Maurice Tutor

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Category > Accounting Posted 11 Aug 2017 My Price 7.00

Alsatia Corporation

ollowing is Alsatia Corporation's contribution format income statement for last month:

Sales $1,400,000
Variable expenses 900,000
Contribution margin 500,000
Fixed expenses 300,000
Net operating income $200,000



The company has no beginning or ending inventories and produced and sold 10,000 units during the month.

a. What is the company's contribution margin ratio? (4 points)

b. What is the company's break-even in units? (4 points)

c. If sales increase by 100 units, by how much should net operating income increase? (4 points)

d. How many units would the company have to sell to attain target profits of $225,000? (4 points)

e. What is the company's margin of safety in dollars? (4 points)

f. What is the company's degree of operating leverage? (4 points)

Answers

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Status NEW Posted 11 Aug 2017 03:08 PM My Price 7.00

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