Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units)$120,000Variable expenses 90,000Contribution margin 30,000Fixed expenses 21,000Net operating income$9,000If sales decline to 2,900 units, the net operating income would be closest to:
A. $8,000
B. $8,700
C. $29,000
D. $1,000
Answer: A
You might also like to view...
When developing a questionnaire, if the researcher is asking him/herself if the word means what he/she intended; if it has any other meanings; if the word has more than one pronunciation; or if a simpler phrase is suggested, then he/she is probably
concerned with ________. A) avoiding leading questions B) avoiding ambiguous words C) using defining the issue D) using ordinary words
Answer the following statements true (T) or false (F)
Moonitz felt that APB Statement 4 should have been issued as an opinion rather than as a statement because departures from GAAP made in a statement did not have to be disclosed.
Grammy Girl Products (GGP) has two divisions, Bones and Biscuits, both of which usually have independence in sourcing and pricing decisions. There is an unlimited supply of raw bones. Biscuits manufactures, amongst other items, a specialty product called BisBone. The BisBone formula requires 70% bone meal and 30% cereal per lbs, plus a dollop of meat flavoring. BisBone is usually sold in 20-lbs cases and processed bones in 5-lbs packs. Cost and sales pricing data appears below.
In lieu of its normal processing, Bones sometimes grinds raw bones into bone meal (grinding costs $.05 per lbs) When bone meal is sold to Biscuits, bulk packaging is used which costs $1 per 100 lbs sack; when sold to other firms, it is packed in 50lbs containers, costing $3 each. Bones prices the container product at $180. Biscuits just received an order for 800 cases of one of its specialty products, BisBone, and is contemplating purchasing bone meal from its sister division.
Should Biscuits buy bone meal from Bones at the price calculated in Q5-9?
A. Yes, because it is $0.55 per lb cheaper than its external supplier's
B. No, because it is $0.55 per lb more costly than its external supplier's
C. Yes, because it is $0.025 per lb cheaper than its external supplier's
D. No, because it is $0.60 per lb more costly than its external supplier's
E. None of the above
With non-negotiable commercial paper, a transferee's rights are conditional
a. True b. False Indicate whether the statement is true or false