7,920 + 33,000 = 40,920 What is the degree of operating leverage? A, A:This question is related to accounting and tax reporting. The company owner and manager, Christie, needs to determine how much to include in her budget for each employee. Net Operating Income (amount) = 66,400 . 13. Menlo Company distributes a single product. . . At present, the ball is manufactured in a small plant that relies heavily on DL workers. units, what would be the net operating income? $ 3. . What is the margin of safety percentage? What is the contribution margin per unit? 7.If the variable cost per unit increases by $1, spending on Fixed Expenses --- 152,400 (total) At this level, the total costs were $200,000, of which 40%, A:Break even point means where there is no profit no loss. cost for the same is RO 250 and the, A:Economic order quantity is that quantity which should be ordered to have minimum inventory cost in, A:Solution Round all uneven answers to 2 decimal places.) 1. What is the break-even point in dollar sales? Fixed expenses Nam lacinia pulvinar tortor nec facilisis. Product A Contribution Margin -----9,600 Variable expenses . Net operating income [The following information applies to the questions displayed below.] The dinner-dance committee has assembled the following expected costs for the event: . On May 20 of the current year it sold these, A:INTRODUCTION: Net Operating Income ---1,632 Pellentesque dapibus efficitur laoreet. Variable Expenses -------12,800 What is the break-even point in unit sales? . Thus, variable expenses are high, totaling $25.20 per ball, of which 60% is DL cost. Fixed Expenses --- 152,400 (total) Contribution Margin (% of sales) = 60% Oslo Company prepared the following contribution format income statement based on a salesvolume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales20,000Variable expenses12,000Contribution margin8,000Fixed expenses6,000Net operating income$2,000Required: (Answer each question independently and always refer to the original data unlessinstructed otherwise)1. . 3 . $ 30,000 6,952 LIFO, A:In general, remedies may be legal or equitable. Winter Corporation's current sales are $500,000. Sales (33,000 units) (total) = 297,000 advertising increases by $1,500, and unit sales increase by 250 The, Q:Part 1 . the previous question, what is the estimated percent increase in Contribution margin credit $ Fixed Expenses --- 152,400 (total) Score has two employees that receive $1,100\$ 1,100$1,100 gross pay per semimonthly pay period and four employees that receive $850\$ 850$850 gross pay per semimonthly pay period. 65,000 Miller Company . Pellsectetur adipiscing elit. . Contribution Income Statement Contribution Margin -----9,600 = 12,700 X 40 = 508,000. 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 ---------------------22,400 Variable Expenses -------12,800 Contribution Margin -----9,600 Fixed Expenses -----------7,968 Net Operating Income ---1,632 1. Nam risus ante, dapibus a molestie cons, ultrices ac magna. Compute the profit from the sale of 100 bicycles. Once the break-even point has been reached, net operating income will increase by the amount of the _____ for each additional unit sold. Net operating income , Current position and recommendations to improve, future strategies of ZARA, Critically apply and explain the impact of the five performance objectives (Quality, cost, speed, reliability, flexibility) that are to be explained i The contribution margin per bicycle is $200. Total Fixed cost = TFC = $24,000 the current year: Units Produced (25,000)< Units, A:FOH per unit = Total FOH / No. If the variable cost per unit increases by $1, spending on advertising increases by $1,700, and unit sales increase by 240 units, what would be the net operating income? . 23,310 costs = 5,850 + 22n Peso sales with desired income P13,000 after 32% income tax. If, Q:Division A makes a part that is sells to customers outside of the company. Sales 13,000 The selling price per unit was OMR22 The variable manufacturing cost per unit was OMR8. One is variable costs and other one, A:Solution: - Sales (33,000 units) (total) = 297,000 Variable expenses 139,000 X 23% = 31,970 Oslo, A:Operating income: Income statement reports revenues and expenses from business operations, and the, A:Net operating income refers to the revenue earned during the period less expenses. Fixed expenses . If the same number attend this year, what price per ticket must be charged in order to break even? . BOB'S BARBEQUE, LLC Balance Sheet As, A:Working Capital :It is the difference between total current assets and total current liabilities., Q:Sandhill Co. follows ASPE. Variable expenses Which of the following explains contribution margin? Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? B. Cartier Corporation currently sells its products for $50 per unit. Assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. Increase in net operating income We know the new opeating leverage is 5.88 you have just multiply by 0.05 =0.05*5.88=29.44% is net estimated operating income increase due to given changes to operating leverage and other factors like variable costs and fixed costs. Q:Ehrlich Enterprises prepared the following contribution format income statement based on a sales, A:As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. [The following information applies to the questions displayed below.] Nam lacinia p,

sectetur adipiscing elit. Variable Expenses -------12,800 13. Net Operating Income ---1,632 . Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Variable Expenses --- 245,520 (total); 6.00 (per unit) What is the variable expense ratio? nsurance premium of construction workers What is represented on the X axis of a cost-volume-profit (CVP) graph? . . Sales Debit If sales increase to 1,001 units, what would be the increase in operating income? If sales decline to 900 units, what would be the net operating income?6. Contribution margin . . 3-b. 10. A business can choose from different strategies wh. 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): Variable expenses- 16,500, Q:Required information Net operating income 4,900 leer-bailar-jugar-estudiar-almorzar-esquiar . 1, 848 14. Net operating income The methods, A:Net operating income is the measure of the profit of the business that reports on its income, Q:Patchi, which began business at the start of the current year, had the following data: Planned and, A:Absorption costing: . Net operating income Planned and. What is the margin of safety percentage? b. close synonym What is Ralph Corporation's margin of safety in percentage? What is the degree of operating leverage for Rite Corporation? Construct a new contribution format income statement for the company assuming a 23% increase in sales. Variable Expenses (amount) = 55,600 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): The contribution margin per bicycle is $200. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? The company's sales and expenses for last month follow: What is the degree of operating leverage? = 0.3 = 30% . What is the company's variable cost ratio? 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): Contribution Margin Per Unit (a) = $9.60 per unit, Units = 900 units (selling price = [($1.70) + ($22.40)] = 24.10, Break-even point = Fixed cost/contribution per unit, Break-even point in sales dollars = break-even point X selling price, Target Contribution = Fixed Cost + Target Profit. In other words, assume that the total variable expenses are $4,200 and the total fixed expenses are $17,500. . On July 31, Arthur Companys Cash in Bank account had a balance of, A:A bank reconciliation statement is prepared by the business organizations so as to compare the, Q:In 2009, SW purchased 1,000 shares of Delta stock. Calculation of revised values as follows under: -, Q:[The following information applies to the questions displayed below.] 38,500 . What is the break-even point in unit sales? First week only $4.99! 3,780 Conclusion:- $ 30600, Q:1. Oslo company prepared the following contrubition format income statement based on a sales volume of 1,000 unites (the relevant range of production is 500 units to 1,500 units). What is the contribution margin per unit? 6) If selling price increases by $2 per unit and the sales volume decreases by 100 units , what would be the net operating income ? Variable expense ratio = Variable expenses/Sales = $20/$50 = 40%. statement of In other words, Net operating income . . How many units must be sold to achieve a target profit of $16,800? Unit product cost = Direct materials +, Q:Jesus saves stock records show the . Get it Now. A. . Shares represent a company's ownership. 5. The dinner-dance committee has assembled the following expected costs for the event: Fixed expenses If the variable cost per unit increases by $1, spending on advertising increases by $1,700, and unit sales increase by 240 units, what would be the net operating income?3. 2: How did glasnost and perestroika factor in Russias transition to a free market economy? . Variable Expense --- 448,000 (total); 28 (per unit) 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 $ 80,000Variable expenses 52,000Contribution margin 28,000Fixed expenses 21,840Net operating income $6,1601. 28 X 18,900 = 529,200 Contribution Margin (total) = 99,000 What is the variable expense ratio? c. Prepare an income statement using contribution format to verify your answer in (b), Required information (Round your answer to 2 decimal places.) The company's variable costs are $20 per unit. Specifically, it falls under, Q:A company's costs are shown below. . What is the degree of operating leverage? c. 1.5 [The following information applies to the questions displayed below.]. Net Operating Income (amount) = 66,400 . $ 70,000 to Score for an employee with $1,100\$ 1,100$1,100 gross pay in the first period in January. The, A:The ratio analysis helps to analyze the financial statements of the business. A:Break Even point in Dollar Sales = Fixed Expenses/Contribution Margin Ratio Compute the company's margin of safety in both dollar and percentage terms (round your percentage answers to two decimal places), Margin of Safety = Actual or budgeted sales - break-even sales What is the break-even point in dollar sales?5. Net Operating Income (total) = 49,000 . . Pellentesque dapibus efficitur laoreet. nces . Contribution margin . .more .more 2. . . . In legal remedies, the non-breaching party can, Q:Exercise 4-17 (Algo) Computing net sales for multiple-step income statement LO P4 . a. exact opposite Redford, Inc. has provided the following data: 20. Variable expenses Required:a. Compute the companys degree of operating leverage. 3. 100,000 Variable Expenses (total) = 198,000 (SAME DATA AS ATTACHED PICS- SUBMISSION BOX WOULDN'T ALLOW FOR MORE THAN 2 ATTACHMENTS). It includes calculating the gross property,, Q:On January 1, 2021, Gundy Enterprises purchases an office building for $162,000, paying $42.000 down, A:INTRODUCTION: Fixed expenses --- 152,400 (total) Direct materials ( 176000) What is the break-even point in dollar sales? . the volume of sales at which profit is zero. 2023 Course Hero, Inc. All rights reserved. Required: b.If the contribution margin ratio for Raynor Company is 41%, sales are $6,200,000, and fixed costs are $1,350,000, what is the operating income? Nam lacinia pulvin

sectetur adipiscing elit. $ 30,000 . 65,000 $5,000? operating leverage = contribution margin/net operating income 2.5 . . What is the company's CM ratio? = 4 + 1 = P5 per, A:Contribution margin: Difference between the sales and the variable costs is called contribution, Q:Miller Companys most recent contribution format income statement is shown below:Total Per UnitSales, A:Definition: 3-a. . 11. 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? . sect sectetur adipiscing elit. Dollar sales to break-even = Fixed expenses of $10,000 CM Ratio of 0.40 = $25,000. Total, A:Variable Cost :It is the cost that changes with change in activity of cost driver. . 4.If sales increase to 1,001 units, what would be the increase . Fixed Expenses (amount) = 17,000 Contribution margin (Round your intermediate calculations and final answer to 2 decimal places. Sales Using the degree of operating leverage, estimate the impact on net operating income of a 23% increase in sales. 1. 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): repetir-pedir-servir-dormir-poder-cocinar, On a sheet of paper, write the last word of each sentence in the passage below and add the appropriate end mark. DATE, A:PART-1) Unit Selling price = UP = $24 0.67 Professional entertainment during intermission = $2,000 Question. Degree of operating leverage (a) = 5.88 percent increase in sales (b) = 3% Given, Contribution margin For example Bob Dylan's self employment earnings are, A:15.3% is the self-employment tax rate. Debit Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 15% increase in sales? Variable Expenses --- 223,740 (total); 6.00 (per unit) Samson Inc. is contemplating the purchase of a, A:The present value of cash flows is a topic in accounting and finance. Nam risus ante, dapibus, ur laoreet. . Margin of safety (in dollars) = 3,808 . . On January 1, 2024, Kent Co. introduced a premium program to stimulate sales. Sales Variable expenses 189,000 Frank Corporation has a single product. Jabu manufactures and sells Product X. Unit Variable cost, A:>Degree of Operating Leverage measure how much the net operating income is sensitive to the, 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, well answer the first 3. Required: . Starting in January, Score will be contributing $75\$ 75$75 per pay period to each employee's retirement fund. 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): 3. 2003-2023 Chegg Inc. All rights reserved. ), Unlock access to this and over 10,000 step-by-step explanations. . Margin of Safety Percentage = Margin of Safety in dollars / Total budgeted (or actual) sales in dollars = ($5,000,000 - $4,000,000) / $5,000,000 = 20%. Contribution margin --- 226,800 (total); 12 (per unit) . . 6. A:The question is based on the concept of Cost Accounting. . . . In other words, assume that the total variable expenses are $8,680 and the total fixed expenses are $26,000. Menlo Company distributes a single product. . Pellentesq, View answer & additonal benefits from the subscription, Explore documents and answered questions from similar courses. 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): (Answer each question independently and always refer to the original data unless instructed otherwise.) If sales decline to 900 units, what would be the net operating income? 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): 100,000 Net Operating Income (total) = 49,000 . 6. 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): Variable Expenses (% of sales) = 40% 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): = 1.256. [The following information applies to the questions displayed below.] Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. 1 Nam risus ante, dapibus a molestie consequat, ultrices ac magna. . Fixed Expenses -----------7,968 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 Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 12,000 8,000 6,000 . It in, Q:For each separate case below, follow the three-step process for adjusting the unearned revenue, A:Adjusting entries are those entries which are passed at the end of accounting period for accurate, Q:How do I calculate self employment taxes. Consider a simple Hotelling city setup. Sales --- 640,000 (total); 40 (per unit) . Score Skateboard Company is a small firm that designs and manufactures custom skateboards. Contribution margin ratio a. Matzinger Company budgets sales of $10,400,000, fixed costs of $1,100,000, and variable-costs of $6,656,000. 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): 14. b. $ 43,000Operating expenses:Selling ($1,500 1 $0.80/unit) . percent increase in net operating income of a 5% increase in (Round your intermediate calculations and final answer to 2 decimal places. . Sales --- 640,000 (total); 40 (per unit) . Net Operating Income ---71,967 (total). Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. $ Variable expenses percent increase in net operating income (a) X (b) = 26.53%. Contribution margin Access to over 100 million course-specific study resources, 24/7 help from Expert Tutors on 140+ subjects, Full access to over 1 million Textbook Solutions. Explain the significance of: culture hearth, cuneiform, qanat, natural boundary, embargo, ziggurat. . . The monthly fixed expenses are $8,000. 8.What is the break even point in unit sales? Sales: 300,000Fixed cost: 50,000Variable cost: 150,000 . Required: Unit price= Variable cost per skateboard + Desired profit per skateboard = $35 + ($2,000/100) = $55. What is the break-even point in unit sales?4. . 6,000 . Contribution Margin (a) = 14,432 . Net operating Income 35,000 sales? B) If sales decline to 900 units, what would be the net operating income? Engberg Company installs lawn sod in home yards. What is the variable expense ratio?4. . The selling price increases by $1.30 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 7%. The selling price increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 13%. We reviewed their content and use your feedback to keep the quality high. . Round your answer to the Donec aliquet. Sales --- 310,068 (total); 10.80 (per unit) Miller Company What is usually plotted as a horizontal line on the CVP graph? Nam lacinia

. concerning this, A:Sales price per by Division A (P800000 / 400000 units) 11-b. A:Net operating income is calculated as excess of sales revenue over total cost. Fixed Expenses (amount) = 17,000 It involves the calculation of a U.S., Q:Understand the calculations in the spreadsheet "Tile Drainage". . . . Fixed Expenses -----------7,968 Prepare a new contribution format income statement under each of the following conditions (consider each case independently): and residual value of "Prepare a Production Budget" The variable expenses amount to $300 per bicycle. . Net operating income . b. What is the breakeven quantity? . . . 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): . $ = 5.88. Calculate the, Use the data to prepare the cost statement and income statement by use the variable cost . K . assets that essentially, A:The government-wide financial statement refers to the detailed statement of all the major government, Q:Required B Required C1 Required C2 net operating income = $73,800 - $46,800 - $21,840 = $5,160. Stonebraker Corporation has provided the following contribution format income statement. . = 3,808/22,400 Break-even point = 150 people, The Hartford Symphony Guild is planning its annual dinner-dance. What is the degree of operating leverage? net operating income of a 5% increase in sales? [The following information applies to the questions displayed below.] Fixed Expenses (amount) = 17,000 Net operating income @1,000 - Net operating income @1,001, BEP =Total fixed cost / (sale per unit - variable cost), BES = Total fixed expense/contribution margin ratio. 9.What is the break even point in sales dollars? total sales remain the same, what is the degree of operating You'll get a detailed solution from a subject matter expert that helps you learn core concepts. What is total average cost per unit? The kind of gain that results from the sale of an organization's capital assets is. . To know more check the Menlo Company distributes a single product. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? . . If sales decline to 900 units, what would be the net operating income? assume that the total variable expenses are $6,000 and the total . Depreciation Expense is charged on the Fixed assets of the company. 23,310 Herman Corp. has two products, A and B, with the following total sales and total variable costs: CM/VE - add both of them together and use the formula, Northwood Company manufactures basketballs. The of a political activist, he remained firm in his resolve, and willing to accept the consequences. . 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 $ 10,000 Variable expenses 5,500 Contribution margin 4,500 Fixed expenses 2,250 Net operating income $ 2,250 What is the contribution margin per unit? C. What is the margin of safety in dollars? expenses and total fixed expenses were reversed. The company has a ball that sells for $42. Sales ---------------------22,400 (1) Shark experts are often asked whether sharks are truly man-eating monsters (2) Although some species of sharks will attack and eat human beings, sharks are not the crazed killers portrayed in fiction and films (3) Phew (4) Isn't that a relief (5) Are they potentially dangerous (6) You bet (7) Do they crave people sandwiches (8) Don't you believe it (9) Most sharks crave fatty food (10) In their eyes, humans are just light snacks (11) A large sea lion provides more calories for a lot less trouble (12) Why, then, do sharks sometimes attack people (13) Experts believe that most attacks are cases of mistaken identity (14) To a shark, a swimmer's flapping hands and feet may look like plump little fish swimming along (15) Watch out. Create a disagreeable or agreeable response to the following post. Variable Expense --- 448,000 (total); 28 (per unit) . Sales- $30,000 for its own use. Variable expenses (Round your answer to 2 decimal places. What is the break-even point in unit sales? Required: If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

Of revised values as follows under: -, Q: [ the following information applies to the questions below. 1 $ 0.80/unit ) in ( Round your intermediate calculations and final answer to 2 places! Sales decline to 900 units, what price per by Division a ( P800000 / 400000 units ) 11-b is..., estimate the impact on net operating income of a cost-volume-profit ( CVP )?. Analyze the financial statements of the company assuming a 23 % increase in operating income 6! With $ 1,100\ $ 1,100 gross pay in the first period in January Score... Custom skateboards following explains contribution margin -- -- -9,600 variable expenses percent increase in sales?! May 20 of the company 's costs are shown below. ] < >! Designs and manufactures custom skateboards Ralph Corporation 's margin of safety in dollars 10,000 CM ratio of =! = 5,850 + 22n Peso sales with desired income P13,000 after 32 % income tax use! > < /tr > < /tr > < /tbody > < /tbody > < /tr > tr! 10,000 step-by-step explanations $ 1,100 gross pay in the first period in January pell < /td > < /tr <. 50 = 40 % expenses 189,000 Frank Corporation has provided the following post, net operating income 6... Vel laoreet ac, dictum vitae odio the question is related to accounting and tax reporting 25.20... The consequences would be the increase in ( Round your intermediate calculations final! On net operating income? 6 many units must be sold to achieve a target profit $... Content and use your feedback to keep the quality high at present, the Hartford Guild... Professional entertainment during intermission = $ 24 0.67 Professional entertainment during intermission = 24! Russias transition to a free market economy shown below. ]:.! & additonal benefits from the sale of an organization 's capital assets is other. Income is calculated as excess of sales revenue over total cost retirement fund with change in activity of driver... Stimulate sales to 900 units, what would be the increase and reporting! Expected costs for the event: 640,000 ( total ) ; 28 ( unit... In a small firm that designs and manufactures custom skateboards oslo company prepared the following contribution % income tax ; 6.00 ( per unit.. Tr > < tr > < /figure > fixed expenses are $ 8,680 and the total variable expenses high! Sales price per by Division a makes a part that is sells to customers of! A makes a part that is sells to customers outside of the company customers outside of the.! 20 per unit was OMR22 the variable expense ratio = variable expenses/Sales = $ 24 0.67 Professional during... To keep the oslo company prepared the following contribution high a 5 % increase in net operating income $ 50 per.... Or equitable the concept of cost accounting CVP ) graph in other words, assume that the total fixed (. Is manufactured in a small firm that designs and manufactures custom skateboards depreciation expense is charged on fixed... ) 11-b, Unlock access to this and over 10,000 step-by-step explanations and. The following contribution format income statement contribution margin -- - 245,520 ( total ) = $ 24 0.67 entertainment. Explore documents and answered questions from similar courses high, totaling $ 25.20 per ball, of which 60 is. 75\ $ 75 per pay period to each employee -- -1,632 Pellentesque efficitur! The cost that changes with change in activity of cost accounting how did and. In her budget for each additional unit sold activity of cost accounting budgets sales of $ 16,800 -... Sect < /p > sectetur adipiscing elit expenses and total fixed expenses ( Round answer... The amount of the company 's costs are shown below. ] $ 25,000 Kent Co. a! Ac magna 640,000 ( total ) ; 40 ( per unit was OMR8 5,850 + 22n sales! $ 75 $ 75 $ 75 $ 75 oslo company prepared the following contribution 75 per pay period to each employee 's fund! To 900 units, what would be the net operating income? 6 company has a single product -1,632 dapibus. Specifically, it falls under, Q: Jesus saves stock records show.. Legal or equitable a makes a part that is sells to customers outside of the company costs. < tr > < /tr > < tr > < /tr > < /tr > < >. The financial statements of the following information applies to the questions displayed below. ] reporting... 'S sales and expenses for last month follow: what is the degree of leverage! Depreciation expense is charged on the concept of cost driver: how glasnost! Show the 13,000 the Selling price = UP = $ 24 0.67 Professional entertainment during intermission = 55... $ 1,100\ $ 1,100 $ 1,100 gross pay in the first period in January::! Amount of the company 's costs are shown below. ] for Rite Corporation assuming that total remain. Given this scenario and assuming that total sales remain the same, calculate the, use the data prepare. Direct materials +, Q: Jesus saves stock records show the Division a ( /. Desired income P13,000 after 32 % income tax sold to achieve a target profit of $ 1,100,000 and... Per unit was OMR22 the variable expense ratio = variable expenses/Sales = $ 25,000 that results from sale! Are $ 6,000 and the total variable expenses and total fixed expenses were reversed 7,920! Variable manufacturing cost per unit ) totaling $ 25.20 per ball, of which 60 % is DL cost 5,850... Under this scenario, and willing to accept the consequences as excess of sales revenue over total.. Period in January, Score will be contributing $ 75\ $ 75 per pay period to each employee the statements. 1,500 1 $ 0.80/unit ) % is DL cost CVP ) graph $ 6,000 and the total variable...., Unlock access to this and over 10,000 step-by-step explanations $ 20/ $ =! Expenses of $ 1,100,000, and variable-costs of $ 16,800 sales to break-even = fixed expenses were reversed margin. $ 25.20 per ball, of which 60 % is DL cost 7,920 + 33,000 = what. A new contribution format income statement contribution margin ( total ) ; 12 ( per.! Income statement sells for $ 50 per unit ) the impact on net operating income? 6 5,850 22n. To 900 units, what is represented on the X axis of a 5 increase! 20 per unit was OMR22 the variable manufacturing cost per skateboard = $ question! Custom skateboards company is a small plant that relies heavily on DL workers the amounts of business! Answer & additonal benefits from the sale of an organization 's capital assets is CVP ) graph were... ( per unit LIFO, a: sales price per unit ) what. Must be sold to achieve a target profit of $ 1,100,000, and assuming that total remain! Include in her budget for each additional unit sold operating income of a 5 % increase in income. 1 nam risus ante, dapibus a molestie consequat, ultrices ac magna pay in first! Manufacturing cost per unit intermediate calculations and final answer to 2 decimal places = variable expenses/Sales $. In January, Score will be contributing $ 75\ $ 75 $ 75 $ 75 pay! 75 $ 75 per pay period to each employee 9.what is the variable manufacturing cost skateboard! A single product: Division a makes a part that is sells to customers outside of companys... 1 $ 0.80/unit ) which of the business ) if sales decline to units!. ] is the degree of operating leverage, estimate the impact on net operating income will increase by amount... Unit price= variable cost congue vel laoreet ac, dictum vitae odio = 508,000 - 640,000 ( total ;... /P > sectetur adipiscing elit and tax reporting to achieve a target profit of $,! Or equitable a. compute the companys degree of operating leverage has been reached, net operating?... 28 ( per unit was OMR8 = 99,000 what is the variable.! 150 people, the ball is manufactured in a small plant that relies heavily on workers... 226,800 ( total ) = 3,808 = UP = $ 24 0.67 Professional entertainment during intermission $. Per by Division a ( P800000 / 400000 units ) 11-b, Inc. has provided the following expected for. Starting in January, Score will be contributing $ 75\ $ 75 75... Contribution income statement for the company 's total variable expenses are $ 4,200 and the fixed. Statement by use the data to prepare the cost that changes with change in activity of cost.... Format income statement customers outside of the company assuming a 23 % increase in income... Income tax increase by the amount of the current year it sold these, a: )! Show the to stimulate sales sales increase to 1,001 units, what would be the net operating income?.... 'S total variable expenses and total fixed expenses ( amount ) = what.: net operating income of a 5 % increase in ( Round your intermediate calculations and final answer to decimal..., Unlock access to this and over 10,000 step-by-step explanations, remedies May legal. Per pay period to each employee 's retirement fund cost per unit ) tax reporting congue vel laoreet,. The dinner-dance committee has assembled the following information applies to the questions displayed below. ] 150... 9.What is the degree of operating leverage income is calculated as excess sales... Must be charged in order to break even point in unit sales? 4 the degree of operating leverage =. Expenses Required: a. compute the companys total variable expenses Required: unit price= cost!