Reference no: EM131202674
Required:
Redo the company's contribution format income statement assuming that the company sells 3,400 units.
The following is Arkadia Corporation's contribution format income statement for last month:
Sales $1,200,000
Variable costs 800,000
Contribution Margin 400,000
Fixed costs 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.
Required:
a. What is the company's contribution margin ratio?
b. What is the company's break-even in units?
c. If sales increase by 100 units, by how much should net operating income increase?
d. How many units would the company have to sell to attain a target profit of $125,000?
e. What is the company's margin of safety in dollars?
f. What is the company's degree of operating leverage?
|
What net annual income must be received to economically
: Assuming the owner must obtain a return on the initial investment of 15%, what net annual income must be received to economically justify the project? Assume no salvage value after using the facility for 12 years.
|
|
Identify and report on recent news articles
: Identify and report on recent news articles that pertain to current trends in legal protection of intellectual property rights.
|
|
Annual interest rate implicit in this agreement
: On April 1, 2016, John Vaughn purchased appliances from the Acme Appliance Company for $1,700. In order to increase sales, Acme allows customers to pay in installments and will defer any payments for six months. John will make 18 equal monthly paymen..
|
|
What is the most memorable significant event in your life
: What is the most memorable, significant event in your life? What important lesson(s) or applications are there from this event?
|
|
What is the company contribution margin ratio
: Redo the company's contribution format income statement assuming that the company sells 3,400 units. The following is Arkadia Corporation's contribution format income statement for last month: What is the company's contribution margin ratio? What is ..
|
|
What net annual income must be received to recover capital
: If the owner requires a 15% return on his or her investment, what net annual income must be received to recover the capital investment of the project?
|
|
Write an essay on women health research
: Write an Essay on women health research- A background section that briefly discusses the important points on that condition and how men and women differ with respect to the condition.
|
|
What is the pay back period for the project
: The initial investment for a project is $4.7 million. A net hnual profit of $1.5 million is anticipated. Using a 12% desired rate of return on the investment, what is the pay back period for the project?
|
|
Statement of retained earnings and statement of cash flows
: Suppose you are analyzing the financial statements of BartelleBartelle , Inc. Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I); Statement of retained earnings (R); Balance sheet (B);..
|