- Blue Company Has Prepared The Following Contribution Format Income Statement Basedon A Sales Volume Of 1 000 Units The 1 (31.26 KiB) Viewed 29 times
- Blue Company Has Prepared The Following Contribution Format Income Statement Basedon A Sales Volume Of 1 000 Units The 2 (34.88 KiB) Viewed 29 times
- Blue Company Has Prepared The Following Contribution Format Income Statement Basedon A Sales Volume Of 1 000 Units The 3 (26.2 KiB) Viewed 29 times
- Blue Company Has Prepared The Following Contribution Format Income Statement Basedon A Sales Volume Of 1 000 Units The 4 (29.51 KiB) Viewed 29 times
Blue company has prepared the following contribution format income statement basedon a sales volume of 1,000 units (the relevant range of production is 500 to 1,500 units) 5 6 7 Sales $ 20,000 8 Variable expenses 12,000 9 Contribution margin 8,000 10 Fixed expenses 6,000 11 Net operating income S 2,000 12 13 Questions: 14 15 1. What is the contribution margin per unit? 16 2. What is the contribution margin ratio? 17 3. What is the variable expense ratio? 18 4. If sales increase to 1,001 units, what would be the increase in net operating income? 19 5. If sales decline to 900 units, what would be the net operating income? 20 6. If the selling price increases by $2 per unit and thes ales volume decreases by 100 units, what would be the net operating income? 21 7. If the variable cost per unit increases by $1, spending on advertising incrases by $1,500, and unit sales incrase by 250 units, what would be the net operatin Directions & Data Calculations
28 10. Cell Styles Undo Clipboard Part Magnet To E12 G A D H 10 Fixed expenses N 6,000 11 Net operating income $ 2,000 12 13 Questions: 14 15 1. What is the contribution margin per unit? 16 2. What is the contribution margin ratio? 17. 3. What is the variable expense ratio? 18 4. If sales increase to 1,001 units, what would be the increase in net operating income? 19 5. If sales decline to 900 units, what would be the net operating income? 20 6. If the selling price increases by $2 per unit and thes ales volume decreases by 100 units, what would be the net operating income? 21 7. If the variable cost per unit increases by S1, spending on advertising incrases by 51,500, and unit sales incrase by 250 units, what would be the net operating income? 22 8. What is the break-even point in unit sales? 23 9. What is the break-even point in dollar sales? 24 10. How many units must be sold to achieve a target profit of $5,000? 25 11. What is the margin of safety in dollars? 26 12. What is the degree of operating leverage? 227 28
Fone 3 Obow EX M20 M N 8. The Break Even point in unit sales is calculated as follows: D 1 1. The contribution margin per unit is calculated as follows: 2 3 4 3 7 2. The contribution margin ratio is calculated as follows: 9. The Break-Even point in dollar sales is calculated as follows 3 3. The variable expense ratio is calculated as follows 10. The number of units to achieve the target profit is called as follows: 94. The increase in net operating income is calculated as follows: Dineris & Data Calculations
um Clipboard Agent Sie Font K M N 11. The margin of safety in dollars is calculated as follows M20 Xf А D G H 23 24 25 S. If sales decline to 900 units, the net perating income would be computed as follows 20 27 12. The degree of operating leverage is calculated as follows 29 30 31 32 33 34 6. The new net operating income would be computed as follows: 35 36 37 38 39 40 11 42 7. The new net operating income would be computed as follows: Directions Data Calculations