User Account

All Pages

Prepare a contribution format income statement

Assignment Help Accounting Basics
Reference no: EM132069502

Question - A company's contribution format income statement for the most recent month is given below:

Sales (13,500 units at $20 per unit) $270,000

Variable costs $135.000

Contribution margin $135,000

Fixed costs $90,000

Net operating income $45,000

The president is convinced that 20% reduction in price, along with a $50,000 advertising surge will cause unite sales to triple.

1- Prepare a contribution format income statement that reflects this proposal.

2- Reconcile (using specific incremental numbers) the difference in the net operating income compared to the original scenario. I'm not looking for line-by- line differences in the two income statements?

Reference no: EM132069502

Questions Cloud

Provide a basis for making sound procurement decisions : Provide a basis for making sound procurement decisions.
Assignment on organisational mergers : MERGERS DON'T ALWAYS LEAD TO CULTURE CLASHES A lot of mergers lead to culture clashes and, ultimately, failure.
Did you personally have to deal with stereotypical beliefs : Identify an experience where you had to assess the needs, interests, and goals of a patient with an ethnic background, different from yours.
Discuss process of team management and leadership : With a society that is so diverse in its own nature, issues pertaining to cultural diversity are bound to occur in the process of team management.
Prepare a contribution format income statement : The president is convinced that 20% reduction in price, Prepare a contribution format income statement that reflects this proposal
Determine maximum deduction allowable for medical expense : They expect to receive an additional reimbursement of $1,000 in January 2015. Determine the maximum deduction allowable for medical expenses in 2014
Impact of technology based accounting software : BUS707 – Applied Business Research - king's own institute - The impact of technology based accounting software on Accountant's performance; a case study
Assignment-data due diligence project : You are to use the CustomerDataset file as the basis for this assignment. Your dataset contains a sample of 5,000 customers of a telecommunications company
Calculate the estimated variable cost of sales per unit : The following information is available for a company's cost of sales over the last five months. Using the high-low method, the estimated variable cost of sales

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd