Part 2.Bhiner Company prepared the following contribution format income statement basedon a sales volume of 1,000 units (the relevant range of production is 500 units to1,500 units).Sales$25,000Variable expenses10.000ontribution margin15,000+Fixed expenses8.000Net operating income$ 7.000Required:(Answer each question independently and always refer to the original data unlessinstructed otherwise.) (Show all work/calculations. No credit will be given without f. If the selling price increases by $4 per unit and the sales volume decreases by 200units, what would be the net operating income?If the variable cost per unit increases by $2, spending on advertising increases byg.$1.000, and unit sales increase by 240 units, what would be the net operatingincome?h. What is the break-even point in unit sales?i. What is the break-even point in dollar sales?i. How units must be sold to achieve a target profit of $7,500?many

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f. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the net operating income? g. If the variable cost per unit increases by $2, spending on advertising increases by $1,000, and unit sales increase by 240 units, what would be the net operating income? h. What is the break-even point in unit sales? i. What is the break-even point in dollar sales?

f. If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the net operating income? g. If the variable cost per unit increases by $2, spending on advertising increases by $1,000, and unit sales increase by 240 units, what would be the net operating income? h. What is the break-even point in unit sales? i. What is the break-even point in dollar sales?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-17 Refer to the information for Barnard Company on the previous page. The total period expense is a. 276,000. b. 200,000. c. 76,000. d. 40,000. e. 36,000.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-14Refer to the information for Barnard Company above. Conversion cost per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
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$ 55,000Variable expenses33,000Contribution margin22,000Fixed expenses14,960Net operating income$ 7,04015. Assume that the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $14,960 and the total fixed expenses are $33,000. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in unit sales? (Round your intermediate calculations and final answer to 2 decimal places.)
The following information applies to the questions displayed below.] Baron 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 $ 80,000 Variable expenses 52,000 Contribution margin 28,000 Fixed expenses 21,840 Net operating income $ 6,160 Please donot provide solution in image format provide solution in step by step format and asap
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) 58 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 Variable expenses Contribution margin Fixed expenses Net operating income $ Increase in net operating income $ 24,500 13,500 11,000 7,700 3,300 Required: If sales increased to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)
[The following information applies to the questions displayed below.] 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 $ 70,000 Variable expenses 38,500 Contribution margin 31,500 Fixed expenses 23,310 Net operating income $ 8,190 4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.) 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,600, and unit sales increase by 220 units, what would be the net operating income?
Ehrlich Enterprises prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 1,000 units to 5,000 units): Contribution Margin Income Statement Sales $ 48,000 Variable expenses 30,000 Contribution margin 18,000 Fixed expenses 10,000 Net operating Income $ 8,000 Required: Show all calculations! (Answer each question independently and always refer to the original data unless instructed otherwise. Round all uneven answers to 2 decimal places.) How many units must be sold to achieve a target profit of $7,000? What is the margin of safety in dollars? If fixed costs increase by 12%, what will be the new breakeven point in units? What is the degree of operating leverage? Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 15% increase in sales?
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The Mariachi Company prepared the following contribution format income statement based on a sales volume of 1,200 units (the relevant range of production is 500 units to 2,000 units): Sales 26,400Variable expenses 18,000Contribution margin 8,400Fixed expenses 6,200Net operating income 2,200 What is the break-even point in dollar sales?
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Miller Company’s most recent contribution format income statement is shown below:Total Per UnitSales (20,000 units) ............................. $300,000 $15.00Variable expenses ............................... 180,000 9.00Contribution margin ............................. 120,000 $ 6.00Fixed expenses ................................... 70,000Net operating income .......................... $ 50,000Required:Prepare a new contribution format income statement under each of the following conditions (consider eachcase independently):1. The number of units sold increases by 15%.2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.