Nipissing University

Davison Co. prepared the following contribution format income statement based on a sales volume of 10,000 units (the relevant range of production is 5,000 units to 15,000 units): Sales $ 260,000 Variable expenses 156,000 Contribution margin 104,000 Fixed expenses 78,000 Net operating income $ 26,000 Required: What is the break-even point in unit sales?

Davison Co. prepared the following contribution format income statement based on a sales volume of 10,000 units (the relevant range of production is 5,000 units to 15,000 units): Sales $ 270,000 Variable expenses 162,000 Contribution margin 108,000 Fixed expenses 81,000 Net operating income $ 27,000 Required: If the variable cost per unit increased by $1.70, spending on advertising increased by $17,800, and unit sales increased by 2,500 units, what would be the net operating income?

The budgeted selling price per unit is $80. Budgeted unit sales for June, July, August, and September are 9,600, 10,600, 12,600, and 15,600 units, respectively. All sales are on credit. 60% of credit sales are collected in the month of the sale and 40% in the following month. The ending finished goods inventory equals 20% of the following month’s unit sales. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 kg of raw materials. The raw materials cost $2.00 per kilogram. 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labour wage rate is $20 per hour. Each unit of finished goods requires two direct labour-hours. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $63,000. According to the production budget, how many units should be produced in July?

The budgeted selling price per unit is $80. Budgeted unit sales for June, July, August, and September are 10,200, 11,200, 13,200, and 16,200 units, respectively. All sales are on credit. 60% of credit sales are collected in the month of the sale and 40% in the following month. The ending finished goods inventory equals 20% of the following month’s unit sales. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 kg of raw materials. The raw materials cost $2.00 per kilogram. 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labour wage rate is $20 per hour. Each unit of finished goods requires two direct labour-hours. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $66,000. What is the accounts receivable balance at the end of July?

Victoria Inc. makes one product and it provided the following information to help prepare the master budget for its first four months of operations: The budgeted selling price per unit is $80. Budgeted unit sales for June, July, August, and September are 10,200, 11,200, 13,200, and 16,200 units, respectively. All sales are on credit. 60% of credit sales are collected in the month of the sale and 40% in the following month. The ending finished goods inventory equals 20% of the following month’s unit sales. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 kg of raw materials. The raw materials cost $2.00 per kilogram. 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labour wage rate is $20 per hour. Each unit of finished goods requires two direct labour-hours. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $66,000. What are the expected cash collections for July?

Davison Co. prepared the following contribution format income statement based on a sales volume of 10,000 units (the relevant range of production is 5,000 units to 15,000 units): Sales - $270,000 Variable expenses - 162,000 Contribution margin - 108,000 Fixed expenses - 81,000 Net operating income - 27,000 Required: If the variable cost per unit increased by $1.70, spending on advertising increased by $17,800, and unit sales increased by 2,500 units, what would be the net operating income? (Do not round intermediate calculations.)