Scribd Logo
Upload

Welcome to Scribd!

  • 7 views

    Chapter 5 Assignment

    Uploaded by

    Genner Raz
    The document provides examples of how to calculate contribution margin per unit, contribution margin ratio, variable expense ratio, and the increase in net operating income given an increase in unit sales. It also shows an example of calculating net operating income if sales decline to 900 units.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Chapter 5 Assignment

    Uploaded by

    Genner Raz
    7 views1 page
    The document provides examples of how to calculate contribution margin per unit, contribution margin ratio, variable expense ratio, and the increase in net operating income given an increase in unit sales. It also shows an example of calculating net operating income if sales decline to 900 units.

    Original Title

    CHAPTER 5 ASSIGNMENT

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides examples of how to calculate contribution margin per unit, contribution margin ratio, variable expense ratio, and the increase in net operating income given an increase in unit sales. It also shows an example of calculating net operating income if sales decline to 900 units.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    7 views1 page

    Chapter 5 Assignment

    Uploaded by

    Genner Raz
    The document provides examples of how to calculate contribution margin per unit, contribution margin ratio, variable expense ratio, and the increase in net operating income given an increase in unit sales. It also shows an example of calculating net operating income if sales decline to 900 units.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    CHAPTER 5 ASSIGNMENT

    1. The contribution margin per unit is calculated as follows:

    Total contribution margin (a) $8,000


    Total units sold (b) 1,000 units
    Contribution margin per unit (a) ÷ (b) $8.00 per unit

    2. The contribution margin ratio is calculated as follows:

    Total contribution margin (a) $8,000


    Total sales (b) $20,000
    Contribution margin ratio (a) ÷ (b) 40%

    3. The variable expense ratio is calculated as follows:

    Total variable expenses (a) $12,000


    Total sales (b) $20,000
    Variable expense ratio (a) ÷ (b) 60%

    4. The increase in net operating is calculated as follows:

    Contribution margin per unit (a) $8.00 per unit


    Increase in unit sales (b) 1 unit
    Increase in net operating income (a) × (b) $8.00

    5. If sales decline to 900 units, the net operating would be computed as follows:

    Total Per Unit

    Sales (900 units) $18,000 $20.00


    Variable expenses 10,800 12.00
    Contribution margin 7,200 $ 8.00
    Fixed expenses 6,000
    Net operating income $ 1,200

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy