Accnt Hw P4-22 - $9,750 Sales (19,500 units * $30 per unit)...

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Problem 4-22 Sales (19,500 units * $30 per unit) $585,000 Variable expense 409,500 Contribution margin 175,500 Fixed expense 180,000 Net operating loss $(4,500) CM ratio= 30% Break-even point units 20000 Break-even point dollars $600,000 Sales ($30 per unit) $665,000 Variable expense 465,500 Contribution margin 199,500 Fixed expense 196,000 Net operating income $3,500 The company's monthly net operating income increase by 7000 Units 39000 Sales ($27 per unit) $1,053,000 Variable expense 819,000 Contribution margin 234,000 Fixed expense 240,000 Net operating loss $(6,000) Units 19461.54 Sales ($30.75 per unit) $598,442 Variable expense 408,692 Contribution margin 189,750 189750=30.75*units-21 Fixed expense 180,000 Net operating income
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Unformatted text preview: $9,750 Sales (19,500 units * $30 per unit) $585,000 Variable expense 351,000 Contribution margin 234,000 Fixed expense 252,000 Net operating loss $(18,000) CM ratio= 40% Break-even point units $21,000 Break-even point dollars $567,000 Not automate Sales (26,000 units * $30 per unit) $780,000 Sales (26,000 units * $3 Variable expense 546,000 Variable expense Contribution margin 234,000 Contribution margin Fixed expense 180,000 Fixed expense Net operating income $54,000 Net operating income The company should automate its operations because they will make more profit. 1*units Automate 30 per unit) $780,000 468,000 312,000 252,000 $60,000...
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This note was uploaded on 09/04/2011 for the course ECON 161 taught by Professor Jamesbaker during the Fall '11 term at University of Houston.

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Accnt Hw P4-22 - $9,750 Sales (19,500 units * $30 per unit)...

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