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 companys 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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