Short Answer Problem 1: Gonyo Inc., which produces and sells a single product, h

Question

Short Answer Problem 1: Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December: Sales (3,200 units) $252,800 Variable expenses 118.400 Contribution margin 134,400 Fixed expenses Net operating income $20,800 Assume the company now has sales level of 3,400 units Required: 21. Assuming the new sales level of 3,400 unit, compute Total Sales 22. Assuming the new sales level of 3,400 unit, compute Total Variable Costs 23. Assuming the new sales level of 3,400 unit, compute Total Contribution Margin 24. Assuming the new sales level of 3,400 unit, compute Total Fixed Costs 25. Assuming the new sales level of 3,400 unit, compute Net Operating Income

Explanation / Answer

Contribution Margin Income Statement Sales (3400 units @79) 268600 Less: Variable cost (3400 units @ 37) 125800 Contribution margin   142800 Less: Fixed expense 113600 Net income 29200 Req 21: Total sales at 3400 units: $ 268600 Req 22: Total variable cost at 3400 units: $ 125800 Rreq 23: Total contribution margin at 3400 units: $ 142800 Req 24: Total fixed cost at 3400 units: $ 113600 Rreq 25: Net income at 3400 units: $ 29200

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