X hits on this document

PDF document

BA213_Answer.key.Review.Test2.pdf - page 3 / 22

163 views

0 shares

0 downloads

0 comments

3 / 22

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:

  • a.

    $54,600

  • B.

    $59,800

  • c.

    $69,400

  • d.

    $13,362

Current contribution margin

Current sales in units = Contribution margin per unit

$54,600

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:

  • a.

    $27,077

  • b.

    $49,900

  • C.

    $36,700

  • d.

    $25,900

Current sales dollars

Current sales in units = Sales price per unit

$528,000

8,800 = $60 sales price per unit

Current variable expenses

Current sales in units = Variable expense per unit

$290,400

8,800 = $33 variable expense per unit

Document info
Document views163
Page views185
Page last viewedThu Dec 08 21:23:55 UTC 2016
Pages22
Paragraphs452
Words2992

Comments