Use the following information to determine the change in income from operations

# Use the following information to determine the change

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10. Use the following information to determine the change in income from operations foreach situation if the company sells its products for \$4 each.a. Contribution margin ratio of 35% and a 10,000 increase in sales units. b. Unit contribution margin of \$2.10 and an increase of \$20,000 in sales. c. Contribution margin of ratio of 30% and an increase in sales of \$30,000. 11. Determine the change in income from operations for each situation for a company thathas an increase in total sales of \$52,000.a. Unit contribution margin of \$4.50 and each product selling for \$8. b. Contribution margin ratio of 24% and each product selling for \$10. c. Unit contribution margin of \$6, with total variable costs of \$25,000 at \$5 perunit. 6 Chapter 19 12. During 2015, Jackson Computer Supply produced income from operations of \$95,000from sales of 80,000 units at \$2.50 each. The company’s fixed costs totaled \$22,000. Ifthe company has a 4,000 increase in sales units in the upcoming year, what will incomefrom operations be for 2016? Assume that fixed costs and the selling price and variablecost per unit will remain the same. 13. A new manufacturing company would like to know the sales needed to break-even forthe first year of operations. The expected total fixed costs will be \$27,000 for 15,000units. The company expects to sell the units for \$10 each and incur variable cost of \$4per unit. Determine the break-even sales point in dollars and units. Cost Behavior and Cost-Volume-Profit Analysis 7  #### You've reached the end of your free preview.

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