Division Corporation prepared the following contribution format income statement based on sales volume of 1 0 ,
Fantastic news! We've Found the answer you've been seeking!
Question:
Division Corporation prepared the following contribution format income statement based on sales volume of units the relevant range of production is units to units
Sales $
Variable expense
Contribution margin
Fixed expenses
Net operating Income $
Answer the following questions:
What is the contribution margin per unit?
What is the contribution margin ratio?
What is the variable expense ratio?
If sales increased to units, what would be the increase in net operating income?
If sales declined to units, what would be the net operating income?
If the selling price increased by $ per unit and the sales volume decreased by units, what would be the net operating income?
If the variable cost per unit increased by $ spending on advertising increased by $ and unit sales increased by units, what would be the net operating income?
What is the breakeven point in unit sales?
What is the breakeven point in sales dollars?
How many units must be sold to achieve a target profit of $
What is the margin of safety in dollars? What is the margin of safety percentage?
What is the degree of operating of operating leverage?
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date: