QPO Corporation prepared the following contribution format income statement based on a sales volume of 2,740...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QPO Corporation prepared the following contribution format income statement based on a sales volume of 2,740 units units. Sales Variable expenses Contribution margin Fixed expenses Net income $322,498 135,356 187,142 25,075 $162,067 Each of the following questions is independent. Refer back to the original data unless the question mentions otherwise. Round your answers in a way that makes sense for the question or as requested. 1. Calculate the contribution margin ratio. (round to the nearest whole percent and if you use CMR in future calculations, use the value as rounded here/input code: 0) 2. Calculate the contribution margin per unit. (round to the nearest hundredths place and if you use UCM in future calculations, use the value as rounded here/input code 0.00) 3. If sales increase by one unit, how much would be the increase in Net Income? (enter your answer to the nearest hundredth of a dollar/input code 0.00) 4. If sales decline to 2,150 units, how much would be the new Net Income? (round to the nearest whole dollar/input code: 0) 5. If the selling price increases by $16.50 per unit and the sales volume decreases by 275 units, how much would be the revised Net Income? (round to the nearest whole dollar/input code: 0) 6. How many dollars of sales are required to earn a target net income of $115,000? (round UP to the nearest whole dollar/input code: 0) 7. Calculate the degree of operating leverage. (round to the nearest hundredths place and if you use operating leverage in future calculations, use the value as rounded here/input code: 0.00) 8. Estimate the percentage increase in Net Income if sales increase by 10%. (round to the nearest hundredths place/input code: 0.00) % % QPO Corporation prepared the following contribution format income statement based on a sales volume of 2,740 units units. Sales Variable expenses Contribution margin Fixed expenses Net income $322,498 135,356 187,142 25,075 $162,067 Each of the following questions is independent. Refer back to the original data unless the question mentions otherwise. Round your answers in a way that makes sense for the question or as requested. 1. Calculate the contribution margin ratio. (round to the nearest whole percent and if you use CMR in future calculations, use the value as rounded here/input code: 0) 2. Calculate the contribution margin per unit. (round to the nearest hundredths place and if you use UCM in future calculations, use the value as rounded here/input code 0.00) 3. If sales increase by one unit, how much would be the increase in Net Income? (enter your answer to the nearest hundredth of a dollar/input code 0.00) 4. If sales decline to 2,150 units, how much would be the new Net Income? (round to the nearest whole dollar/input code: 0) 5. If the selling price increases by $16.50 per unit and the sales volume decreases by 275 units, how much would be the revised Net Income? (round to the nearest whole dollar/input code: 0) 6. How many dollars of sales are required to earn a target net income of $115,000? (round UP to the nearest whole dollar/input code: 0) 7. Calculate the degree of operating leverage. (round to the nearest hundredths place and if you use operating leverage in future calculations, use the value as rounded here/input code: 0.00) 8. Estimate the percentage increase in Net Income if sales increase by 10%. (round to the nearest hundredths place/input code: 0.00) % %
Expert Answer:
Answer rating: 100% (QA)
To answer the questions lets use the given information Sales 322498 Variable expenses 135356 Contribution margin 187142 Fixed expenses 25075 Net incom... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
Students also viewed these accounting questions
-
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales. . . . . . . . ....
-
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales...
-
A function is given according to the table below. Find the derivative for x = 0.70 X f(x) 0.35 1.5215 0.40 1.5059 0.45 1.4879 0.50 1.4674 0.55 1.4442 0.60 1.4180 0.65 1.3886
-
Graph the sets of points whose polar coordinates satisfy the equations and inequalitie. = 2/3, r -2
-
An article in the Journal of the Environmental Engineering Division (Distribution of Toxic Substances in Rivers, 1982, Vol. 108, pp. 639649) investigates the concentration of several hydrophobic...
-
On an uncomfortable summer day, the air is at 87?F and 80% relative humidity. A laboratory air conditioner is to deliver 1.00 x 10 3 ft 3 /min of air at 55?F in order to maintain the interior air at...
-
When parties must arbitrate their disputes?
-
In a 3M Privacy Filters poll, 806 adults were asked to identify their favorite seat when they fly, and 492 of them chose a window seat. Use a 0.01 significance level to test the claim that the...
-
Find five parliamentary countries and examine how heads of state are selected in those countries. How powerful are the heads of state in those countries?
-
The irreversible, first-order reaction of gaseous A B occurs in spherical catalyst pellets with a radius of 2 mm. For this problem, the molecular diffusivity of A is 1.2 X 10 1 cm 2 /s and the...
-
Label the H1, H2 etc into its respective regions (ie. aliphatic and aromatic regions)? H4/H7 H3/H8 1,2 H 5/H6 H2/H9 HN H1 H2 H3H6' H4 H5 NH [ppm] E
-
cost of debt using financial calculator and show answer: Prime's current capital structure consists of 40% equity and 60% debt. Its equity consists of 200,000 common shares. The company is...
-
Analyze the following case-study A company manufactures 2 products 'XZ' and 'YZ' using a single production process. The following cost data is available for the same: Particulars 'XZ' 'YZ' Selling...
-
Find the constant b > 6 such that the average value of the function f(x) 2 In x = on the interval [6, b] is equal to 15 /(b-6). Answer: 11.5 (71.33) Question 5 Given the following general terms an,...
-
Beach Style is a manufacturer of outdoor furniture. The firm\'s product line includes four side tables designs: Production: Cement - $ 4 4 1 . 1 8 Polystone - $ 0 Travertine - Look - $ 3 9 7 1...
-
1. Brasher Company manufactures and sells a single product that has a positive contribution margin. If the selling price and variable expenses both decrease by 5% and fixed expenses do not change,...
-
briefly discuss generic strategies model; what is it also called , and why is it labled generic?
-
Suppose that the laptop of Prob. 2.16 is placed in an insulating briefcase with a fully charged battery, but it does not go into sleep mode, and the battery discharges as if the laptop were in use....
-
The following data relating to units shipped and total shipping expense have been assembled by Archer Company, a wholesaler of large, custom-built air-conditioning units for commercial buildings:...
-
Search the Internet or contact your local chamber of commerce or local chapter of the Institute of Management Accountants to find the names of manufacturing companies in your area. Call or make an...
-
Diego Company manufactures one product that is sold for $80 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations...
-
An important reason why repeated-measures designs are more powerful than between-subject designs is that we can factor out individual differences in the dependent variable. (T or F)
-
Why is there no explicit interaction term in the design that we have been examining?
-
Why are some designs called between-subjects designs?
Study smarter with the SolutionInn App