Sales (25,200 units)Variable expensesContribution marginFixed expensesNet operating incomeTotal$ 226,800136,08090,72052,920$ 37,800Required:(Consider each of the four requirements independently):Per Unit$9.005.40$ 3.601. Assume the sales volume increases by 4,032 units:a. What is the revised net operating income?b. What is the percent increase in unit sales?c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income?2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by21%?3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $10,000, andthe number of units sold decreases by 3%?1a. Net operating income1b. Percent increase in unit sales4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 30 cents perunit, and the number of units sold decreases by 9%?1c. Percent increase in net operating income2. Net operating income (loss)3. Net operating income4. Net operating income%%

Hi studentSince there are multiple subparts asked, we will answer only first three subpartsNet…

Answered: Sales (25,200 units) Variable expenses…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sales (22,200 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 199,800 119,880 79,920 46, 620 $ 33,300 Per Unit $9.00 5.40 $ 3.60 Required: (Consider each of the four requirements independently): 1. Assume the sales volume increases by 3,330 units: a. What is the revised net operating income? b. What is the percent increase in unit sales? c. Using the most recent month's degree of operating leverage, what is the percent increase in net operating income? 2. What is the revised net operating income if the selling price decreases by $1.10 per unit and the number of units sold increases by 23%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit, fixed expenses increase by $7,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 7%?…
Sales (18,00e units) Variable expenses Contribution margin Fixed expenses $ 368,008 144,e00 216,eee 188,eee $ 36,000 Operating incone Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even polnt in sales dollars.
Sales (18,000 units) Variable expenses Contribution margin Fixed expenses $ 360,000 144,e00 216,eee 180,eee Operating income $ 36,eee Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio?
Net Income Planning Nolden Company has charged a selling price of $24 per unit, incurred variable costs of $15 per unit, and total fixed costs of $108,000. What unit sales volume is necessary to earn the following related amounts of net income before income tax? a. $18,000; b. $27,000; or c. equal to 20% of sales revenue. Round UP answers to the nearest unit, when applicable. (a) 0 (b) (C) 0 0 units units units
Blue Spruce Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Sales Cost of goods sold Selling and administrative expenses Net income Amount $5,049,000 3,465.000 445,500 $1.138,500 Per Unit $51.00 35.00 4.50 $11.50 Fixed costs for the period were cost of goods sold of $990,000, and selling and administrative expenses of $178.200. In July, normally a slack manufacturing month, Blue Spruce receives a special order for 9.900 basketballs at $32,00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.75 per unit because of shipping costs, but it would not increase fixed costs and expenses.
Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 300,000 120,000 180,000 60,000 $ 120,000 Per Unit $40 16 $24 If unit sales increase by 21%, then the best of estimate of the new net operating income is: Note: Do not round your intermediate calculations.
Miller Company's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (33,000 units) Variable expenses $ 198,000 99,000 $ 6.00 3.00 Contribution margin 99,000 $ 3.00 Fixed expenses 41,000 Net operating income $ 58,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 17%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 10%? 1. Net operating income 2. Net operating income e to search
Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) unit sales = 2,520, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be: rev: 07_17_2020_QC_CS-208650 Multiple Choice о о O $7,760. $5,240. $38,000. $27,520.
If net operating income is $83.000. average operating assets are $415,000, and the minimum required rate of return is 14%, what is the residual income? Multiple Choice $107,900 $33.200 $24,900 $58100
NAPOLEN SALES REVENUE IS $ 500000 , VARIABLE COST IS 20000 , FIXED C OST FOR THE YEAR IS $ 50000 SHOW THE NET PROFIT IN THE INCOME STATEMENT
Determine the missing amounts. Unit SellingPrice Unit VariableCosts Unit ContributionMargin Contribution MarginRatio 1. $750 $375 $ (a) % (b) 2. $450 $ (c) $153 % (d) 3. $ (e) $ (f) $760 40 %
Miller ompany s Sales (34,000 units) Variable expenses Contribution margin Fixed expenses Net operating income - Required: (Consider each case independently): Total $ 272,000 170,000 1. Net operating income 2. Net operating income $ 3. Net operating income $ 4. Net operating income 102,000 47,000 $ 55,000 1. What is the revised net operating income if unit sales increase by 19%? 2. What is the revised net operating income if the selling price decreases by $1.40 per unit and the number of units sold increases by 16%? 3. What is the revised net operating income if the selling price increases by $1.40 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 5%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 10%? $ 74,380 16,104 89,120 Per Unit $ 8.00 5.00 $ 3.00 Prev 1 of 1 Next > Search

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