ACC 216 ch 6

# ACC 216 ch 6 - Data Concerning that product appear below...

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Michael Cavalli Acc 216 Thompson-Abbot ACC 216 Quiz “Chapter #6 Cost-Volume-Profit Relationships” 1. ABC Company produces and sells a single product. In April, the company sold 2,100 units. Its total sales were \$205,800, its total variable expenses were \$107,100, and its fixed expenses were \$82,400. Construct a contribution format income statement for April. Total Per Unit Sales (2100 units) \$205,800 \$98 Variable Expense \$107,100 \$51 Contribution Margin \$98,700 \$47 Fixed Expenses \$82,400 Net Operating Income \$16,300 2. XYZ inc. expects its sales in September to be \$143,000. The company’s contribution margin ratio is 65% and its fixed monthly expenses are \$62,000. Estimate the company’s net operating income for September. Assume the fixed monthly expenses do not change. .65 * \$143,000 - \$62,000= \$30,950 3. Westbrook Corporation produces and sells a single product.

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Unformatted text preview: Data Concerning that product appear below: • Selling price per unit \$230.00 • Variable expense per unit \$103.50 • Fixed expense per month \$518,650 Assume the company’s monthly target profit is \$12,650. Determine unit sales and dollar sales to attain that target profit. Total Per Unit Sales (4200 units) \$966,000 \$230 Variable Expense \$ 434,700 \$ 103.5 Contribution Margin \$ 531,300 \$ 126.5 Fixed Expenses \$ 518,650 Net Operating Income \$ 12,650 4. Allen Inc. has provided its contribution format income statement for July. Sales \$558,000 Variable expenses 306,900 Contribution margin \$251,100 Fixed expenses 209,800 Net Operating Income \$41,300 Compute the degree of operating leverage to two decimal places. \$251,100/ \$41,300 6.08...
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ACC 216 ch 6 - Data Concerning that product appear below...

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