INClassCh5.pdf

# INClassCh5.pdf - Required: i 1- ''' t ,,.' a. What are...

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Managerial In Class Chapter 5 1. Mechem Cerperatien produces and sells a single product. In April, the company sold 2,100 units. lts totai sales were S205,80e, 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 contribution format income statement assuming that the company sells 2,200 units. ),-)'f,"'t -,-4, q,'\x l- . ir' l ': , 'rti \ .,-rru n,.'a\,-t t1,,i-l1 ,'-u-.ri ,1'\ r :, ,.i 'L\t .\.: \N.r I ' .'t ' , ' '\ .,.-r\' \ -J -\)-- r , .,t .) . ., , , 2. Spencer Company's most recent monthly contribution format income statement is given below: fr.tt ! !"\.\ Sales ........ \$60,000 I Variable expenses 45.000 Contribution margin. .......... 15,000 Fixed expenses .. 18.000 lrT-t ^-^+o+;-^ l^"" /S? nn n\ ^ tvt vf,vroLrlrb lvDrtt,. . \!ig+!4,, The company sells its only product for \$10 per unit. There were no U"gln t;ng or ending inventories.

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Unformatted text preview: Required: i 1- ''' t ,,.' a. What are total sales in dollars at the break-even point? b. What are total variable expenses at the break-even point? c. What is the company's contribution margin ratio? A, '., (\ ii ,(, -i _ -). . ., 'l r^' ,! 'o, git rrrr.U X i.&quot;^ :.ri '\, ) i! ,J.) * 11. . 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.) S '-lh,\':: L \.\ * \,!.:*)] \P- !,'? i}}) { \, \ t' \tq .,r},.) N,l\\ i - l\'r lN ltAS q6a2v6pJ 3. Bussy Corporation produces and sells a single product whose contribution margin ratio is 54Yo.The company's monthly fixed expense is \$551,600 and the company's monthly target profit is \$34,560. Required: Detemrine the dollar sales to attain the company's target profit. Show your work! Yc-' \$,N l:)S!_- \,\rq,utr .5\ 3\0NN rlc crlr1 \r&quot;* \t1o re, xs s\ut b9lN \ Q....
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## INClassCh5.pdf - Required: i 1- ''' t ,,.' a. What are...

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