Income statement for last month

Assignment Help Financial Accounting

Reference no: EM13948514

The following is Ark Corporation's contribution format income statement for last month:

Sales $1,200,000

Variable Expenses 800,000

Contribution Margin 400,000

Fixed Expenses 300,000

Net Operating income $100,000

The company has no beginning or ending inventories and produced and sold 20,000 units during the month.

What is the company's contribution margin ratio?
What is the company's break-even in units?
If sales increased by 100 units, by how much should net operating income increase?
How many units would the company have to sell to attain a target profit of $125,000?
What is the company's margin of safety?
What is the company's degree of operating leverage?

Reference no: EM13948514

Questions Cloud

Donalds dresses experienced : Donalds Dresses (DD) experienced the following events in 2014 and uses the perpetual inventory method. For each event, show how cash, the balance sheet (A=L+E) and the income statement (R-E=NI) are affected.

Manufactures bamboo picture frames : manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11.00 per hour.

Basic inventory data : Basic inventory data for June are presented for a business that employs the lower of cost or market basis of inventory valuation.

Scope management plan and change request form : In scope-out scope items: In scope items are list of requirements that are going to be implemented as part of this system - Create a time-phased budget for your example project using bottom-up estimating. As you allocate resources to the activity y..

Income statement for last month : Ark Corporation's contribution format income statement for last month

Prepare all journal entries : Prepare all journal entries, consistent with GAAP, including budgetary and encumbrance entries that the department should make in 2015.

Describe the problem and present the data : The financial team has assembled to review labor data for a new engine. Designed for efficiency, the new engine's power to weight ratio and low drag geometry promised great things. Dashiell kicked off the meeting. "Folks, this is radical. For the ..

Convenient way to document a system events : A use case is a convenient way to document a system's events. It serves as a kind of table of contents for the business events and activities that must be supported by the system. It will be used to identify how the system will be used and which a..

Did the business show a negative cash balance for june : Did the business show a negative cash balance for June? Assuming that the owner has no hope of establishing a line of credit for the business, what recommendations would you give the owner for dealing with a negative cash balance?

User Account

All Pages