The contribution format income statement for Huerra Company for last year is given below: ...
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Accounting
The contribution format income statement for Huerra Company for last year is given below:
| Total | Unit | ||||
| Sales | $ | 1,000,000 | $ | 50.00 | |
| Variable expenses | 600,000 | 30.00 | |||
| Contribution margin | 400,000 | 20.00 | |||
| Fixed expenses | 318,000 | 15.90 | |||
| Net operating income | 82,000 | 4.10 | |||
| Income taxes @ 40% | 32,800 | 1.64 | |||
| Net income | $ | 49,200 | $ | 2.46 | |
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| |||||
The company had average operating assets of $502,000 during the year.
5. Sales are increased by 15%; operating assets remain unchanged. (Round your answers to 2 decimal places.)
6. Obsolete inventory carried on the books at a cost of $20,000 is scrapped and written off as a loss. (Round your answers to 2 decimal places.)
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