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Introduction to Managerial Accounting Ch 5 Foundational 15

In:

Submitted By ChrisCE
Words 371
Pages 2
% Sales Variable expenses Contribution Margin Fixed Expenses Net operating income $ 20,000.00 $ 12,000.00 $ 8,000.00 $ 6,000.00 $ 2,000.00

per unit $ 100% $ 20.00 60% $ 12.00 40% $ 8.00

1.

Total contribution margin Total units sold Contribution margin per unit

$ $

8,000.00 1,000 units 8.00 per unit

2.

Total contribution margin Total sales Contribution margin ratio

$ 8,000.00 $ 20,000.00 40%

3

Total variable expenses Total sales Variable expense ratio

$ 12,000.00 $ 20,000.00 60.00%

4

Contribution margin per unit Increase in unit sales Increase in net operating income Units 900

$ $

8.00 per unit 1 unit 8.00 Per unit $ 20.00 $ 12.00 $ 8.00

5. Sales Variable expenses Contribution margin Fixed expenses Net operating income 6. Sales Variable expenses Contribution margin Fixed expenses Net operating income

$ 18,000.00 $ 10,800.00 $ 7,200.00 $ 6,000.00 $ 1,200.00

Units 900

Per unit $ 16,200.00 $ 18.00 $ 9,720.00 $ 10.80 $ 6,480.00 $ 7.20 $ 6,000.00 $ 480.00

7

Sales Variable expenses Contribution margin Fixed expenses Net operating income

1250

$ 25,000.00 $ 16,250.00 $ 8,750.00 $ 7,500.00 $ 1,250.00

$ $ $

20.00 13.00 7.00

8

Profit

$6,000.00 $8.00

= = = = = =

Unit CM X Q - Fixed expenses

750

units

9.

Profit

$6,000.00 40.00%

= = = = =

CM ration X Sales - Fixed Expenses

$15,000

10

Profit

$5000+$6000 $8 11 Sales Break-even sales at units Margin of safety (in dollars) Margin of safety (in dollars) Sales Margin of safety percentage

= = = = = =

Unit CM X Q - Fixed expenses

1,375 $ 20,000.00 $ 15,000.00 $ 5,000.00 $ 5,000.00 $ 20,000.00 25.00%

Units

12

Contribution margin Net operating income Degree of operating leverage Degree of operating leverage % increase in sales % increase in net operating income

$ $

8,000.00 2,000.00 4.0 4 5% 20%

13

14

Contribution margin Net operating income Degree of operating leverage

$ $

14,000 2,000

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