? 75% 33.3% O it is impossible to determine from the data given. QUESTION 11 Jac
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? 75% 33.3% O it is impossible to determine from the data given. QUESTION 11 Jacobbsson Organics makes industrial cement and has supplied the following data: Bags produced and sold Sales revenue Variable Manuf. Expense Fixed manufacturing expense Variable selling and adm. Expense Fixed selling & Administrative 680,000 S 4,352,000 ,972,000 730,000 782,000 412,000 Required: Do not use the tab key, only the space bar and return ke) al Prepare a contribution format income statement for the fiscal year ended January 31, 2019 bl Compute breakeven, both unit breakeven and dollar breakeven. [c] Compute the Net Operating income if the sales revenue increases 30% TTT Arial : 3(12pt) : T.:-.-. Click Save and Submit to sque and submit. Click Saue All Answers to save all answers Save All AnsExplanation / Answer
Requirement (a) - Contribution format income statement for the fiscal year ended January 31, 2019
Jacobbsson Organics
Contribution format income statement
For the fiscal year ended January 31, 2019
Particulars
Amount ($)
Amount ($)
Sales
43,52,000
Variable Expenses
Variable Manufacturing Expenses
19,72,000
Variable Selling and Administrative Expenses
782,000
(27,54,000)
Contribution margin
15,98,000
Fixed expenses:
Fixed Manufacturing Expenses
730,000
Fixed Selling and Administrative Expenses
412,000
(11,42,000)
Net Operating Income
$456,000
Requirement (b), Break-Even in units and in Dollar Amounts
Contribution per unit = Contribution margin / Units produced and sold
= $15,98,000 / 680,000
= $2.35 per unit
Contribution margin ratio = [ 15,98,000 / 43,52,000 ] x 100 = 36.72%
Break-Even in units = Total Fixed Costs / Contribution per unit
= $11,42,000 / $2.35
= 485,957 Units
Break-Even in Dollars = Break-Even in units x Selling price per unit
= 485,957 Units x $6.40 per unit
= $3,110,124.80
Requirement (c), Net Operating Income if the sales revenue increased by 30%
Jacobbsson Organics
Contribution format income statement
For the fiscal year ended January 31, 2019
Particulars
Amount ($)
Amount ($)
Sales [ $43,52,000 x 130% ]
56,57,600
Variable Expenses
Variable Manufacturing Expenses [ 19,72,000 x 130% ]
2,563,600
Variable Selling and Administrative Expenses
[ 782,000 x 130% ]
1,016,600
(3,580,200)
Contribution margin
2,077,400
Fixed expenses:
Fixed Manufacturing Expenses
730,000
Fixed Selling and Administrative Expenses
412,000
(11,42,000)
Net Operating Income
$935,400
If the sales revenue increased by 30%, then the net operating would increase to $935,400 from $456,000
Jacobbsson Organics
Contribution format income statement
For the fiscal year ended January 31, 2019
Particulars
Amount ($)
Amount ($)
Sales
43,52,000
Variable Expenses
Variable Manufacturing Expenses
19,72,000
Variable Selling and Administrative Expenses
782,000
(27,54,000)
Contribution margin
15,98,000
Fixed expenses:
Fixed Manufacturing Expenses
730,000
Fixed Selling and Administrative Expenses
412,000
(11,42,000)
Net Operating Income
$456,000
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