Requirement 2: Calculate the contribution margin per unit and the contribution m

Question

Requirement 2:

Calculate the contribution margin per unit and the contribution margin   ratio. (Round your answers to 2 decimal   places. Omit the "$" and "%" signs in your response.)

  Contribution margin per unit

$        

  Contribution margin ratio

%  

Requirement 3:

(a)

Calculate the firm's operating income (or loss) if the volume changed   from 15,500 units to 20,500 units. (Do not   round your intermediate calculations. Input the amount as positive value.   Omit the "$" sign in your response.)

  Operating   income

$  

(b)

Calculate the firm's operating income (or loss) if the volume changed   from 15,500 units to 7,500 units. (Do not   round your intermediate calculations. Input the amount as positive value.   Omit the "$" sign in your response.)

  Operating   income

$  

Requirement 4:

Refer to your answer to requirement 1 when total   revenues were $139,500.

(a)

Calculate the firm's operating income (or loss) if unit selling price   and variable expenses do not change, and total revenues increase by $14,500. (Do not round your intermediate calculations. Input   the amount as positive value. Round your answer to the nearest dollar amount.   Omit the "$" sign in your response.)

  Operating   income

$  

(b)

Calculate the firm's operating income (or loss) if unit selling price   and variable expenses do not change, and total revenues decrease by $10,000. (Do not round your intermediate calculations. Input   the amount as positive value. Round your answer to the nearest dollar amount.   Omit the "$" sign in your response.)

Operating income

$  

  

Requirement 2:

     

Calculate the contribution margin per unit and the contribution margin   ratio. (Round your answers to 2 decimal   places. Omit the "$" and "%" signs in your response.)

   Calculate the contribution margin per unit and the contribution margin ratio. (Round your answers to 2 decimal places. Omit the "$" and "%" signs in your response.) Calculate the firm's operating income (or loss) if the volume changed from 15,500 units to 20,500 units. (Do not round your intermediate calculations. Input the amount as positive value. Omit the "$" sign in your response.) Calculate the firm's operating income (or loss) if the volume changed from 15,500 units to 7,500 units. (Do not round your intermediate calculations. Input the amount as positive value. Omit the "$" sign in your response.) Calculate the firm's operating income (or loss) if unit selling price and variable expenses do not change, and total revenues increase by $14,500. (Do not round your intermediate calculations. Input the amount as positive value. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Calculate the firm's operating income (or loss) if unit selling price and variable expenses do not change, and total revenues decrease by $10,000. (Do not round your intermediate calculations. Input the amount as positive value. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

Explanation / Answer

2.contribution per unit=75950/15500=4.9

contribution ratio=75950/139500)*100=54.44%

3.A.operating income

sales=20500*9 =184500

Cogs=10500+2.9*20500=69950

Gross profit=114550

Operating exp.

Seling=2150+0.8*20500=18550

AAdministration=5350+0.4*20500=13550

operating income=82450

b.. Operating income

Sales=7500*9=67500

COGS=10500+2.9*7500=32250

Gross profit=35250

Operating exp.:

Selling=2150+0.8*7500=8150

Administartion=5350+0.4*7500=8350

operating income=18750

4. Revenue=139500+14500=154000

less:cogs=55450

Gross profit=98550

Less:operating expense

Selling=14550

Administrative=11550

Operating income=72450

B.revenue=139500-10000=129500

Less:Cogs=55450

gross profit=74050

LESS;

seeling exp. =14550

Administrative=11550

Operating income=47950

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