Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in response to changes in unit sales? Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $ 375,000 $ 25,000 $ 250,000 $ 12,500 ? $ 15,000 $ 18,750 ? $75,000 $ 22,500 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in response to changes in unit sales? Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $ 375,000 $ 25,000 $ 250,000 $ 12,500 ? $ 15,000 $ 18,750 ? $75,000 $ 22,500
Expert Answer:
Answer rating: 100% (QA)
The primary financial statements of an entity are linked with the net income on the income statement it is needed to balance the accounting equation o... View the full answer
Related Book For
Introduction to Algorithms
ISBN: 978-0262033848
3rd edition
Authors: Thomas H. Cormen, Charles E. Leiserson, Ronald L. Rivest
Posted Date:
Students also viewed these accounting questions
-
Which type of cost system, process or job order, would be best suited for each of the following: (a) TV assembler, (b) Building contractor, (c) Automobile repair shop, (d) Paper manufacturer, (e)...
-
The most recent monthly contribution format income statement for Reston Company is given below: Management is disappointed with the company's performance and is wondering what can be done to improve...
-
Assume management predicts that the selling price per unit and variable cost per unit will be the same in 2014 as in 2013. Fixed manufacturing costs and marketing, distribution, and customer-service...
-
A ball is located 8 0 m above the sea level. Its initial velocity is 1 0 0 m/s and the angle between the horizontal is 37 degrees. How long will it take for the ball to hit the surface? g=9.8m/s 2
-
(Multiple Choice) Questions 14 use the following data: Sunny Day Company sells $400,000 of 13%, 10-year bonds for 97 on April 1, 2012. The market rate of interest on that day is 13.5%. Interest is...
-
The mechanism consists of two rods, AB and BC, which have weights W 1 and W 2 , respectively, and a block at C of weight W 3 . Determine the kinetic energy of the system at the instant shown, when...
-
Suppose Emory rejects the lease we analyzed, and the lessor agrees to lower the lease rate to $11,700 per year. Does this change make the lease attractive?
-
As the bookkeeper of Parkers Plowing, you have been asked to complete the entire accounting cycle for Parker from the following information. 201X Jan. 1 Parker invested $14,000 cash and $9,000 worth...
-
17. Moment of inertia (M.I) of four bodies, having same mass and radius, and reported as: I1 = M.I. of thin circular ring about its diameter 18. 12 = M.I. of circular disc about an axis perpendicular...
-
You own a flooring company that sells the following items. Product Premium Carpet Basic Carpet Luxury Vinyl Flooring Standard Vinyl Flooring Delivery Fee Installation Price $4.00 / square ft....
-
Question 4 Kilo Plc are undertaking a review of its product portfolio and are considering re-designing one of its most popular products, the Romeo, which has been very profitable but one of its...
-
Are external certification programs (in all jobs) becoming more important? Why?
-
Identify some things (other than increasing pay) that could be done by a manager to increase productivity and employee engagement and decrease absenteeism and turnover. Make a list for each item.
-
When oil hit $26.21 a barrel in 2016, down from nearly $100 a barrel from 5 years earlier, jobs in the oil service industry were rare and people out of work. Everyone [was] so hungry, it [was] like...
-
Assume that you are a fairly high-level manager in your company and that one of your employees comes to you to tell you that other employees are attempting to unionize the company. What would your...
-
Name some situations in HRM when you would want to use either economic value added (EVA) or return on investment (ROI) as an analytical tool.
-
At the beginning of the year 2003, accrued liabilities of a pension plan for the employees of AAA Life Insurance Company were 100,000. The assets of the plan at the same time were 150,000. On January...
-
Suppose that a flow network G = (V, E) violates the assumption that the network contains a path s t for all vertices V. Let u be a vertex for which there is no path s u t. Show that there must...
-
Prove that L P L if and only if L P L.
-
Prove that if an odd integer n > 1 is not a prime or a prime power, then there exists a nontrivial square root of 1 modulo n.
-
Show that, with the array representation for storing an n-element heap, the leaves are the nodes indexed by n/2 + 1, n/2 + 2, . . . ,n.
-
Explain the effect of each of these on the shape and position of the countrys production-possibility curve: a. A proportionate increase in the total supplies (endowments) of all factors of...
-
A free-trade equilibrium exists in which the United States exports machinery and imports clothing from the rest of the world. The goods are produced with two factors: capital and labor. The trade...
-
Developing a new exportable natural resource can cause problems. One, discussed later in this chapter, is the problem of immiserizing growth: If you are already exporting and your export expansion...
Study smarter with the SolutionInn App