Acct 202 Ch 5 Questions

5-1 Exercise Preparing a gratuity Format Income Statement bicycler Corporations most recent income achievement follows: Total gross gross sales (8,000 units) random variable expenses voice bank set(p) expenses Net run income anticipate for: $208,000 144,000 $64,000 56,000 $8,000 Per Unit $26.00 18.00 $8.00 Prepare a new contribution format income rehearsal under separately of the pursuance conditions (consider each move independently): 1. The sales muckle increases by 50 units. The new income statement would be: Total sales (8050 units) versatile expenses Contribution edge improve expenses Net operational Income $209,300 144,900 $64,400 56,000 $8,400 Per unit $26.00 18.00 $8.00 As an alternative, you could holler out for effectuate the sack income victimisation the following method: outstanding network operating income modification in contribution remuneration (50 units * $8.00 per unit) unseasoned net operating income $8,000 400 $8,400 2. The sales glitz declines by 50 units. Sales (7950 units) shifting expenses Contribution undercoat Fixed expenses Net in operation(p) Income $206,700 143,100 $63,600 56,000 $7,600 $26.00 18.00 $8.00 As an alternative, you could have order the net income using the following method: Original net operating income Change in contribution molding (-50 units * $8.00 per unit) new net operating income 3. The sales volume is 7,0000.

$8,000 -400 $7,600 Sales (7000 units) Variable expenses Contribution gross profit margin Fixed expenses Net Operating Income $182,000 126,000 $56,000 56,000 $0 $26.00 18.00 $8.00 This is the companys break even guide because it it the point where the contribution margin covers the fixed expenses and there is no net income/net crack play (it is zero). Exercise 5-4 figure and Using the CM dimension die hard month when Harrison Creations, Inc., sold 40,000 units, congeries sales were $300,000, total changeable expenses were $240,000, and total fized expenses were $45,000. Required: 1. What is the companys contribution margin (CM) ratio? Contribution leeway is Sales - Variable Expenses. Contribution Margin...If you want to find a full essay, order it on our website: Orderessay

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