Purpose a contribution margin format income statement

Assignment Help Financial Accounting

Reference no: EM1314913

CVP Analysis - BEP

Prepare a contribution margin format income statement; calculate break-even point: Presented here is the income statement for Edwards Co. For February:

Sales...............	$80,000
Cost of goods sold..............		$48,000
Gross profit........	$32,000
Operating expenses.............	$21,200
Operating income ...............	$10,800

Required:

a. Rearrange the preceding income statement to the contribution margin format.

b. Calculate operating income if sales volume increases by 20%. (note: Do not construct an income statement to get your answer.)

c. Calculate the amount of revenue required for Edwards to break even

Reference no: EM1314913

Questions Cloud

Desire the direction of incoming ball as positive direction : A helicopter flies at a constant altitude towing a mass M of 119 kg. The helicopter and the mass have a horizontal acceleration of 2.54 m/s^2. Ignore air resistance find the tension in the cable.

Illustrate what percentage increase in the money supply : If the objective is to keep the price level the same next yr illustrate what percentage increase in the money supply should the central bank plan

Computation of the price of the forward contract : Computation of the price of the forward contract and position and what are the forward price and the value of the short position in the forward contract

Significant mean difference : To test whether there is significant mean difference between two groups using independent sample t test.

Purpose a contribution margin format income statement : Purpose a contribution margin format income statement; calculate break-even point: Presented here is the income statement for Edwards Co. For February

Impact of subsidy on consumers : Demonstrate that removing the subsidy will make consumers worse off but will nevertheless improve society's economic welfare.

What is the x coordinate of particle : The minimum stopping distance for a car travelling at a speed of 30 {rm m/s} is 60 {rm m}, including the distance travelled during the driver's reaction time of 0.54 {rm s}.

Bond returns is consistent with this portfolio standard : Illustrate what correlation between the stocks also bond returns is consistent with this portfolio standard deviation.

Determine the amount of revenue : Calculate operating income if sales volume increases by 20% and Determine the amount of revenue required for Edwards to break even

User Account

All Pages