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Managerial Accounting - 1
Managerial Accounting - 1
Managerial Accounting - 1
Melford Company sold 26,800 units last year at $16.00 each. Variable cost was $11.50, and
total
fixed cost was $126,000.
Required:
1. Prepare an income statement for Melford for last year.
Melford Company
Contribution Income Statement
For the End of the Year
3. Calculate the units that Melford must sell to earn operating income of $12,150 this year.
Profit = Unit CM x Q – Fixed Cost
$12,150 = $4.50 x Q - $126,000
$138,150 = $4.50Q
30,700 = Q
Untuk mendapatkan operating income $12,150 di tahun ini, maka Melford Company
harus menjual 30,700 unit.
Exercise 4-32 Multiple-Product Breakeven
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a
basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products
sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows:
DVDs Equipment
Sets
Price $ 8 $ 25
Variable cost per unit 4 15
(Note: Round all dollar answers to the nearest dollar. Round fractional answers to two
decimal places.)
Required:
1. Compute the break-even sales dollars.
Medina Company
Projected Income Statement
For the Coming Year
3. Compute the degree of operating leverage (Note: Round answer to two decimal places).
DOL = _Contribution Margin_ = 756,000 = 33,33
Net Operating Income 22,680
4. Compute the new operating income if sales are 20% higher than expected. (Note: Round
answer to the nearest dollar.)
Percent increase in sales 20%
DOL _33,33_x
Increase in profit 666,6%
Medina Company
Projected Income Statement
For the Coming Year