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): $ 15,000 9,000 Sales Variable expenses Contribution margin Fixed expenses 6,000 3,120 $ 2,880 Net operating income 6. If the selling price increases by $2 per unit and the sales volume decreales by 100 units, what would be the net operating income?
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Answer 1. Contribution margin per unit = Total contribution / No. of units = 8000 / 1000 = 8 per…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The net income is calculated as difference between sales and total expenses incurred. The total…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: >Operating Income [net] is the amount left from total sales revenue after deducting variable as…
Q: income statement based on a sales volume of 1,000 units (the relevant range of production is 500…
A: The operating leverage is calculated as contribution margin divided by EBIT.
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A: Selling price per unit = $415,800/6300 Selling price per unit = $66 Variable expense per unit =…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin ratio = (Contribution margin / sales) x 100 = (13500/45000)*100 = 30%
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Operating income: Income statement reports revenues and expenses from business operations, and the…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Cost accounting is one of the branches of accounting. Under this branch, all types of costs and…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The change in operating income owing to a change in sales is measured by the degree of operating…
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A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break even point is computed by dividing the fixed cost by contribution per unit. Fixed cost=$2250…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A:
Q: Stockmaster Corporation has provided the following contribution format income statement. Assume that…
A: A margin of safety is a built-in cushion that allows for some losses to occur without having a…
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A: The margin of safety is the excess value of the amount the firm earns over its break-even sales. It…
Q: Smith Company produces and sells a single product and prepared the following contribution format…
A: Variable Expenses Per unit = $ 12100 / 1000 units = $ 12.1 Sales Per unit = $ 20300 / 1000 unit = $…
Q: A recent income statement of Nixon Corporation reported the following data: Sales revenue P…
A: Contribution margin means sales revenue earned by the business over and above its variable costs.…
Q: Oslo company prepared the following contrubition format income statement based on a sales volume of…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
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A: Margin of safety (in dollars)= Total sales - Break even sales
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A: The contribution margin is calculated as difference between sales and variable costs.
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A: 1. Break Even Point - Break even point is the point where company is in a position at which there is…
Q: Given below are part of the recent income statement of Golden Corporation reported this year: Sales…
A: Total contribution margin = Sales revenue - Variable costs = 10,000,000 - 6,000,000 = 4,000,000
Q: Orion recently reported sales revenues of OMR 89000, a total contribution margin of OMR 23000, and…
A: Contribution is the remaining part of total sale value which an entity gets when the sale value is…
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A: Definition: Contribution Margin: The process or theory which is used to judge the benefit given by…
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A: Lets discuss the basics. Contribution is a sales less variable cost of the company. Formula:- Sales…
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Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Break-even analysis is a technique used widely by the production management. It helps to determine…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin is the amount of revenue or sales which is left after deducting variable…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Formula: Degree of operating leverage = Contribution margin / Net operating income.
Q: slo Company prepared the following contribution format income statement based on a sales volume of…
A: Variable Cost - The total cost of production of a good comprises of the total fixed cost of…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: SOLUTION CONTRIBUTION MARGIN PER UNIT = SELLING PRICE PER UNIT - VARIABLE COST PER UNIT . = 70-38.5…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage = Contribution margin / Net operating income = $35000/4900 = 7.14
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The question is related to Marginal Costing. The Contribution Margin is calculated with the help of…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Break-even point is that point at which a company is making no profit no loss. In other words at…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Oslo company prepared the following contrubition format income statement based on a sales volume of…
A: Net operating income is the measure of the profit of the business that reports on its income…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
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A: The margin of safety is the amount of profitability that results from the difference between the…
Q: Hei Below is the contribution format income statement for a company based on a sales volume of 1,000…
A:
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Information given in the question is as follows: Sales $ 30,000 Variable expenses 16,500…
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A: Contribution margin per unit = contribution margin / no. Of units sold = $30000/3000 units = $10…
Q: 9. What is the break-even point in dollar sales?
A: Break Even point in Dollar Sales = Fixed Expenses/Contribution Margin Ratio Contribution Margin…
Q: Rovinsky Corp, a company that produces and sells a single product, has provided its contribution…
A: Compute the contribution margin per unit as shown below: Contribution margin per unit =…
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A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…
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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. 2-14Refer 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.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. 2-13Refer to the information for Barnard Company above. Prime cost per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.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.
- Use the following information for Multiple-Choice Questions 2-3 and 2-4: Wachman Company produces a product with the following per-unit costs: Last year, Wachman produced and sold 2,000 units at a price of 75 each. Total selling and administrative expense was 30,000. 2-3Refer to the information for Wachman Company on the previous page. Conversion cost per unit was a. 21. b. 25. c. 34. d. 40. e. None of these.The production of a new product required Zion Manufacturing Co. to lease additional plant facilities. Based on studies, the following data have been made available: Estimated annual sales24,000 units Selling expenses are expected to be 5% of sales, and net income is to amount to 2.00 per unit. Required: 1. Calculate the selling price per unit. (Hint: Let X equal the selling price and express selling expense as a percentage of X.) 2. Prepare an absorption costing income statement for the year ended December 31, 2016. 3. Calculate the break-even point expressed in dollars and in units, assuming that administrative expense and factory overhead are all fixed but other costs are fully variable.Thomas Corporation produces heating units. The following values apply for a part used in their production (purchased from external suppliers): D = 12,500 Q = 250 P = 45 C = 4.50 Required: 1. For Thomas, calculate the ordering cost, the carrying cost, and the total cost associated with an order size of 250 units. 2. Calculate the EOQ and its associated ordering cost, carrying cost, and total cost. Compare and comment on the EOQ relative to the current order quantity. 3. What if Thomas enters into an exclusive supplier agreement with one supplier who will supply all of the demands with smaller, more frequent orders? Under this arrangement, the ordering cost is reduced to 0.45 per order. Calculate the new EOQ and comment on the implications.
- Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The segmented income statement for a typical quarter follows. Includes depreciation. The density gauge uses a subassembly that is purchased from an external supplier for 25 per unit. Each quarter, 2,000 subassemblies are purchased. All units produced are sold, and there are no ending inventories of subassemblies. Morrill is considering making the subassembly rather than buying it. Unit-level variable manufacturing costs are as follows: No significant non-unit-level costs are incurred. Morrill is considering two alternatives to supply the productive capacity for the subassembly. 1. Lease the needed space and equipment at a cost of 27,000 per quarter for the space and 10,000 per quarter for a supervisor. There are no other fixed expenses. 2. Drop the thickness gauge. The equipment could be adapted with virtually no cost and the existing space utilized to produce the subassembly. The direct fixed expenses, including supervision, would be 38,000, 8,000 of which is depreciation on equipment. If the thickness gauge is dropped, sales of the density gauge will not be affected. Required: 1. Should Morrill Company make or buy the subassembly? If it makes the subassembly, which alternative should be chosen? Explain and provide supporting computations. 2. Suppose that dropping the thickness gauge will decrease sales of the density gauge by 10 percent. What effect does this have on the decision? 3. Assume that dropping the thickness gauge decreases sales of the density gauge by 10 percent and that 2,800 subassemblies are required per quarter. As before, assume that there are no ending inventories of subassemblies and that all units produced are sold. Assume also that the per-unit sales price and variable costs are the same as in Requirement 1. Include the leasing alternative in your consideration. Now, what is the correct decision?
- Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.Break-even sales under present and proposed conditions Kearney Company, operating at full capacity, sold 400,000 units at a price of $246.60 per unit during 20Y5. Its income statement for 20Y5 is as follows: The division of costs between fixed and variable is as follows: Management is considering a plant expansion program that will permit an increase of $8,631,000 (35.000 units at $246.60) in yearly sales. The expansion will increase fixed costs by $3,600,000 but will not affect the relationship between sales and variable costs. Instructions Determine for 20Y5 the total fixed costs and the total variable costs.Break-even sales under present and proposed conditions Kearney Company, operating at full capacity, sold 400,000 units at a price of $246.60 per unit during 20Y5. Its income statement for 20Y5 is as follows: The division of costs between fixed and variable is as follows: Management is considering a plant expansion program that will permit an increase of $8,631,000 (35.000 units at $246.60) in yearly sales. The expansion will increase fixed costs by $3,600,000 but will not affect the relationship between sales and variable costs. Instructions Determine the maximum operating income possible with the expanded plant.