Question: The companies contribution Income statement for the next year is given: sales(20000 Units) =$200000 less: variable expense =($900000) contribution margin = $300000 less : fixed

The companies contribution Income statement for the next year is given: sales(20000 Units) =$200000 less: variable expense =($900000) contribution margin = $300000 less : fixed cost =($240000) Net operating income = $ 60000

Instructions:

1. calculate the company sale ratio and variable expense ratio.

2. Compute the company break even points in both unit sales and dollar sales.

3. Assume that sales increase $400000 next year,by how much company's net operating income will increase

Step by Step Solution

★★★★★

3.37 Rating (138 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Sales Ratio and Variable Expense Ratio Sales Ratio Contribution Margin Ratio This ratio indicates the portion of each sales dollar that contributes to covering fixed costs and generating profit Sale... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The company's contribution income statement for the next year is given below: Sale (20000 units) = $1200000 Less- Variable cost= ($900000) Contribution margin = $300000 Less- Fixed expenses =...

1. What are two accounts in the Choice Hotels balance sheet that show the biggest change over the past 2 years? What information in the 10-K report helps to explain these changes? 2. What are two...

Professor Sherry Turtle (2011) PowerPoint came form powerful ideas from some educators that wanted to make programming part of the regular curriculum for K-12 education (a designation for the sum of...

What are the premises for successful paleostress analysis?

What is the difference between an account payable and a note payable?

On January 1, 2018, Winn Heat Transfer leased office space under a three-year operating lease agreement. The arrangement specified three annual rent payments of $80,000 each, beginning December 31,...

6.15 A normal random variable X has mean 35 and standard deviation 10. Find a value of X that has area 0.01 to its right. This is the 99th percentile of this normal distribution.

Identify two companiesone that you believe pursues a lowest-cost strategy and another that pursues a differentiation strategy. Relying on personal knowledge, company annual reports, or articles in...

Star co, was organized on August 1 of the current year. Projected sales for the next three months are as follows: The company expects to sell 50% of its merchandise for cash. Of the sales on account,...

Other information: Intercompany sales: On January 1, Year 10: Salt had on hand $30,000 of inventory purchased from Pillar. Pillar had on hand $90,000 of inventory purchased from Salt. Both companies...

The following information is taken from the 2020 annual report for Best Buy (amounts are in millions and Best Buy's 2020 Fiscal Year ended on February 1, 2020): Interest expense Inventory (Feb 1,...

haimi, [25/05/2022 3:47 PM] A small business enterprise makes dresses and trousers. To make a dress requires 2 hours of cutting and 2 hours of sewing. To make trousers requires 1 hour of cutting and...

A training organisation purchases aheavy volume copier for large workloadson 1/7/2022 for $36,000 [GST exclusive]. It has a useful life of 4 years and a residual value of $4,000 [GST exclusive]....

The given multivariable function is as follows: f ( x , y ) = ky 2 - 2 y 3 - kx 3 + 2 kxy . A. Given that the function f ( x,y ) in the Assumptions section has a critical point at (0,0), use a second...

How often should braille accommodations be provided? A. Never, not enough people use it. B. Always, regardless of how many people use it. C. Sometimes if it was requested by someone who needs it. D....

Cupola Fan Corporation issued 12%, $580,000, 10-year bonds for $552,000 on June 30, 2024. Debt issue costs were $3,300. Interest is paid semiannually on December 31 and June 30. One year from the...

In low - earning periods, too much _ _ _ _ _ _ _ _ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival. Group of answer choices tax liability...

Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A (by letter) with the item from List B that is...

What is a Production Readiness Review (PRR) and what is it intended to accomplish?

What is a Preliminary Design Review (PDR) and what is it intended to accomplish?

Contact an organization that develops commercial products. (a) Research how the organization conducts commercial technical reviews. (b) Develop a mapping between the two types of approaches to...