Goodson Inc. produces and sells a single product. The company has provided its contribution format income...
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Goodson Inc. produces and sells a single product. The company has provided its contribution format income statement for March. Sales (4,530 units) Variable costs Contribution margin Fixed costs Operating profit $430,350 267,270 163,080 135,600 $ 27,480 If the company sells 4,330 units, its operating profit should be closest to: Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income The contribution margin ratio for the current year is: $538,000 440,000 294,000 790,000 788,000 288,000 $3,880,000 2,062,000 $1,818,000 1,076,000 $ 742,000 Vegas Company has the following unit costs: Variable manufacturing overhead Direct materials Direct labor Fixed manufacturing overhead Variable marketing and administrative $36 26 25 18 13 3 Vegas produced and sold 13,000 units. If the product sells for $130, what is the gross margin? Goodson Inc. produces and sells a single product. The company has provided its contribution format income statement for March. Sales (4,530 units) Variable costs Contribution margin Fixed costs Operating profit $430,350 267,270 163,080 135,600 $ 27,480 If the company sells 4,330 units, its operating profit should be closest to: Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income The contribution margin ratio for the current year is: $538,000 440,000 294,000 790,000 788,000 288,000 $3,880,000 2,062,000 $1,818,000 1,076,000 $ 742,000 Vegas Company has the following unit costs: Variable manufacturing overhead Direct materials Direct labor Fixed manufacturing overhead Variable marketing and administrative $36 26 25 18 13 3 Vegas produced and sold 13,000 units. If the product sells for $130, what is the gross margin?
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SOLUTION To calculate the operating profit for the company if it sells 4330 units we need to use the ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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