Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. folsom inc., which produces and sells a single pro

Folsom Inc., which produces and sells a single product, has provided the following contribution format income...

Free

70.2K

Verified Solution

Question

Accounting

Folsom Inc., which produces and sells a single product, hasprovided the following contribution format income statement forAugust: Sales (4,600 units) $ 105,800 Variable costs 41,400Contribution margin 64,400 Fixed costs 46,000 Operating profit $18,400 Required: Redo the company’s contribution format incomestatement assuming that the company sells 4,500 units.

Answer & Explanation Solved by verified expert
3.6 Ratings (486 Votes)

Folsom's Inc
Income Statement
For the August month
(4,500 units)
Sales (4,500 units X $23) $                       1,03,500
Less: Variable expenses ($1,03,500 X 39.13%) $                           40,500
Contribution margin $                           63,000
Less: Fixed expense $                           46,000
Net operating Income $                           17,000
Workings:
(4,600 units)
Sales $                       1,05,800
Less: Variable expenses $                           41,400
Contribution margin $                           64,400
Less: Fixed expense $                           46,000
Net operating Income $                           18,400
Selling price per unit = $1,05,800/4,600 units
$                                   23
Variable cost ratio to sales = $41,400/$1,05,800
= 39.13%

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

Folsom Inc., which produces and sells a single product, hasprovided the following contribution format income statement forAugust: Sales (4,600 units) $ 105,800 Variable costs 41,400Contribution margin 64,400 Fixed costs 46,000 Operating profit $18,400 Required: Redo the company’s contribution format incomestatement assuming that the company sells 4,500 units.

Other questions asked by students

Q

Which organizational structure did Freshii? Explain what type of organizational structure Freshii uses. How does the organizational structure...

Operations Management
Q

The pKb values for the dibasic base B are pKb1 = 2.10 and pKb2 = 7.38....

Chemistry
Q

Question 2 A survey released by New Zealand Health in 2015 revealed that: • almost one in...

Psychology
Q

A heating element using nichrome connected to a 230 V supply draws an initial current...

Physics
Q

18 The velocity of viscous fluid in contact with surface is 1 Same as that...

Physics
Q

Explain how this The particles in Figure 6 undergo an elastic collision in one dimension...

Physics
Q

Point A is a vertex of a polygon Point R is the image of A...

Geometry
Q

You are given that the probability of event A is 0.232, the probability of event...

Basic Math
Q

Calculate the first second and third derivatives of y x x 4x Use symbolic notation...

Calculus
Q

Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct...

Accounting
Q

On January 1, 2021, Worcester Construction leased International Harvester equipment from Newton LeaseCorp. Newton LeaseCorp...

Accounting
Q

The current period statement of cash flows includes the following: a. $751,591 b. $133,513 c....

Accounting