A company that produces and sells a single product

Reference no: EM131022887

Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November.

Sales (5,700 units)..............	$319,200
Variable expenses...............	188,100
Contribution margin.............	131,100
Fixed expenses...................	106,500
Net operating income..........	$ 24,600

If the company sells 5,300 units instead of 5,700, its net operating income would then amount to:

1.	$24,600
2.	$2,200
3.	$22,874
4.	$15,400

Reference no: EM131022887

Questions Cloud

Differences in financial reporting and its regulation : Discuss the causes of differences in financial reporting and its regulation (giving relevant examples of the effects) between your own country and Japan.

Predict the direction in which chinese accounting : Which factors could have been used at the beginning of the 1990s to predict the direction in which Chinese accounting would develop?

What problem might result from reinstituting capital control : The global financial crisis of 2007-2009 led some economists and policymakers to suggest the reinstitution of capital controls-or limits on the flow of foreign exchange and financial investments across countries-which existed in many European coun..

Uk standards for individual companies with ifrs : Why has the ASB in the UK decided to converge (partially but not completely) UK standards for individual companies with IFRS?

A company that produces and sells a single product : Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November.

Accounting rules relating to individual financial statements : ‘The UK accountancy profession no longer has any influence on the accounting rules relating to individual financial statements.' Discuss.

Calculate the initial value of capital inflows for economy : Calculate the initial value of government savings, Sg. Calculate the initial value of capital inflows for this economy. Calculate the equilibrium interest rate, the equilibrium level of investment spending, and the equilibrium level of private savin..

Why would joining the euro area have these effects : The report also noted that: "Joining the euro area would significantly lower the volatility of traded good prices and lower overall inflation volatility as nearly half of Iceland's external trade is with countries in the euro area or pegged to it."..

Keeping of accounting records : Is it useful to regulate, as for example in France, the keeping of accounting records, as well as the preparation of financial statements?

User Account

All Pages