Category: Uncategorized

Presented is Jack Company’s Contribution Income Statement: JACK COMPANY Contribution Income Statement For the Month Ending January 31, 2020       Sales   $200,000   Less variable costs:       Direct materials $50,000     Direct labor 20,000     Variable factory overhead 60,000     Variable S&A expenses 12,000 (142,000 ) Contribution margin   $ 58,000   Less fixed costs:       Factory overhead $13,000     Fixed S&A expenses 12,000 (25,000 ) Net income   $ 33,000   Based on the contribution margin above, if Jack Company had $100,000 increase in sales, profit would increase by: Select one:

A basic assumption of the cost-volume-profit model is that Select one:

Rodger Corporation is selling its product at unit price of $15, variable cost per unit is $7, fixed cost is $12,000 and it is subjected to 40 percent tax rate (includes federal and state income tax).The desired after tax profit is $3,000, the number of units required to be sold is: Select one:

Dippin Cookie Corporation had the following income statement for 2020: Sales $25,000 Less variable costs – 15,000 Contribution margin $10,000 Less fixed costs –   8,000 Net income $ 2,000 Dippin Cookie’s 2020 operating leverage is:

Rodger Corporation is selling its product at unit price of $15, variable cost per unit is $7, fixed cost is $12,000 and it is subjected to 40 percent tax rate (includes federal and state income tax).The desired after tax profit is $3,000, the number of units required to be sold is: Select one:

he following costs related to Summertime Company for a relevant range of up to 20,000 units annually: Variable Costs:     Direct materials $2.50   Direct labor 0.75   Manufacturing Overhead 1.25   Selling and administrative 1.50 Fixed Costs:     Manufacturing overhead $10,000   Selling and Administrative 5,000 The selling price per unit of product is $15.00.At a sales volume of 15,000 units, what is the total cost for Summertime Company?

Last year, Angela Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 35%.If fixed expenses increase by $20,000 next year, what will sales have to be for the company to earn a profit of $80,000?

Barrington Corporation reported the following on their contribution format income statement: Sales (12,000 units) $175,000 Less: Variable expenses 100,000 Contribution margin 75,000 Less: Fixed expenses    62,500 Net operating income $ 12,500 If sales increase by 10%, net operating income will increase by what amount?

Cloudy Corporation has provided the following cost data for last year when 50,000 units were produced and sold: Raw materials $200,000 Direct labor 100,000 Manufacturing overhead 200,000 Selling and administrative expense 150,000 All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense.If the selling price is $12 per unit, the net operating income from producing and selling 120,000 units would be:

Barrington Corporation reported the following on their contribution format income statement: Sales (12,000 units) $175,000 Less: Variable expenses 100,000 Contribution margin 75,000 Less: Fixed expenses    62,500 Net operating income $ 12,500 For each additional unit of sales, net operating income will increase by: