Accnt Hw P4-28 - $10,000 Contribution Margin gain $15,000...

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Sales price per pair of sandals  $40  Variable expenses per pair of sandals 16 Contribution margin perpair of sandals  $24  Fixed expenses per year: Building rental  $15,000  Equipment deprciation 7000 Selling 20000 Administrative 18000 Toatal fixed expenses  $60,000  Break even units 2500 Total sales dollars  $100,000  Total ExpensUnits Fixed ExpeUnits Total Sales Units  $60,000  0 60000 0 0 0  $124,000  4000 60000 4000  $160,000  4000 Contribution Margin= Fixed expenses+Profit  $78,000  Units= Contribution Margin/CM per unit  3,250  Units gain=Sales/40 625 Variable expenses gain
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Unformatted text preview: $10,000 Contribution Margin gain $15,000 Fixed expenses gain $8,000 Net Operating Income gain $7,000 500 1000 1500 2000 2500 3000 3500 4000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 CVP Graph Column A Column C Column E Volume Money Yes, she gains $7,000 per year. Sales (3,000 pairs) $120,000 Variable expenses 48000 Contribution margin 72000 Fixed expenses 60000 Net operating income $12,000 Degree of operating leverage 6 6*50%=300%...
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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 P4-28 - $10,000 Contribution Margin gain $15,000...

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