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Duve Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.Sales (2,000 units)$40,000Variable expenses24,000Contribution margin16,000Fixed expenses11,200Net operating income$ 4,800If the selling price increases by $4 per unit and the sales volume decreases by 200 units, the net operating income would be closest to:ExplanationSelling price per unit ($40,000 ÷ 2,000 units)$ 20Variable cost per unit ($24,000 ÷ 2,000 units)12Unit contribution margin$8Selling price ($20 per unit + $4 per unit)$24per unitVariable cost per price12per unitUnit contribution margin (a)
Hedman Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.Sales (9,000 units)$270,000Variable expenses202,500Contribution margin67,500Fixed expenses63,750Net operating income$3,750The margin of safety percentage is closest to:Gayne Corporation's contribution margin ratio is 12% and its fixed monthly expenses are $84,000. If the company's sales for a month are $738,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.
Hiss Corporation's activity for the last six months is as follows:Machine Hours Electrical CostJuly2,000$1,560August3,000$2,230September2,400$1,750October1,900$1,520November1,800$1,450December2,100$1,600Using the high-low method of analysis, the estimated fixed cost per month for electricity is closest to: (Round your intermediate calculations to 2 decimal places.)