Shown here is an income statement in the traditional format fora firm with a sales volume of 7,900 units. Cost formulas also areshown: Revenues $ 34,200 Cost of goods sold ($5,700 + $2.20/unit)23,080 Gross profit $ 11,120 Operating expenses: Selling ($1,180 +$0.09/unit) 1,891 Administration ($3,550 + $0.20/unit) 5,130Operating income $ 4,099 Required:
a. Prepare an income statement in the contribution marginformat.
b. Calculate the contribution margin per unit and thecontribution margin ratio. (Do not round intermediate calculations.Round contribution margin per unit to 2 decimal places.)
c-1. Calculate the firm's operating income (or loss) if thevolume changed from 7,900 units to 11,850 units. (Do not roundintermediate calculations.)
c-2. Calculate the firm's operating income (or loss) if thevolume changed from 7,900 units to 3,950 units. (Do not roundintermediate calculations.) Refer to your answer to part a fortotal revenues of $34,200.
d-1. Calculate the firmâs operating income (or loss) if unitselling price and variable expenses per unit do not change andtotal revenues increase by $11,000. (Round intermediatecalculations to 2 decimal places.)
d-2. Calculate the firm's operating income (or loss) if unitselling price and variable expenses per unit do not change andtotal revenues decrease by $2,500. (Round intermediate calculationsto 2 decimal places.)
Shown here is an income statement in the traditional format fora firm with a sales volume of 7,900 units. Cost formulas also areshown: Revenues $ 34,200 Cost of goods sold ($5,700 + $2.20/unit)23,080 Gross profit $ 11,120 Operating expenses: Selling ($1,180 +$0.09/unit) 1,891 Administration ($3,550 + $0.20/unit) 5,130Operating income $ 4,099 Required:
a. Prepare an income statement in the contribution marginformat.
b. Calculate the contribution margin per unit and thecontribution margin ratio. (Do not round intermediate calculations.Round contribution margin per unit to 2 decimal places.)
c-1. Calculate the firm's operating income (or loss) if thevolume changed from 7,900 units to 11,850 units. (Do not roundintermediate calculations.)
c-2. Calculate the firm's operating income (or loss) if thevolume changed from 7,900 units to 3,950 units. (Do not roundintermediate calculations.) Refer to your answer to part a fortotal revenues of $34,200.
d-1. Calculate the firmâs operating income (or loss) if unitselling price and variable expenses per unit do not change andtotal revenues increase by $11,000. (Round intermediatecalculations to 2 decimal places.)
d-2. Calculate the firm's operating income (or loss) if unitselling price and variable expenses per unit do not change andtotal revenues decrease by $2,500. (Round intermediate calculationsto 2 decimal places.)
Related questions
| Revenues | $ | 34,500 | |
| Cost of goods sold ($5,600 +$2.2/unit) | 22,980 | ||
| Gross profit | $ | 11,520 | |
| Operating expenses: | |||
| Selling ($1,180 +$0.1/unit) | 1,970 | ||
| Administration ($3,550 +$0.2/unit) | 5,130 | ||
| Operating income | $ | 4,420 | |
| | | ||
the optional account names for the three boxes under variableexpense are:
Requirement 1: |
Prepare an income statement in the contributionmargin format. (Omitthe "$" sign in your response.) |
| revenues | $ | |
| Variableexpenses: | ||
| cost of good sold | $ | |
selling expense | ||
| administrative expense | ||
| Totalvariable expenses | ||
| Contribution margin | $ | |
| Fixedexpenses: | ||
| cost of good sold | $ | |
| admistratitve expenses | ||
| selling expenses | ||
| Total fixedexpenses | ||
| operating income | $ | |
| | ||
| Requirement 2: |
Calculate the contribution margin per unit and thecontribution margin ratio. (Omit the "$" and "%" signs in your response. Roundcontribution margin per unit to 2 decimal places and contributionmargin ratio to whole number.) |
| Contribution margin perunit | $ |
| Contribution margin ratio | % |
| Requirement3: | |
| (a) | Calculate the firm's operating income (or loss) ifthe volume changed from 7,900 units to 11,850 units. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Omitthe "$" sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operating income (or loss) ifthe volume changed from 7,900 units to 3,950 units. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputall amount as positive values. Omit the "$" sign in yourresponse.) |
| operating income | $ |
| Requirement4: | |
| Refer to your answer to requirement 1for total revenues of $34,500. | |
| (a) | Calculate the firm%u2019s operating income (or loss)if unit selling price and variable expenses per unit do not change,and total revenues increase by $10,500. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Omitthe "$" sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operating income (or loss) ifunit selling price and variable expenses per unit do not change,and total revenues decrease by $3,000. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputthe amount as positive value. Omit the "$" sign in yourresponse.) |
| operating income | $ |
Shown here is an income statement in thetraditional format for a firm with a sales volume of 7,900 units.Cost formulas also are shown: |
| Revenues | $ | 34,500 | |
| Cost of goods sold ($5,600 + $2.2/unit) | 22,980 | ||
| Gross profit | $ | 11,520 | |
| Operating expenses: | |||
| Selling ($1,180 +$0.1/unit) | 1,970 | ||
| Administration ($3,550 +$0.2/unit) | 5,130 | ||
| Operating income | $ | 4,420 | |
| | | ||
the optional account names for the three boxes under variableexpense are:
Requirement 1: |
Prepare an income statement in the contributionmargin format. (Omit the "$" sign in yourresponse.) |
| revenues | $ | |
| Variable expenses: | ||
| cost of good sold | $ | |
selling expense | ||
| administrative expense | ||
| Total variable expenses | ||
| Contribution margin | $ | |
| Fixed expenses: | ||
| costof good sold | $ | |
| admistratitve expenses | ||
| selling expenses | ||
| Total fixed expenses | ||
| operating income | $ | |
| | ||
| Requirement 2: |
Calculate the contribution margin per unit andthe contribution margin ratio. (Omit the "$" and "%" signs inyour response. Round contribution margin per unit to 2 decimalplaces and contribution margin ratio to whole number.) |
| Contribution margin per unit | $ |
| Contribution margin ratio | % |
| Requirement 3: | |
| (a) | Calculate the firm's operating income (or loss)if the volume changed from 7,900 units to 11,850 units.(Do not round yourintermediate calculations. Round your answer to the nearest dollaramount. Omit the "$" sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operating income (or loss)if the volume changed from 7,900 units to 3,950 units. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputall amount as positive values. Omit the "$" sign in yourresponse.) |
| operating income | $ |
| Requirement 4: | |
| Refer to your answer to requirement 1 for total revenues of$34,500. | |
| (a) | Calculate the firm%u2019s operating income (orloss) if unit selling price and variable expenses per unit do notchange, and total revenues increase by $10,500. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Omitthe "$" sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operating income (or loss)if unit selling price and variable expenses per unit do not change,and total revenues decrease by $3,000. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputthe amount as positive value. Omit the "$" sign in yourresponse.) |
| operating income | $ |
