Jasin Company projected operating income (based on sales of 450,000 units) for the coming year as follows: Table 4: Operating Income Statement RM 11,700,000 8,190,000 3,510,000 2.254.200 1,255,800 Details Sales Total variable cost Contribution margin Total fixed cost Operating income
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- Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: It is expected that 21,875 units will be sold at a price of 160 a unit. Maximum sales within the relevant range are 27,000 units. Instructions Prepare an estimated income statement for 20Y3. What is the expected contribution margin ratio? Determine the break-even sales in units and dollars. Construct a cost-volume-profit chart indicating the break-even sales. What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage. It is expected that 12,000 units will be sold a price of 240 a unit. Maximum sales within the relevant range are 18,000 units. Instructions Prepare an estimated income statement for 20Y7. What is the expected contribution margin ratio? Determine the break-even sales in units and dollars. Construct a cost-volume-profit chart indicating the break-even sales. What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage.A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019Jellico Inc.’s projected operating income (based on sales of 450,000 units) for the coming year isas follows:TotalSales $11,700,000Total variable cost 8,190,000Contribution margin $ 3,510,000Total fixed cost 2,254,200Operating income $ 1,255,800Required:1. Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution margin ratio, (d) break-even point in units, and (e) break-even point in sales dollars.2. How many units must be sold to earn operating income of $296,400?3. Compute the additional operating income that Jellico would earn if sales were $50,000 morethan expected.4. For the projected level of sales, compute the margin of safety in units, and then in salesdollars.5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.)6. Compute the new operating income if sales are 10% higher than expected.
- Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following a) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as amount and as percentage) OMR Sales (actual) Total fixed cost Selling price per unit Variable cost per unit 800,000 450,000 275 125The following income statement applies to Finch Company for the current year: Income Statement Sales revenue (480 units × $30) $ 14,400 Variable cost (480 units × $15) (7,200 ) Contribution margin 7,200 Fixed cost (4,000 ) Net income $ 3,200 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that FinchQuestion 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following а) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as amount and as percentage) OMR Sales (actual) 800,000 Total fixed cost 450,000 Selling price per unit Variable cost per unit 275 125
- Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income taxQuestion 1: Muscat Company has the financial information given in the table for the year ended on 30 September 2021. It is assumed that volume of production and volume of sales are equal. According to the information given, you are required to calculate the following; a) Break-even point (in units and amount) b) PV ratio c) Margin of Safety (as percentage) amount and as OMR Sales (actual) 1,600,000 Total fixed cost 900,000 Selling price per unit 375 Variable cost per unit 225Blossom Company has the following information available for September 2022. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $400 $320 $24,000 600
- Assume a company reported the following results: Sales $ 400,e00 Variable expenses Contribution margin Fixed expenses 260,e00 140,000 96,e00 Net operating income $ 44,000 Average operating assets $ 350, 000 The margin is closest to: Muitiple Choice 12.9%. 35.0%. 114.3%.The following income statement applies to Franklin Company for the current year: Income Statement Sales revenue (410 units × $31) Variable cost (410 units × $16) Contribution margin Fixed cost Net income Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Franklin Company will earn If It experiences a 10 percent increase in revenue. The sales price per unit is not affected. c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements. Req A and B Complete this question by entering your answers in the tabs below. Req C1 a. Operating leverage b. Net income $ $12,710 (6,560) 6,150 (4,100) $2,050 > Answer is complete but not entirely correct. Req C2 a. Use the…Question 1: Salalah Company has the financial information given in the table for the year ended on 31 December 2020. Calculate the following Break-even point (in units and amount) PV ratio Margin of Safety (as amount and as percentage) OMR Sales (actual) 800,000 Total fixed cost 450,000 Selling price per unit 275 Variable cost per unit 125