AC505 Chap 6 Hmwk Solutions - Chapter 6 Cost-Volume-Profit...

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Unformatted text preview: Chapter 6 Cost-Volume-Profit Relationships Exercise 6-1 (20 minutes) 1. The new income statement would be: Total Per Unit Sales (10,100 units)......... $353,500 $35.00 Variable expenses........... 202,000 20.00 Contribution margin......... 151,500 $15.00 Fixed expenses................ 135,000 Net operating income....... $ 16,500 You can get the same net operating income using the following approach: Original net operating income..... $15,000 Change in contribution margin (100 units × $15.00 per unit)..... 1,500 New net operating income........... $16,500 2. The new income statement would be: Total Per Unit Sales (9,900 units)............. $346,500 $35.00 Variable expenses.............. 198,000 20.00 Contribution margin............ 148,500 $15.00 Fixed expenses.................. 135,000 Net operating income......... $ 13,500 You can get the same net operating income using the following approach: Original net operating income.............. $15,000 Change in contribution margin (-100 units × $15.00 per unit)............ (1,500 ) New net operating income................... $13,500 Exercise 6-1 (continued) 3. The new income statement would be: Total Per Unit...
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This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.

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AC505 Chap 6 Hmwk Solutions - Chapter 6 Cost-Volume-Profit...

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