Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. decaprio inc. produces and sells a single product.

Decaprio Inc. produces and sells a single product. The company has provided its contribution format income...

Free

70.2K

Verified Solution

Question

Accounting

Decaprio Inc. produces and sells a single product. The companyhas provided its contribution format income statement for June.

Sales(5,500 units)$192,500
Variable expenses82,500
Contribution margin110,000
Fixed expenses86,500
Netoperating income$23,500

If the company sells 5,700 units, its net operating incomeshould be closest to: (Do notround intermediate calculations.)

Answer & Explanation Solved by verified expert
3.7 Ratings (700 Votes)

Step-1: Calculation of Sale, Variable cost and ccontrbution margin per unit
Total Unit Level Per Unit
a b a/b
Sales $       1,92,500 5500 $    35.00
Variable Expense $           82,500 5500 $    15.00
Contribution Margin $       1,10,000 5500 $    20.00
Step-2:Calculation of Net Operating income at 5.700 units level
Per Unit Total
Sales (5.700 Units) $    35.00 $       1,99,500
Variable Expense $    15.00 $           85,500
Contribution Margin $    20.00 $       1,14,000
Fixed Expense $           86,500
Net Operating Income $           27,500
Thus,
At 5,700 units sold, Net Operating income should be $ 27,500

Fixed Expense does not change due to change in volume.Variable Expense per unit is remain same.
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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Decaprio Inc. produces and sells a single product. The companyhas provided its contribution format income statement for June.Sales(5,500 units)$192,500Variable expenses82,500Contribution margin110,000Fixed expenses86,500Netoperating income$23,500If the company sells 5,700 units, its net operating incomeshould be closest to: (Do notround intermediate calculations.)

Other questions asked by students

Q

Boxer Corporation has consistently used thepercentage-of-completion method of recognizing income. In 2018,Boxer started work...Boxer...

Accounting
Q

In cryptography, a Caesar cipher, also known as Caesar's cipher, the shift cipher, Caesar's code or Caesar shift,...

Programming
Q

WRITE An essay (or 3 small paragraphs ABOUT STUDENTS’ GOALS FOR English 28 COURSE BASED ON THE...

Psychology
Q

Determine the temperature rise in the specimen for each case in Problem 6.75 (Open-die forging of...

Mechanical Engineering
Q

8 Locate the centre of mass of arrangement shown in figure The three rods are...

Physics
Q

7 10 pts Solve a logarithmic equation Don t forget to show your work Solve...

Basic Math
Q

What values of w and x make AQRS ACBD Q R 11 X 9w X...

Calculus
Q

O g x f x a O g x f x b Question 5 12...

Algebra
Q

The Riteway Ad Agency provides cars for its sales staff. In the past, the company...

Accounting
Q

Saved Help Save & During the current month, a company that uses job order costing...

Accounting
Q

John and Sandy Ferguson got married eight years ago and have a seven-year old daughter...

Accounting
Q

Kuhn Co. is considering a new project that will require an initial investment of $20...

Finance