Giannini Incorporated, which produces and sells a single product, has provided the following contribution format income statement forMarch:Sales (5,000 units)Variable expenses$ 295,000150,000Contribution marginFixed expenses145,000104, 200Net operating income$40,800Required:Redo the company's contribution format income statement assuming that the company sells 5,200 units. (Do not round intermediatecalculations.)

Name: Giannini Incorporated, which produces and sells a single product, has
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Giannini Incorporated, which produces and sells a single product, has provided the following contribution format income statement forMarch:Sales (5,000 units)Variable expenses$ 295,000150,000Contribution marginFixed expenses145,000104, 200Net operat

Sales price per unit = Sales / no. of units = $295000/5000 units = $59 per unit Variable expenses…

Business

Accounting

Giannini Incorporated, which produces and sells a single product, has provided the following contribution format income statement for March: Sales (5,000 units) Variable expenses Contribution margin Fixed expenses $ 295,000 150, e00 145,000 104, 200 Net operating income 2$ 40,800 Required: Redo the company's contribution format income statement assuming that the company sells 5,200 units. (Do not round intermediate calculations.)

Giannini Incorporated, which produces and sells a single product, has provided the following contribution format income statement for March: Sales (5,000 units) Variable expenses Contribution margin Fixed expenses $ 295,000 150, e00 145,000 104, 200 Net operating income 2$ 40,800 Required: Redo the company's contribution format income statement assuming that the company sells 5,200 units. (Do not round intermediate calculations.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 17MCQ: Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard...

See similar textbooks

Similar questions

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.
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.)
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?
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.) What is the contribution margin per unit? What is the contribution margin ratio? What is the variable expense ratio? If sales decline to 1,300 units, what would be the net operating income (loss)? If the selling price increases by $3 per unit and the sales volume decreases by 100 units, what would be the net operating income? What is the break-even point in unit sales? What is…
Giannini Inc., which produces and sells a single product, has provided the following contribution format income statement for March: Sales (5,000 units) $ 300,000 Variable expenses 175,000 Contribution margin 125,000 Fixed expenses 104,300 Net operating income $ 20,700 Required: Redo the company's contribution format income statement assuming that the company sells 5,200 units. (Do not round intermediate calculations.)
[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?
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?
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
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 $ 50,000 Variable expenses 27,500 Contribution margin 22,500 Fixed expenses 14,850 Net operating income $ 7,650 14. 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 $14,850 and the total fixed expenses are $27,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage?
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 $ 50,000 Variable expenses 27,500 Contribution margin 22,500 Fixed expenses 14,850 Net operating income $ 7,650 14. 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 $14,850 and the total fixed expenses are $27,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? ____________________________________________________________________________________ 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 $ 50,000 Variable expenses 27,500 Contribution margin 22,500…
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%.
Patchi, which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at ₱15 per unit Production costs: Variable: ₱4 per unit Fixed: ₱260,000 Selling and administrative costs: Variable: ₱1 per unit Fixed: ₱32,000 The contribution margin that the company would disclose on an absorption-costing income statement is: A. ₱0 B. ₱147,000 c. ₱166,500 D. ₱370,000