Week 2 assignment - Borislav Kovacev Week 2 E5-1 1 Sales(10,00)=.353,500 Variable Production Expense=202,000 Contribution Margin=.151,500 Fixed

Week 2 assignment - Borislav Kovacev Week 2 E5-1 1...

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Borislav Kovacev 9/13/2015 Week 2 E5-1 1. Sales(10,00)=………………..353,500 Variable Production Expense=202,000 Contribution Margin=……….151,500 Fixed Expenses=……………..135,000 Net Operating Income=……..16,500 2. Sales(9,900)= ……………….346,500 Variable Product Expense= …198,000 Contribution Margin= ………148,500 Fixed Expenses=……………..135,000 Net Operating Income=……..13,500 3. Sales(9,000) =……………….315,000 Variable Production Expense=180,000 Contribution Margin=……….135,000 Fixed Expense=………………135,000 Net Operating Income=……...0
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E5-4 1. 200,000-120,000=(Contribution Margin) 80,000-65,000=15,000 80,000/200,000= 40% Change in total Sales = 1000 X CM ratio = 40% Estimated Change in net operating income 400 E5-8 1. Margin of Safety Sales= ……..…30/Units Variable Expenses=………………...20/Units Contribution Margin Ratio=…..……$10 per unit Contribution Sales Ration- ………..10/30=33% Fixed Expense=…………………….7,500/(CM Ratio).33= 22,727.27 1. Margin of Safety-…..…………..$ 7,500 $0 = [($30 − $20) × Q] − $7,500
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  • Fall '15
  • Ratio, $10, $20, 25%, $0, $30

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