Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 11.00

Nyland Company

4.

 

The income statement for Nyland Company for 2010 appears below.

NYLAND COMPANY

Income Statement

For the Year Ended December 31, 2010

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Sales (40,000 units) $1,000,000

Variable expenses 700,000

Contribution margin 300,000

Fixed expenses 330,000

Net income (loss) $ (30,000)

 

Instructions

Answer the following independent questions and show computations using the contribution margin technique to support your answers:

1. What was the company's break-even point in sales dollars in 2010?

2. How many additional units would the company have had to sell in 2011 in order to earn net income of $45,000?

3. If the company is able to reduce variable costs by $2.50 per unit in 2011 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $35,000?

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 02:08 PM My Price 11.00

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