Template for PR 3-36, Horngren, 13E(1)

Template for PR 3-36, Horngren, 13E(1) - 45% Contribution...

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Solution to Problem 3-36, Horngren, 13th Ed., ACC 311 Section Prepared by R. A. RO and COMPANY COST-VOLUME-PROFIT ANALYSIS INSTRUCTIONS: 1. Enter the Base Line Data (i.e., the starting point values for selling price, variable cost per unit, etc.) in the appropriate cells, below. 2. Enter EITHER a percentage change OR a dollar amount change in the "Change Amount" cells, below. 3. Revised Data and Revised Results will be automatically calculated. Change Amount % $ Amount Selling Price per unit: $25.00 6.0% Selling Price per unit: $26.50 Variable Cost per unit: $13.75 Variable Cost per unit: $13.75 Total Fixed Costs: $135,000 $15,532 Total Fixed Costs: $150,532 Sales in Units: 20,000 $50,000 Sales in Units: $21,887 Tax Rate: 40% 40% Tax Rate: 40% Variable Cost Ratio: 55% Variable Cost Ratio: 52% Contribution Margin per unit: $11.25 Contribution Margin per unit: $12.75 Contribution Margin Ratio:
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Unformatted text preview: 45% Contribution Margin Ratio: 48% Breakeven Point in Units: 12,000 Breakeven Point in Units: 11,806 Breakeven Point in Dollars: $300,000 Breakeven Point in Dollars: $312,870 Income: Income: Sales $500,000 Sales $580,000 Less: Variable Expenses 275,000 Less: Variable Expenses 300,943 Contribution Margin $225,000 Contribution Margin $279,057 Less: Fixed Expenses 135,000 Less: Fixed Expenses 150,532 Net Operating Income $90,000 Net Operating Income $128,525 Less: Tax Liability 36,000 Less: Tax Liability 51,410 Net Income After Tax $54,000 Net Income After Tax $77,115 Degree of Operating Leverage: 2.500 Degree of Operating Leverage 2.171 Percentage Increase in NOI: 43% Dollar Increase in NOI: $23,115 Base Line Data (2008) : Revised Data (2009) : Projected Tax Rate: Base Line Results : Revised Results :...
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