Determine company bs operating profit for scenario

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Suppose Company B sold 10 percent more units during the year than it did according to table. Determine Company B's operating profit for this scenario. (Assume fixed operating expenses remain the same at the higher sales volume.)

 

Company B

Company C

 

Totals

Per Unit

Totals

Per Unit

Sales volume, in units

50,000

 

1,500,000

 

Sales revenue

$15,000,000

$300.00

$36,000,000

$24.00

Cost of goods sold expense

$7,500,000

$150.00

$27,000,000

$18.00

Gross margin

$7,500,000

$150.00

$9,000,000

$6.00

Variable operating expenses

$3,750,000

$75.00

$4,200,000

$2.80

Contribution margin

$3,750,000

$75.00

$4,800,000

$3.20

Fixed operating expenses

$1,950,000

$39.00

$3,000,000

$2.00

Operating profit

$1,800,000

$36.00

$1,800,000

$1.20

Reference no: EM13534420

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