Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (67,100 units @ $32.00) $2,147,200 Total variable cost 579,744 Contribution margin $ 1,567,456 Total fixed cost 1,693,600 Operating income $ (126,144) Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin $ Break-even units units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? $ 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. Contribution margin ratio % Break-even sales revenue $ Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be? $
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (67,100 units @ $32.00) $2,147,200 Total variable cost 579,744 Contribution margin $ 1,567,456 Total fixed cost 1,693,600 Operating income $ (126,144) Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin $ Break-even units units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? $ 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. Contribution margin ratio % Break-even sales revenue $ Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be? $
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
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 47E: Klamath Company produces a single product. The projected income statement for the coming year is as...
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ch7-47
Klamath Company produces a single product. The
Sales (67,100 units @ $32.00) | $2,147,200 |
Total variable cost | 579,744 |
Contribution margin | $ 1,567,456 |
Total fixed cost | 1,693,600 |
Operating income | $ (126,144) |
Required:
1. Compute the unit contribution margin and the units that must be sold to break even.
Unit contribution margin | $ |
Break-even units | units |
2. Suppose 10,000 units are sold above breakeven. What is the operating income?
$
3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue.
Contribution margin ratio | % |
Break-even sales revenue | $ |
Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be?
$
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VIEW2. suppose 10000 units are sold above breakeven. what is operating income
VIEW3. contribution Ratio and using contribution ratio to calculate the break even point in sales
VIEWsuppose that revenues are $200,000 more than expected for the coming year. total operating income?
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