacturing overhead $ 208,824 Fixed manufacturing overhead $ 461,040 Sales totaled $915,600 for the year, variable selling and administrative expenses totaled $128,620, and fixed selling and administrative expenses totaled $197,976. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the...
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,650 units and sold 24,600 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,650 units and sold 24,600 units. Production costs for the year were as follows: Direct materials $222,375 Direct labor $145,285 Variable manufacturing overhead $243,130 Fixed manufacturing overhead $563,350 Sales totaled $1,070,100 for the year, variable selling and administrative expenses totaled $140,220, and fixed selling and administrative expenses totaled $210,515. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the...
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,650 units and sold 24,600 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,650 units and sold 24,600 units. Production costs for the year were as follows: Direct materials $222,375 Direct labor $145,285 Variable manufacturing overhead $243,130 Fixed manufacturing overhead $563,350 Sales totaled $1,070,100 for the year, variable selling and administrative expenses totaled $140,220, and fixed selling and administrative expenses totaled $210,515. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income...
Krepps Corporation produces a single product. Last year, Krepps manufactured 32,210 units and sold 26,700 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 32,210 units and sold 26,700 units. Production costs for the year were as follows: Direct materials $ 241,575 Direct labor $ 157,829 Variable manufacturing overhead $ 251,238 Fixed manufacturing overhead $ 418,730 Sales totaled $1,241,550 for the year, variable selling and administrative expenses totaled $138,840, and fixed selling and administrative expenses totaled $199,702. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,910 units and sold 28,100 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,910 units and sold 28,100 units. Production costs for the year were as follows: Direct materials $ 247,543 Direct labor $ 176,332 Variable manufacturing overhead $ 284,844 Fixed manufacturing overhead $ 474,740 Sales totaled $1,405,000 for the year, variable selling and administrative expenses totaled $148,930, and fixed selling and administrative expenses totaled $247,543. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the...
Harris Corporation produces a single product. Last year, Harris manufactured 34,060 units and sold 28,600 units....
Harris Corporation produces a single product. Last year, Harris manufactured 34,060 units and sold 28,600 units. Production costs for the year were as follows:   Fixed manufacturing overhead $510,900   Variable manufacturing overhead $269,074   Direct labor $173,706   Direct materials $255,450 Sales were $1,172,600, for the year, variable selling and administrative expenses were $148,720, and fixed selling and administrative expenses were $214,578. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit would be: (Do...
Krepps Corporation produces a single product. Last year, Krepps manufactured 27,540 units and sold 22,200 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 27,540 units and sold 22,200 units. Production costs for the year were as follows: Direct materials $ 214,812 Direct labor $ 121,176 Variable manufacturing overhead $ 239,598 Fixed manufacturing overhead $ 302,940 Sales totaled $1,098,900 for the year, variable selling and administrative expenses totaled $115,440, and fixed selling and administrative expenses totaled $176,256. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT