Spencer Company's most recent monthly contribution format income statement is given below:
The company sells its only product for $10 per unit.There were no beginning or ending inventories.
Required:
a)What is the company's contribution margin ratio? b)What are total sales in dollars at the break-even point?
c)What are total variable expenses at the break-even point?
d)If unit sales were increased by 10% and fixed expenses were reduced by $2,000,what would be the company's expected operating income? (Prepare a new income statement. )

Question

Spencer Company's most recent monthly contribution format income statement is given below:  
The company sells its only product for $10 per unit.There were no beginning or ending inventories.
Required:
a)What is the company's contribution margin ratio? b)What are total sales in dollars at the break-even point?
c)What are total variable expenses at the break-even point?
d)If unit sales were increased by 10% and fixed expenses were reduced by $2,000,what would be the company's expected operating income? (Prepare a new income statement. )

Quizplus · Accepted Answer

The Answer of Spencer Company's most recent monthly contribution format income statement is given below:  
The company sells its only product for $10 per unit.There were no beginning or ending inventories.
Required:
a)What is the company's contribution margin ratio? b)What are total sales in dollars at the break-even point?
c)What are total variable expenses at the break-even point?
d)If unit sales were increased by 10% and fixed expenses were reduced by $2,000,what would be the company's expected operating income? (Prepare a new income statement. )

Spencer Company's Most Recent Monthly Contribution Format Income Statement Is