Contribution Margin and Format Income Statement
Question 1 1.
The following is Addison Corporation's contribution format income statement for last month:
Sales $1,000,000
Less: Variable Expenses $ 700,000
Contribution Margin $ 300,000
Less: Fixed Expenses $ 180,000
Operating Income $ 120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.
What is the company's margin of safety in dollars?
$400 000
10 points
Question 2 1.
The following is Addison Corporation's contribution format income statement for last month:
Sales $1,000,000
Less: Variable Expenses $ 700,000
Contribution Margin $ 300,000
Less: Fixed Expenses $ 180,000
Operating Income $ 120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.
What is the company's contribution margin ratio?
30%
10 points
Question 3 1.
The following is last month's contribution format income statement: Sales (10,000 Units) $1,200,000
Less: Variable Expenses $ 800,000
Contribution Margin $ 400,000
Less: Fixed Expenses $ 240,000
Operating Income $ 160,000
What is the company's break-even sales in units?
6000 units
Question 4 1.
The following is Addison Corporation's contribution format income statement for last month:
Sales $1,000,000
Less: Variable Expenses $ 700,000
Contribution Margin $ 300,000
Less: Fixed Expenses $ 180,000
Operating Income $ 120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. How many units would the company have to sell to attain target operating profits of $150,000 |
22000 units
10 points
The following is Addison Corporation's contribution format income statement for last month:
Sales $1,000,000
Less: Variable Expenses $ 700,000
Contribution Margin $ 300,000
Less: Fixed Expenses $ 180,000
Operating Income $ 120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.
What is the company's margin of safety in dollars?
$400 000
10 points
Question 2 1.
The following is Addison Corporation's contribution format income statement for last month:
Sales $1,000,000
Less: Variable Expenses $ 700,000
Contribution Margin $ 300,000
Less: Fixed Expenses $ 180,000
Operating Income $ 120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.
What is the company's contribution margin ratio?
30%
10 points
Question 3 1.
The following is last month's contribution format income statement: Sales (10,000 Units) $1,200,000
Less: Variable Expenses $ 800,000
Contribution Margin $ 400,000
Less: Fixed Expenses $ 240,000
Operating Income $ 160,000
What is the company's break-even sales in units?
6000 units
Question 4 1.
The following is Addison Corporation's contribution format income statement for last month:
Sales $1,000,000
Less: Variable Expenses $ 700,000
Contribution Margin $ 300,000
Less: Fixed Expenses $ 180,000
Operating Income $ 120,000
The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. How many units would the company have to sell to attain target operating profits of $150,000 |
22000 units
10 points