Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. decaprio inc. produces and sells a single product.

Decaprio Inc. produces and sells a single product. The company has provided its contribution format income...

Free

70.2K

Verified Solution

Question

Accounting

Decaprio Inc. produces and sells a single product. The companyhas provided its contribution format income statement for June.

Sales(5,500 units)$192,500
Variable expenses82,500
Contribution margin110,000
Fixed expenses86,500
Netoperating income$23,500

If the company sells 5,700 units, its net operating incomeshould be closest to: (Do notround intermediate calculations.)

Answer & Explanation Solved by verified expert
3.7 Ratings (700 Votes)

Step-1: Calculation of Sale, Variable cost and ccontrbution margin per unit
Total Unit Level Per Unit
a b a/b
Sales $       1,92,500 5500 $    35.00
Variable Expense $           82,500 5500 $    15.00
Contribution Margin $       1,10,000 5500 $    20.00
Step-2:Calculation of Net Operating income at 5.700 units level
Per Unit Total
Sales (5.700 Units) $    35.00 $       1,99,500
Variable Expense $    15.00 $           85,500
Contribution Margin $    20.00 $       1,14,000
Fixed Expense $           86,500
Net Operating Income $           27,500
Thus,
At 5,700 units sold, Net Operating income should be $ 27,500

Fixed Expense does not change due to change in volume.Variable Expense per unit is remain same.
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Decaprio Inc. produces and sells a single product. The companyhas provided its contribution format income statement for June.Sales(5,500 units)$192,500Variable expenses82,500Contribution margin110,000Fixed expenses86,500Netoperating income$23,500If the company sells 5,700 units, its net operating incomeshould be closest to: (Do notround intermediate calculations.)

Other questions asked by students

Q

Radioactivity lab using equation age=1/k ln(1+D/P) k=decay constant; D= # of daughter atoms in sample (beans);...

Chemistry
Q

Consider the function ?: (?1,1) × (?1,1) ? ? given by ?(?, ?) = sin(?? +...

Advance Math
Q

On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that...

Accounting
Q

Directions Given the two sets determine if one set is a subset of the other...

Statistics
Q

Find the following values for f x sin Be sure your computing device is set...

Calculus
Q

Based on the following data, what is the amount of current assets? Accounts payable $64500...

Accounting
Q

Why is it important to know the taxpayers age and eyesight?

Accounting
Q

You have been engaged to review the financial statements of Bonita Corporation, In the course...

Accounting
Q

Gavin invested $46,000 in the Jason and Kelly Partnership for ownership equity of $46,000. Prior...

Accounting
Q

Exercise 12-3 (Algo) Indirect: Reporting cash flows from operations LO P2 Arundel Company disclosed the...

Accounting
Q

Bilbo Baggins has just purchased a home and taken out a $400,000 mortgage. The mortgage...

Finance
Q

10. Bimba Co. has a beta of 1.3 The expected market return is 14%, and...

Finance