Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the company's contribution format income statement

The company's contribution format income statement for 2020 is given below: ...

80.2K

Verified Solution

Question

Accounting

The company's contribution format income statement for 2020 is given below:

$

Sales (20,000 phones)

1,200,000

Variable expenses

900,000

Contribution margin

300,000

Fixed expenses

240,000

Net operating income

$ 60,000

Refer to the original income statement for 2020 above. In an effort to increase sales and profits, management is considering the use of a higher quality speaker in the phones. With the higher quality speaker, the variable costs would be $3 more per unit, but management could eliminate one quality inspector who is paid a salary of $30,000 per year. The sales manager estimates that the higher quality speaker would increase annual sales by at least 20%.

Required:

You can type your answers and working straight into the box below, or you can type your answers into a document or a spreadsheet, and copy and paste into the box below, or you may handwrite the answers, take a photo and upload into the File uploading box at the bottom of this screen (scroll down).

(c) Assuming that the higher quality speaker is used, prepare a projected contribution format income statement for next year. (You can use a layout similar to the statement above.)

Answer & Explanation Solved by verified expert
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

Other questions asked by students

Q

In an International Mass Retail Association survey of 1006 U.S. households, 324 of the households said...

Statistics
Q

A major issue facing many organizations today is whether they can identify the "right" talent for...

General Management
Q

Assertion A The Coulomb force between two points charges depend upon the dielectric constant of...

Physics
Q

Find the value of x If necessary you may learn what the markings on a...

Geometry
Q

Construct a stem and leaf plot for the data The amount in dollars spent by...

Basic Math
Q

A local bank offers an investment option with a simple interest rate of 3.60% per...

Basic Math
Q

Solve the quadratic equation by completing the square x 10x 2 0 Choose the appropriate...

Algebra
Q

Sketch the graph that possesses the characteristics listed below 4 0 f 4 0 f...

Algebra
Q

TeamB Company signs a lease agreement dated January 1, 2019, that provides for it to...

Accounting
Q

Neron Company reported the following. Sales $2,110,000 Cost of...

Accounting
Q

Although professionals are not guarantors of the accuracy of their work or that the advice...

Accounting
Q

Bright Inc. will be receiving $5,300 at the end of every month for the next...

Accounting