Shown here is an income statement in the traditional format for afirm with a sales volume of 7,900 units. Cost formulas also areshown:
Revenues $ 34,500 Cost of goods sold ($5,600 +$2.2/unit) 22,980
Gross profit $ 11,520 Operating expenses: Selling ($1,180 +$0.1/unit) 1,970 Administration ($3,550 +$0.2/unit) 5,130
Operating income $ 4,420
the optional account names for the three boxes under variableexpense are:
Requirement 1:
Prepare an income statement in the contributionmargin format. (Omitthe "$" sign in your response.)
revenues $ Variableexpenses: cost of good sold $ selling expense
administrative expense
Totalvariable expenses
Contribution margin $ Fixedexpenses: cost of good sold $ admistratitve expenses selling expenses
Total fixedexpenses
operating income $
Requirement 2: Calculate the contribution margin per unit and thecontribution margin ratio. (Omit the "$" and "%" signs in your response. Roundcontribution margin per unit to 2 decimal places and contributionmargin ratio to whole number.)
Contribution margin perunit $ Contribution margin ratio %
Requirement3: (a) Calculate the firm's operating income (or loss) ifthe volume changed from 7,900 units to 11,850 units. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Omitthe "$" sign in your response.)
operating income $
(b) Calculate the firm's operating income (or loss) ifthe volume changed from 7,900 units to 3,950 units. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputall amount as positive values. Omit the "$" sign in yourresponse.)
operating income $
Requirement4: Refer to your answer to requirement 1for total revenues of $34,500. (a) Calculate the firm%u2019s operating income (or loss)if unit selling price and variable expenses per unit do not change,and total revenues increase by $10,500. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Omitthe "$" sign in your response.)
operating income $
(b) Calculate the firm's operating income (or loss) ifunit selling price and variable expenses per unit do not change,and total revenues decrease by $3,000. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputthe amount as positive value. Omit the "$" sign in yourresponse.)
operating income $
| Revenues | $ | 34,500 | |
| Cost of goods sold ($5,600 +$2.2/unit) | 22,980 | ||
| Gross profit | $ | 11,520 | |
| Operating expenses: | |||
| Selling ($1,180 +$0.1/unit) | 1,970 | ||
| Administration ($3,550 +$0.2/unit) | 5,130 | ||
| Operating income | $ | 4,420 | |
| | | ||
the optional account names for the three boxes under variableexpense are:
Requirement 1: |
Prepare an income statement in the contributionmargin format. (Omitthe "$" sign in your response.) |
| revenues | $ | |
| Variableexpenses: | ||
| cost of good sold | $ | |
selling expense | ||
| administrative expense | ||
| Totalvariable expenses | ||
| Contribution margin | $ | |
| Fixedexpenses: | ||
| cost of good sold | $ | |
| admistratitve expenses | ||
| selling expenses | ||
| Total fixedexpenses | ||
| operating income | $ | |
| | ||
| Requirement 2: |
Calculate the contribution margin per unit and thecontribution margin ratio. (Omit the "$" and "%" signs in your response. Roundcontribution margin per unit to 2 decimal places and contributionmargin ratio to whole number.) |
| Contribution margin perunit | $ |
| Contribution margin ratio | % |
| Requirement3: | |
| (a) | Calculate the firm's operating income (or loss) ifthe volume changed from 7,900 units to 11,850 units. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Omitthe "$" sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operating income (or loss) ifthe volume changed from 7,900 units to 3,950 units. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputall amount as positive values. Omit the "$" sign in yourresponse.) |
| operating income | $ |
| Requirement4: | |
| Refer to your answer to requirement 1for total revenues of $34,500. | |
| (a) | Calculate the firm%u2019s operating income (or loss)if unit selling price and variable expenses per unit do not change,and total revenues increase by $10,500. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Omitthe "$" sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operating income (or loss) ifunit selling price and variable expenses per unit do not change,and total revenues decrease by $3,000. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputthe amount as positive value. Omit the "$" sign in yourresponse.) |
| operating income | $ |
Related questions
Shown here is an income statement in thetraditional format for a firm with a sales volume of 7,900 units.Cost formulas also are shown: |
| Revenues | $ | 34,500 | |
| Cost of goods sold ($5,600 + $2.2/unit) | 22,980 | ||
| Gross profit | $ | 11,520 | |
| Operating expenses: | |||
| Selling ($1,180 +$0.1/unit) | 1,970 | ||
| Administration ($3,550 +$0.2/unit) | 5,130 | ||
| Operating income | $ | 4,420 | |
| | | ||
the optional account names for the three boxes under variableexpense are:
Requirement 1: |
Prepare an income statement in the contributionmargin format. (Omit the "$" sign in yourresponse.) |
| revenues | $ | |
| Variable expenses: | ||
| cost of good sold | $ | |
selling expense | ||
| administrative expense | ||
| Total variable expenses | ||
| Contribution margin | $ | |
| Fixed expenses: | ||
| costof good sold | $ | |
| admistratitve expenses | ||
| selling expenses | ||
| Total fixed expenses | ||
| operating income | $ | |
| | ||
| Requirement 2: |
Calculate the contribution margin per unit andthe contribution margin ratio. (Omit the "$" and "%" signs inyour response. Round contribution margin per unit to 2 decimalplaces and contribution margin ratio to whole number.) |
| Contribution margin per unit | $ |
| Contribution margin ratio | % |
| Requirement 3: | |
| (a) | Calculate the firm's operating income (or loss)if the volume changed from 7,900 units to 11,850 units.(Do not round yourintermediate calculations. Round your answer to the nearest dollaramount. Omit the "$" sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operating income (or loss)if the volume changed from 7,900 units to 3,950 units. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputall amount as positive values. Omit the "$" sign in yourresponse.) |
| operating income | $ |
| Requirement 4: | |
| Refer to your answer to requirement 1 for total revenues of$34,500. | |
| (a) | Calculate the firm%u2019s operating income (orloss) if unit selling price and variable expenses per unit do notchange, and total revenues increase by $10,500. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Omitthe "$" sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operating income (or loss)if unit selling price and variable expenses per unit do not change,and total revenues decrease by $3,000. (Do not round your intermediatecalculations. Round your answer to the nearest dollar amount. Inputthe amount as positive value. Omit the "$" sign in yourresponse.) |
| operating income | $ |
Shown here is an income statement inthe traditional format for a firm with a sales volume of 20,000units:
| Revenues | $ | 160,000 | |
| Cost of goodssold ($16,000 + $3.20/unit) | 80,000 | ||
| Grossprofit | $ | 80,000 | |
| Operatingexpenses: | |||
| Selling ($4,500+ $1.40/unit) | 32,500 | ||
| Administration($7,500 + $1.00/unit) | 27,500 | ||
| Operatingincome | $ | 20,000 | |
| | | | |
| Requirement 1: |
Prepare an income statement in thecontribution margin format. (Omitthe "$" sign in your response.) |
| $ | ||
| Variableexpenses: | ||
| $ | ||
| Total variableexpenses | ||
| Contributionmargin | $ | |
| Fixedexpenses: | ||
| $ | ||
| Total fixedexpenses | ||
| $ | ||
| | ||
| Requirement 2: |
Calculate the contribution marginper unit and the contribution margin ratio. (Round your answers to 1 decimal place. Omit the"$" and "%" signs in your response.) |
| Contribution margin per unit | $ |
| Contributionmargin ratio | % |
| Requirement 3: | |
| (a) | Calculate the firm's operatingincome (or loss) if the volume changed from 20,000 units to 25,000units. (Input the amount aspositive value. Omit the "$" sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operatingincome (or loss) if the volume changed from 20,000 units to 11,000units. (Input the amount aspositive value. Omit the "$" sign in your response.) |
| operating loss | $ |
| Requirement 4: | |
| Refer to your answer to requirement 1 when total revenues were$160,000. | |
| (a) | Calculate the firm's operatingincome (or loss) if unit selling price and variable expenses do notchange, and total revenues increase by $18,000. (Input the amount as positive value. Omit the "$"sign in your response.) |
| operating income | $ |
| (b) | Calculate the firm's operatingincome (or loss) if unit selling price and variable expenses do notchange, and total revenues decrease by $12,000. (Input the amount as positive value. Omit the "$"sign in your response.) |
| operating income | $ |
