Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,700 units) Variable expenses Contribution margin Fixed expenses $ 92,500 55,500 37,000 27,000 Net operating income $ 10,000 If the company sells 4,300 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,700 units) Variable expenses Contribution margin Fixed expenses $ 92,500 55,500 37,000 27,000 Net operating income $ 10,000 If the company sells 4,300 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850 and has per-unit variable costs of $400 associated with its production. The company has fixed expenses of $90,000 per month. In August, the company sold 425 of the Model 101 motors. A. Calculate the contribution margin per unit for the Model 101. B. Calculate the contribution margin ratio of the Model 101. C. Prepare a contribution margin income statement for the month of August.
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Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 15%. Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged.
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