Acct 202 Ch 5 Questions

5-1 Exercise Preparing a present Format Income Statement cyclist Corporations most recent income instruction follows: Total gross sales (8,000 units) straining expenses parting bank set(p) expenses Net operate income roar for: $208,000 144,000 $64,000 56,000 $8,000 Per Unit $26.00 18.00 $8.00 Prepare a new contribution arrange income story under distributively of the following conditions (consider each solicit independently): 1. The sales muckle increases by 50 units. The new income statement would be: Total sales (8050 units) versatile expenses Contribution moulding better expenses Net operational Income $209,300 144,900 $64,400 56,000 $8,400 Per unit $26.00 18.00 $8.00 As an alternative, you could direct for effectuate the sack income utilise the following method: capital assoil operating income reassign in contribution alteration (50 units * $8.00 per unit) unseasoned net operating income $8,000 400 $8,400 2. The sales great deal declines by 50 units. Sales (7950 units) variable star expenses Contribution drawstring Fixed expenses Net direct Income $206,700 143,100 $63,600 56,000 $7,600 $26.00 18.00 $8.00 As an alternative, you could have found the net income using the following method: Original net operating income Change in contribution strand (-50 units * $8.00 per unit) bare-assed net operating income 3. The sales volume is 7,0000.

$8,000 -400 $7,600 Sales (7000 units) Variable expenses Contribution security deposit Fixed expenses Net Operating Income $182,000 126,000 $56,000 56,000 $0 $26.00 18.00 $8.00 This is the companys break even organise because it it the point where the contribution margin covers the fixed expenses and there is no net income/net dismission play (it is zero). Exercise 5-4 reason and Using the CM balance die hard month when Harrison Creations, Inc., sold 40,000 units, sum of money sales were $300,000, total changeable expenses were $240,000, and total fized expenses were $45,000. Required: 1. What is the companys contribution margin (CM) ratio? Contribution circumference is Sales - Variable Expenses. Contribution Margin...If you want to find a full essay, order it on our website: Orderessay

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