Following is the income statement for Monet Mufflers for the month of June 2024: (Click the...
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Following is the income statement for Monet Mufflers for the month of June 2024: (Click the icon to view the contribution margin income statement.) Read the requirements. Requirement 1. Calculate the degree of operating leverage. (Round to four decimal places.) Select the labels and enter the amounts to calculate the degree of operating leverage for Monet Mufflers. Contribution margin Operating income Degree of operating leverage 3.2500 $ 6,000 Requirement 2. Use the degree of operating leverage calculated in Requirement 1 to estimate the change in operating in per unit). (Round interim calculations to four decimal places and final answer to the nearest dollar.) The estimated change in operating income will be $ 2,925 Requirement 3. Verify your answer in Requirement 2 by preparing a contribution margin income statement with the total Monet Mufflers Contribution Margin Income Statement Month Ended June 30, 2024 Net Sales Revenue 19,500 Variable Costs Contribution Margin Fixed Costs S Operating Income $ Get more help. Data table CHU Monet Mufflers Contribution Margin Income Statement Month Ended June 30, 2024 Net Sales Revenue (260 units x $225 per unit) Variable Costs (260 units x $150 per unit) Contribution Margin Fixed Costs Operating Income Following is the income statement for Monet Mufflers for the month of June 2024: (Click the icon to view the contribution margin income statement.) Read the requirements. Requirement 1. Calculate the degree of operating leverage. (Round to four decimal places.) Select the labels and enter the amounts to calculate the degree of operating leverage for Monet Mufflers. Contribution margin Operating income Degree of operating leverage 3.2500 $ 6,000 Requirement 2. Use the degree of operating leverage calculated in Requirement 1 to estimate the change in operating in per unit). (Round interim calculations to four decimal places and final answer to the nearest dollar.) The estimated change in operating income will be $ 2,925 Requirement 3. Verify your answer in Requirement 2 by preparing a contribution margin income statement with the total Monet Mufflers Contribution Margin Income Statement Month Ended June 30, 2024 Net Sales Revenue 19,500 Variable Costs Contribution Margin Fixed Costs S Operating Income $ Get more help. Data table CHU Monet Mufflers Contribution Margin Income Statement Month Ended June 30, 2024 Net Sales Revenue (260 units x $225 per unit) Variable Costs (260 units x $150 per unit) Contribution Margin Fixed Costs Operating Income
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Requirement 1 Degree of operating leverage Contribution margin Operating income ... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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