Your Corporation’s contribution margin ratio is 29% and it’s fixed monthly expenses are $17,000. If the company’s sales for a month are $98,000, what is the best estimate of the company’s net operating income?
Q: porated's contribution margin ratio is 61% and its fixed monthly expenses are $45,500. Assuming that…
A: Net operating income refers to the concept of evaluating the expected sum of money arising out of an…
Q: Gayne Corporation's contribution margin ratio is 12% and its fixed monthly expenses are $84,000. If…
A: Net operating Income= (Sales- Variable cost)-Fixed expenses = Contribution- Fixed expenses…
Q: If each sales rep earns a salary of €60,000 per year, whatsales are necessary to break even on the…
A: Break-Even Point: It refers to a point of production at which there is no profit no loss.
Q: A company has fixed costs of $270,000, a contribution margin per unit is $14, and contribution…
A: Target contribution margin = Target income + Fixed cost = $60,000 + $270,000 = $330,000
Q: A company has fixed costs of 100,000 and break-even sales of 800,000. What is its projected profit…
A: Business has $0 profit at the break-even sales. At break even sales of $800,000 Sales = $800,000…
Q: Your corporation sells a product for $10 per unit. The variable expenses are $6 per unit, and the…
A: Break-even analysis is a technique used widely by the production management. It helps to determine…
Q: Frontier Corp. has a contribution margin of $1,458,000 and profit of $364,500. If sales increase…
A: Definition: Gross Profit: Gross Profit is the difference between the net sales and the cost of…
Q: Neeley Grocery has a monthly target operating income of $25,000. Variabe expenses are 20% of sales…
A: Compute the Neeley Grocery's operating leverage factor at the target level of operating income:…
Q: Creswell Corporation's fixed monthly expenses are $25,500 and its contribution margin ratio is 68%.…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: Dave’s has total fixed costs of $45,000. If the company’s contribution margin is 50%, the income tax…
A: Units need to sell to produce to desired profit = (Fixed costs + Desired profit) / Contribution…
Q: Your Company's single product has a selling price of $15 per unit. Last year the company variable…
A: Given information, Selling price=$15 per unit Variable cost= $9 per unit Fixed expenses =$90,000 Net…
Q: Your Corporation produces and sells a single product. The selling price is $140 per unit. The…
A: The excess of the selling price over the variable cost is termed as contribution margin which shows…
Q: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…
A: Units = 30,000 Selling price = P Sales = 30000*P = 30000P Variable cost = P 25 Variable cost =…
Q: Your Corporation's fixed monthly expenses are $18,500 and its contribution margin ratio is 62%.…
A: Contribution margin is calculated as excess of sales price over variable expenses. Net income is…
Q: A firm has revenues of $150,000, a contribution margin ratio of 35%, and fixed expenses that total…
A: So answer is operating income increase by $10500 Fixed expenses do not change in change in revenue.…
Q: Jilk Inc's contribution margin ratio is 619% and its fixed monthly expenses are $47,500. Assuming…
A: Formula : Net operating income = Contribution margin - Fixed expenses Deduction of fixed expenses…
Q: Liman Corporation has a single product whose selling price is $140 and whose variable expense is $60…
A: The target profit refers to the expected amount of profit that the entity wants to achieve. The…
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: Contribution margin (CM) ratio = Contribution margin / Sales where, Contribution margin = Sales -…
Q: Last month Forbes Company had a $35,119 profit on sales of $145,998. Fixed costs are $77,167 a…
A: Contribution Margin Ratio = 77%
Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…
A: Given that, total fixed costs of $25,000 company’s contribution margin is 60% the income tax rate…
Q: Creswell Corporation's fixed monthly expenses are $29,000 and its contribution margin ratio is 56%.…
A: Formula: Net operating income = Contribution margin - Fixed expenses
Q: Assuming that the company has a current sales of $120,000 with a 25% margin of safety. Its…
A: Break even sales = Fixed cost/contribution ratio
Q: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Last year, a company reported sales of $715.5k, a contribution margin ratio of 39.25% and a net loss…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: Jalal Corporation contribution margin ratio is 24% and its fixed monthly expenses are Rs. 64,000. If…
A: Formula: Contribution margin = Sales - Variable expenses Deduction of variable expenses from sales…
Q: Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenue…
A: The Break-even point is the point where the company earns no profit and incurs no loss in the…
Q: Last year, the contribution margin ratio of Lamesa company was 30%. this year, fixed costs are…
A: Contribution margin is the amount of revenue remaining after covering variable cost.
Q: Binford Corporation's contribution margin ratio is 58%, and its fixed monthly expenses are $94,000.…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Farhan Corporation fixed monthly fixed expenses are Rs. 370,000 and its contribution margin ratio is…
A:
Q: A company sold 105,000 units of product last year. The contribution margin per unit was ₱6, and…
A: Last year Sold units 105,000 Contribution per unit 6.00…
Q: A company sells a single product with a selling price of $120 and variable costs per unit of $90.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: What is the break-even point for room service operations in terms of total room service revenue?…
A: Break even point in Revenue = Fixed cost / contribution margin ratio
Q: Salt Corporation's contribution margin ratio is 75% and its fixed monthly expenses are $55,000.…
A: Formula: Net operating income = Contribution margin value - Fixed expenses. Deduction of fixed…
Q: Last year, Bread City had sales of 70,000 loaves resulting in revenues of $350,000. Variable costs…
A: Solution:- Profit means the surplus of revenue over the incurred costs.
Q: Discuss the materiality concept. Is the dollar amount that is material the same for a company that…
A: Materiality concept: The accounting concept which focusses that all the financial items and figures…
Q: Irfan Corporation contribution margin ratio is 22% and its fixed monthly expenses are Rs. 54,000. If…
A: Contribution margin = Sales x Contribution margin ratio = Rs. 425,000 x 22% = Rs. 93,500
Q: A company has a break-even point in revenue at ₱800,00. Variable expenses are 60% of the revenue. If…
A: The cost volume profit analysis or CVP analysis is used for the purpose of determining the effect on…
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: The calculation of contribution margin has been made as follows: Contribution margin=Sales-Variable…
Q: Milotic Corporation sells a single product for ₱25 per unit. Last year, the company's sales revenue…
A: Break even point means a point where firm is neither earning profit nor incurring any loss.…
Q: Your company’s single product has a selling price of $15 per unit. Last year the company variable…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
Q: Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%.…
A: Formula used: Total Contribution margin value = Sales value x Contribution margin ratio.
Q: Nothern Company manufactures and sells a single product that it sells for $90 per unit and has a…
A: 1.Answer to the above question is 2,600 units if $ 46,800 is monthly fixed cost. 2. If $ 46,800 is…
Q: Boise Corp had a margin of safety of $375,000 last month, with sales revenue of $1,020,000 and fixed…
A: Solution a: Breakeven sales = current sales - Margin of safety sales = $1,020,000 - $375,000 =…
Q: If selling price per unit is $30, variable costs per unit are $20, total fixed costs are $10,000,…
A: Net income - It is also known as net profit, it is the amount that is left after deducting all the…
Q: A product sells for ₱100 per unit and has a contribution margin of ₱45 per unit. Monthly fixed…
A: Selling price = ₱100 Contribution margin = ₱45 Fixed cost = ₱350000 Annual interest = 250000 * 11% =…
Q: Last month when Simple Creations, Inc., sold 50,000 units, total sales were P200,000, total variable…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
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- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month of June. Marcus expects sales volume to increase by 10% in July. What are the degree of operating leverage and the expected percent change in income for Macom Manufacturing? 0.4 and 10% 2.5 and 10% 2.5 and 25% 5.0 and 50%
- During the current year. Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. What is the sales margin?During the current year, Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7
- Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.Jilk Incorporated's contribution margin ratio is 61% and its fixed monthly expenses are $45,500. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $133,000?
