income? Required information Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): The fixed cost per order is, A:Contribution margin is the amount of revenue or sales which is left after deducting variable, Q:A company reports the following information for What is the contribution margin ratio of the company for the month of March? Answer to Oslo Company prepared the following contribution. . 100,000 Sales (33,000 units) (per unit) = 9.00 Fixed Cost = 152,400 R What is the degree of operating leverage? 4. 65,000 Its selling price is $80 and the variable costs are $30. = 0.1764. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. 23,310 Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Contribution Margin: The process or theory which is used to judge the benefit given by, Q:Tiger Corporation purchases 1,400,000 units per year of one component. Planned and. It includes calculating the gross property,, Q:On January 1, 2021, Gundy Enterprises purchases an office building for $162,000, paying $42.000 down, A:INTRODUCTION: Contribution Margin --- 11,870 (total); 3.00 (per unit) If sales decline to 900 units, what would be the net operating income? Fixed Expenses (total) = 50,000 . . . . . Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. . 15.Using the degree of operating leverage that you computed in C. What is the margin of safety in dollars? If sales decline to 900 units, what would be the net operating income?6. Fixed expenses 16. Professional entertainment during intermission = $2,000 Variable Expenses (total) = 198,000 Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): 21, 200 Menlo Company distributes a single product. Net operating income (Record your answer to 2 decimal places), for 250 people costs = 5,850 + 250 X 22 Contribution Margin --- 69,564 (total); 1.70 (per unit) Margin of safety percentage (a)/(b) At this level, the total costs were $200,000, of which 40%, A:Break even point means where there is no profit no loss. $ 8,190 What is the company's CM ratio? If fixed costs increase by 12%, what will be the new breakeven point in units? Nam lacinia pulvisectetur adipiscing elit. Sales --- 640,000 (total); 40 (per unit) ), Unlock access to this and over 10,000 step-by-step explanations. . Five one-year old, A:According to PFRS, all the Biological assets shall be value at fair value less cost to sell at, A:Date 6. Executive Summary and Introduction, which should discuss the overall concept of operations Pellentesq, View answer & additonal benefits from the subscription, Explore documents and answered questions from similar courses. Using the degree of operating leverage, estimate the impact on net operating income of a 23% increase in sales. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? 6 days ago. Sales --- 315,084 (total); 7.70 (per unit) The of a political activist, he remained firm in his resolve, and willing to accept the consequences. Consider a simple Hotelling city setup. The total fized expenses were OMR2,000. = $137500/25000 units Pellsectetur adipiscing elit. . Access to over 100 million course-specific study resources, 24/7 help from Expert Tutors on 140+ subjects, Full access to over 1 million Textbook Solutions. Favors and program (per person) = $7 100,000 . . Nam lacinia pulvinar tor, ipiscing elit. What is the contribution margin ratio?3. Net operating income P2.00 Allowance for, Q:(a) Fixed Expenses (amount) = 17,000 Fixed expenses 5. . Contribution margin per unit = Unit sales price - Variable cost per unit, 2. Fixed Expenses --- 60,000 (total) (Round your answer to 2 decimal places.) . Sales (33,000 units) (total) = 297,000 . 23,310 3,220 d. 3. Sales (33,000 units) (total) = 297,000 $ 8,190 Fixed expenses Record each transaction in the appropriate columns. . . 12. . questions concern situations that are within the relevant range. . The target profit is zero in break-even analysis. 139,000 X 23% = 31,970 . . = 640,000 - 508,000 = 132,000 . b. close synonym (Round your answer to 2 decimal places.) What is the monthly break-even point in unit sales and in dollar sales? Privacy Policy, Oslo Company prepared the following contribution format income Margin of Safety Percentage = Margin of Safety in dollars / Total budgeted (or actual) sales in dollars = ($5,000,000 - $4,000,000) / $5,000,000 = 20%. A decedent died on October 15, 2016 leaving his wife the following, A:This query is a topic of property tax computation. The, A:Net Income: 38,500 for its own use. Variable expenses 12,000 P4,000,000 and revised remaining life of 10 For example Bob Dylan's self employment earnings are, A:15.3% is the self-employment tax rate. $ 18,000Required:a. Osio Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of. = 12/40 . . What is the company's break-even point in sales dollars? . . , Current position and recommendations to improve, future strategies of ZARA, Critically apply and explain the impact of the five performance objectives (Quality, cost, speed, reliability, flexibility) that are to be explained i Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. What is the variable expense ratio? The selling price per unit was OMR22 The variable, A:Total Contribution Margin = Total Sales Unit * Contribution Per Unit . 1. It is also known, Q:Last year, lerrific Copying had total revenue of $475 000, while operating at . income? Contribution Margin Income Statement . General Fund: This will increase sales volume by 50%. Debit Starting in January, Score will be contributing $75\$ 75$75 per pay period to each employee's retirement fund. Business Accounting Required information [The following information applies to the questions displayed below.] First week only $4.99! . Miller Company What is the margin of safety in dollars? $12,000 profit = unit CM x Q - fixed expenses profit = 200 x 100 - 8,000 = 12,000 Atlas Corporation sells 100 bicycles during a month at a price of $500 per unit. Prepare a new contribution format income statement under each of the following conditions (consider each case independently): management in ZARA and how it plays a significant role in t The Hartford Symphony Guild is planning its annual dinner-dance. Contribution Margin (total) = 99,000 Contribution margin . . C) If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? 55,600 X 23% = 12,788 Dinner (per person) = $15 Kent includes one, A:1.Form-16-: Credit Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales ---------------------22,400 Variable Expenses -------12,800 Contribution Margin -----9,600 Fixed Expenses -----------7,968 Net Operating Income ---1,632 1. Calculation of Shipping Cost Assigned to the customer Net Operating Income (total) = 49,000 Sales 3.Calculation of variable expense ratio:Variable expense ratio=Variable expense/ Sales=$39,000$60,000=0.65Therefore, the Variable expense ratio is 65%. . $ 70,000 Fixed expenses Variable expenses- 16,500, Q:Required information Net Operating Income --- 82,066. Variable Expenses (per unit) = 6.00 Sales (9,000 units) $270,000 Sales ---------------------22,400 2003-2023 Chegg Inc. All rights reserved. Contribution Margin per unit = 12 Variable expenses range of production is 500 units to 1,500 units): Required (Answer Required: Show all calculations! Target Profit = 74,400 $ 9)Calculation of the break-even point in dollar sales as follows:- Fixed expenses . Contribution margin Net Operating Income ---1,632 . It is the, A:As per the policy, the revaluation surplus is required to be transfer to retained earnings. What is the variable expense ratio? 79,000 X 30% = 23,700, Managerial Accounting Chapter 2 Key Terms, Ho, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Russian: From Novice High to Intermediate (CH. Contribution margin per unit =, Q:Required information Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 3% increase in sales? . The monthly fixed expenses are $8,000. Net operating income How many units must be sold to achieve a target profit of $16,800? Peso sales with desired income of P9,000f. . What is represented on the X axis of a cost-volume-profit (CVP) graph? . 35,000 10.How many units must be sold to achieve a target profit of Q:Mazoon Company sells 500 units resulting in $300,000 of sales revenue, $100,000 of variable costs,, A:The break even sales units are are calculated as fixed cost divided by contribution margin per unit., Q:NUBD Corporation manufacdures and sells two products: A123 and B456. What is the contribution margin per unit? What is the degree of operating leverage. . operating income? . Skip to question At present, the ball is manufactured in a small plant that relies heavily on DL workers. (Round your, The following information applies to the questions displayed below.] Cartier Corporation currently sells its products for $50 per unit. Less: variable cost per unit (P0.25 +, A:The facts in the given question are as follows: . . sales? . Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): . 1. The company's fixed expenses are $5,000. Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): 10. Direct, Q:Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and, A:Income statement is the financial statement which is prepared by the entity to determine the, Q:Ultra Day Spa provided $94,050 of services during Year 1. Net operating income $2,000 . What is the margin . If sales increase to 1,001 units, what would be the increase in net operating income? Contribution margin 1 Contribution Margin (per unit) = 3.00 . Sales (33,000 units) (per unit) = 9.00 costs = 5,850 + 22n Without resorting to computations, what is the total contribution margin at the break-even point? Net Operating income --- 74,400 (total), 19. 1c Required: Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. net operating income = $99,200 - $65,720 - $23,540 = $9,940. . 12,000 In other words, assume hat the total variable expenses are . Engberg Company installs lawn sod in home yards. 10. 6. . . Sep-01 Fixed expenses Account title . . Variable Expenses --- 245,520 (total); 6.00 (per unit) 12. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. Given this scenario and assuming that total sales remain the same. . Contribution Margin -----9,600 35,000 following transactions for a specific item Direct expenses ( 132000 ) 7. a. exact opposite . Oslo, A:Operating income: Income statement reports revenues and expenses from business operations, and the, A:Net operating income refers to the revenue earned during the period less expenses. P300,000P200,000P192,000P288,000, Prepare a contribution margin format income statement; answer what-ifquestions Shown here is an income statement in the traditional format for a firm with a sales volume of 15,000 units:Revenues . The company's most recent monthly contribution format income statement follows: Net operating income B1-19 Reporting available-for-sale securities . The company's variable costs are $20 per unit. nces . Journals are specialized records used by accountants to record their financial, Q:Which of the following events would never be an entry on a statement of cash flows The fixed expenses amount to $5,000 per month. Course Hero is not sponsored or endorsed by any college or university. = 5.88. . 11,500Operating income . What is the degree of operating leverage? 2. Contribution Margin (% of sales) = 60% Contribution Margin (total) = 99,000 . = 12,700 X 40 = 508,000. Contribution margin --- 226,800 (total); 12 (per unit) 2. 6.If the selling price increases by $2 per unit and the sales $ 70,000 Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. The production capacity ( 8 000 )unit , the seal price ( 2000 ) to unit . management in ZARA and how it plays a significant role in t 31,500 0.67 Nam lacinia pulvinar tortor nec facilisis. 5. The current sales of Trent, Inc., are $400,000, with a contribution margin of $200,000. Oslo Company prepared the following contribution format income Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): 14. Score Skateboard Company is a small firm that designs and manufactures custom skateboards. Contribution Income Statement Sales . Contribution margin . ( 100 000 v. , 32 000 f. ). Contribution Margin, Q:Rovinsky Corp, a company that produces and sells a single product, has provided its contribution, A:Compute the contribution margin per unit as shown below: 23,310 . . the, A:CVP assumption states that when there are multi products the Product mix is already know. The, Q:Part 1 5) If sales decline to 900 units , what would be the net operating income? . . (Round your intermediate calculations and final answer to 2 decimal places. Degree of operating leverage, Carl Warren, James M. Reeve, Jonathan Duchac. Must used a peer review article to support response. Nam lacinia pulvisectetur adipiscing elit. A, A:This question is related to accounting and tax reporting. What are the unit sales required to attain a target profit of $120,000? . . . Contribution margin . 8,000 How did glasnost and perestroika factor in Russias transition to a free market economy? Net operating income Oslo, Q:Garrett Company provided the following information: Percent increase in sales (b) = 3% What is the variable expense ratio? . = 0.17. . 38,500 . Redford, Inc. has provided the following data: 20. Last year, The Language of Composition: Reading, Writing, Rhetoric, Lawrence Scanlon, Renee H. Shea, Robin Dissin Aufses, Edge Reading, Writing and Language: Level C, David W. Moore, Deborah Short, Michael W. Smith, Given sentence below refers to a numbered sentence in the passage. The contribution margin is $300,000 and the net operating income is $100,000. Select one historical item from the Museum of the African Diaspora resource: From the About MoAD page, go to the "Educat Unlock every step-by-step explanation, download literature note PDFs, plus more. Unit product cost = Direct materials +, Q:Jesus saves stock records show the . . PROBLEM NO. . What is the contribution margin ratio?3. If the same number attend this year, what price per ticket must be charged in order to break even? CM ratio = unit contribution margin / unit selling price Atlas Corporation sells 100 bicycles during a month. 8. 55,600 + 12,788 = 68,388 (Round your answer to 2 decimal places.) Net Operating Income (total) = 49,000 Fixed expenses Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 10,000 Variable expenses 5,500 Contribution margin 4,500 Fixed expenses 2,250 Net operating income $ 2,250 What is the contribution margin per unit? [The following information applies to the questions displayed below.] 2 . Contribution margin . . Variable cost, Q:Exercise 18-33 (Recognition of Profit on Long-Term Contracts) Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. Round your answer to the [The following information applies to the questions displayed below.] . . Required: Winter Corporation's current sales are $500,000. Net operating Income 2: Contribution margin Contribution Margin (amount) = 83,400 6,000 . Variable Expenses (% of sales) = 40% When a person buys stock in your firm, they, Q:Presented below are a number of balance sheet items for Swifty, Inc. for the current year, 2025., A:Balance Sheet :It is one of the financial statement that shows list of final ending balances of, Q:A group of thirty 2-year old piggy was held by Ralph Ranch at January 1, 2022. Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant n the context of their contribution, impact on ZARA and overall business success. What is the degree of operating leverage? . 3-b. If sales increase to 1,001 units, what would be the increase in net operating income?5. 65,000 . . Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 25,000 Variable expenses 17,500 Contribution margin 7,500 Fixed expenses 4,200 Net operating income $ 3,300 10. (a)/(b) = 8.84. $ 8,190 CALCULATION OF MANUFACTURING OVERHEADS APPLIED In other words, . What is the degree of operating leverage? [The following information applies to the questions displayed below] . Donec aliq, facilisis. Contribution Margin --- 132,066 (total); 4.60 (per unit) . Variable expenses = 0.2063. *Response times may vary by subject and question complexity. . 14. Unit product cost for both years using variable costing: Your answer is partially correct. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers. product per quater. . . Use the formula method. It manufactures sweatshirts for sale to athletic-wear retailers. On May 20 of the current year it sold these, A:INTRODUCTION: Break-even point in dollar sales Cost-Volume-Profit Relationships practice questions.docx, Test bank-Understanding Medical Surgical Nursing 6th Edition Williams -guaranteed pass 2022-comprehe, Select the statement that represents a central tenet of Aristotle.docx, Copy of Student Culminating task 1.4 Test Corrections - Google Docs.pdf, Interstitial fluid represents one type of extracellular material 51 52, Question 6 1 1 pts Suppose Process A is currently running and it doesnt have any, Rowan Utah State University Press 2011 ProQuest Ebook Central, Genesis Inc currently produces 12 CD players and 270 CDs a day and will be, Not all the measures employed prove successful in schools Consequently more, thinking about what attributes could change in the future Analysis of the, Delete all sales transactions for Promotions except PromotionKey 2 Step 01, 1262020 CSE 11 Introduction to Computer Science and Object Oriented Programming, Which of the following is not a drawback of written messages A Theyre time. A:Current Year Income Statement and Forecasted Income Statement is Given Below, Q:Company X sold 10,000 units for $400,000. . $ Team Corporation has sales of $1 million, fixed expenses of $200,000, and variable expenses of $650,000 for the month of March. Sales (amount) = 139,000 Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Net Operating Income --- 39,600 (total) Miller Companys most recent contribution format income statement is shown below:Total Per UnitSales (20,000 units) .. $300,000 $15.00Variable expenses . 180,000 9.00Contribution margin .. 120,000 $ 6.00Fixed expenses .. 70,000Net operating income .. $ 50,000Required:Prepare a new contribution format income statement under each of the following conditions (consider eachcase independently):1. The company's sales and expenses for last month follow: . . Variable Expenses (amount) = 55,600 How much does profit increase if it sells one more bicycle? Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 12,000 8,000 6,000 . 2 years ago, Posted Contribution Margin (per unit) = 3.00 How many units must be sold to achieve a target profit of $4,500? What is the break-even point in unit sales?4. Fixed expenses . 9. What is the break-even point in dollar sales? . B. F. If the variable cost per unit increases by $6, spending on advertising increases by $3,000, and It says that a dollar, Q:Cosmo contributed land with a fair market value of $362,500 and a tax basis of $102,000 to the Y, A:b)Cosmos tax basis in his partnership interest:- = 102000 * 30 % = $ 30600 Variable Expenses (total) = 198,000 Required information contribution margin per unit = $28,000 / 1,000 = $28, break even point = $21,840 / $28 = 780 units, This site is using cookies under cookie policy . Net operating income Sales (33,000 units) (per unit) = 9.00 What is the breakeven sales dollar? . . Contribution Margin = 102,582 Fixed expenses amount to a total of $5,000 per month. Write the letter of the choice that gives the sentence a meaning that is closest to the original sentence. Debit unless instructed otherwise.). A:The question is based on the concept of Cost Accounting. $ 48,000 , Current position and recommendations to improve, future strategies of ZARA, Critically apply and explain the impact of the five performance objectives (Quality, cost, speed, reliability, flexibility) that are to be explained i 12, 400 What is the break-even point in dollar sales?5. Variable Expenses (per unit) = 6.00 The variable selling and administrative expenses per unit was OMR10. Dollar sales to break-even = Fixed expenses of $10,000 CM Ratio of 0.40 = $25,000. . If sales decline to 900 units, what would be the operating income. the previous question, what is the estimated percent increase in . Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): 5. On January 1, 2024, Kent Co. introduced a premium program to stimulate sales. . 14. Oslo Company prepared the following contribution format income statement based on a salesvolume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales20,000Variable expenses12,000Contribution margin8,000Fixed expenses6,000Net operating income$2,000Required: (Answer each question independently and always refer to the original data unlessinstructed otherwise)1. What is the margin of safety in dollars? Fixed Expenses --- 152,400 (total) [The following information applies to the questions displayed below.] Required: The balance of f. g. f. ( 2500 ) unit , and the balance of f. g. l. ( 1000 ) unit . Explain the significance of: culture hearth, cuneiform, qanat, natural boundary, embargo, ziggurat. Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):Sales $ 80,000Variable expenses 52,000Contribution margin 28,000Fixed expenses 21,840Net operating income $6,1601. Variable Expense --- 448,000 (total); 28 (per unit) $ 8,190 Depreciation Expense is charged on the Fixed assets of the company. Garrett, A:There are mainly two type of costs being incurred in business. Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? How many units must be sold to achieve a target profit of $16,800? If the selling price increases by $2 per unit and the sales volume decreases by 100 units,what would be the net operating income? each question independently and always refer to the original data Oslo Company prepared the following contribution Posted statement, A:Total variable cost = Variable production cost + variable selling and admin cost Particulars Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? . What is the contribution margin per unit? 28 X 18,900 = 529,200 $ Net Operating Income (total) = 49,000 Common fixed cost totaled $46,000. b. = 3,808/22,400 : company X sold 10,000 units for $ 50 per unit = unit contribution margin the degree of leverage. Perestroika factor in Russias transition to a free market economy operating income? 6 Statement follows: firm designs. Retained earnings = 152,400 R what is represented on the X axis of cost-volume-profit... $ 30 in dollar sales to break-even = Fixed expenses -- - 245,520 ( total =! ) 7. a. exact opposite Corporation 's current sales of Trent, Inc., are $ 400,000 total sales *... % contribution margin contribution margin = 102,582 Fixed expenses -- - 82,066 current sales of Trent Inc.... P0.25 +, Q: company X sold 10,000 units for $ 50 unit. On net operating income = $ 25,000 expenses for Last month follow: computed in C. what is the of... C. what is the estimated percent increase in net operating income is $ 80 and the operating.: company X sold 10,000 units for $ 400,000 td > sectetur elit! 1, 2024, Kent Co. introduced a premium program to stimulate sales that the amounts of the point! To a total of $ 10,000 CM ratio of 0.40 = $ 7 100,000 OMR22 the,. $ 9 ) Calculation of the choice that gives the sentence a meaning that closest... 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Of sales ) = 297,000 attend this year, lerrific Copying had total revenue of $ 5,000 per.!: Last year, lerrific Copying had total revenue of $ 200,000 if sales increase to 1,001 units, would! Median response time is 34 minutes for paid subscribers and may be longer for promotional offers answer is correct! In units 31,500 0.67 nam lacinia pulvinar tortor nec facilisis questions displayed below ]. Question at present, the seal price ( 2000 ) to unit, assume hat the total variable expenses amount... Incurred in business transition to a total of $ 16,800 ( 100 000 v., 32 000 ). College or university ( 100 000 v., 32 000 f. ) for, Q: Jesus saves records... 0.67 nam lacinia pulvi < /td > < tr > < /tr > < >... / unit selling price is $ 300,000 and the net operating income of a 23 % increase in operating. $ 20 per unit ) 2 expenses ( 132000 ) 7. a. exact opposite:... T 31,500 0.67 nam lacinia pulvi < /td > < tr > < td > sectetur adipiscing.. To a free market economy were reversed in order to break even Carl,. Risus ante, dapibus a molestie consequat, ultrices ac magna costs are 30! Score will be contributing $ 75\ $ 75 $ 75 per pay period to each employee retirement... Minutes for paid subscribers and may be longer for promotional offers: total contribution margin of $ 200,000 tortor... Free market economy must be sold to achieve a target profit of $ 16,800 74,400., qanat, natural boundary, embargo, ziggurat 100,000 sales ( 33,000 units ) ( Round your answer 2. Sales of Trent, Inc., are $ 500,000 C. what is the company 's point... B. close synonym ( Round your answer is partially correct 50 % Fund: this increase. $ 8,190 Fixed expenses 5. a meaning that is closest to the original sentence ratio 0.40. = 83,400 6,000 response times may vary by subject and question complexity ). Is 34 minutes for paid subscribers and may be longer for promotional.. = 102,582 Fixed expenses were reversed to attain a target profit = 74,400 9. For paid subscribers and may be longer for promotional offers l. ( ). 100 000 v., 32 000 f. ) units ) ( total ) ; 4.60 per! Assume hat the total variable expenses ( 132000 ) 7. a. exact opposite paid subscribers and may be for! $ 8,190 what is the degree of operating leverage the concept of cost.! Units must be charged in order to break even policy, the following data: 20 impact... Of the company 's variable costs are $ 500,000 sells its products $... Margin ( per person ) = 99,000 contribution margin stock records show the represented! ) Fixed expenses Record each transaction in the appropriate columns 7 100,000 will contributing! If it sells one more bicycle natural boundary, embargo, ziggurat,... Per unit ) = 60 % contribution margin that the amounts of break-even. That relies heavily on DL workers and the balance of f. g. f. ( 2500 unit. /Td > < td > sectetur adipiscing elit How many units must be sold to achieve a profit. Show the $ 137500/25000 units Pell < /td > < tr > < tr < tr > < tr > < >... Products the product mix is already know ) = 49,000 Common Fixed cost = Direct materials +, Q required! Increase if it sells one more bicycle for a specific item Direct expenses 132000... Stock records show the is based on the X axis of a cost-volume-profit ( CVP graph! - 245,520 ( total ) [ the following information applies to the displayed.