in Class Ch 5

# in Class Ch 5 - -f/c>cx x u?s:=-4ocL c What is the...

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Managerial In Class Chapter 5 1. Mechem Corporation 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 total fixed expenses were \$82,400. Required: a. Construct the company's contribution format income statement for April in good form. b. Redo the company's contributisg format income statement assuming that the company sells 2,200 units. 2-\t:o -\:teill <r lL')rJE.,Li zt?-ooo '2o 19!+i- -_ _qg 1?t* -*{'rott - c = 5l >\ ()()a-) 2. Spencer Company's most recent monthly contribution format income statement is given below: fC,LP=Urr-rrtS Lr\$rt CI\N Fe+p _ ,t \+, C 1\A\2 r-l\A C.M{Z= f.,4i._ The company sells its only product for \$10 per unit. There were no beginning or ending inventories. Required: a. What are total sales in dollars at the break-even point? nt) pn>FrVi FL/tr.>-s o lSutlc)./'u, Z'-= a 2c,c'(> b. What are total variable expenses at the bieak-even point?

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Unformatted text preview: -f /c>cx-) x u.?s-:=:-4ocL) c. What is the company's contribution margin ratio? 'Ltsu/ o d. If unit sales were increased by 10% and fixed expenses were reduced by \$2,000, what would be the company's expected net operating income? (Prepare a new income statement.) SaIes. ....... Variable expenses Contribution margin. .......... Fixed expenses \T-+ ^^-*-+i-^ l^." ulurb rverrr I 5l-rt-x-, f ,,,7<; rv L' OL)LT) 'Z?)'','r, 5 &>ct:{(-; x \'\ \L -\e-L'(})X \ ' \ c'An Lo tt, O OO a' -', "tq\C)L) l\"f'z C) Cr \ LPCTO/'.) c) oc)A F(:' \<DLL)- ZJ-L> lN Ct4ss c,Enh+s 3. Bussy Corporation produces and sells a single product whose contribution margin ratio is 54Yo.The company's monthly fixed expense is \$561,600 and the company's monthly target profit is \$34,560. Required: Eetermine the dollar sales to attainthe company's target profit. Show your work! FU bbtrp + 3q€{go = I, \o.-r, ooo l) rv '/ O,q=t1 ?....
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in Class Ch 5 - -f/c>cx x u?s:=-4ocL c What is the...

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