4. Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.
If the company sells 4,600 units, its total contribution margin should be closest to:
Current contribution margin
Current sales in units = Contribution margin per unit
4,200 = $13 contribution margin per unit
If 4,600 units are sold, the total contribution margin will be 4,600 × $13, or $59,800.
5. Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.
If the company sells 9,200 units, its net operating income should be closest to:
Current sales dollars
Current sales in units = Sales price per unit
8,800 = $60 sales price per unit
Current variable expenses
Current sales in units = Variable expense per unit
8,800 = $33 variable expense per unit