Chita Corporation produces and sells a single product. The company's contribution format income statement for January appears below: Sales (5,500 units)$297,000Variable costs 165,000Contribution margin 132,000Fixed costs 105,300Operating profit$26,700Required:Redo the company's contribution format income statement assuming that the company sells 5,700 units.
What will be an ideal response?
| Sales (5,700 units × $54) | $ | 307,800 |
| Variable costs (5,700 units × $30) | 171,000 | |
| Contribution margin | 136,800 | |
| Fixed costs | 105,300 | |
| Operating profit | $ | 31,500 |
You might also like to view...
Significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's audit committee because they represent:
A. manipulation or falsification of accounting records or documents from which financial statements are prepared. B. disclosures of information that significantly contradict the auditor's going concern assumption. C. material fraud or illegal acts perpetrated by high-level management. D. deficiencies in the design of controls or failures in the operation of internal controls.
A list of the members of the population and a skip interval are used in which of the following sampling methods?
A) simple random B) systematic C) cluster D) stratified E) convenient skip
Markup can only be derived from the product's cost.
Answer the following statement true (T) or false (F)
Corona Storage Company holds goods for Durango Sales Corporation, which contracts to sell them to El Dorado Stores, Inc. The goods are to be delivered without being moved and are represented by a negotiable bill of lading. The risk of loss passes to El Dorado
A. if Corona refuses to honor the bill of lading. B. if Durango gives the bill of lading to Corona. C. if the goods are lost due to an "act of God." D. when El Dorado receives the bill of lading.