Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rundle company income statement for the year ended

RUNDLE COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (7,500...

70.2K

Verified Solution

Question

Accounting

RUNDLE COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (7,500 units x $167) Cost of goods sold (7,500 units x $82) Gross margin Sales commissions (5% of sales) $1,252,500 (615,000) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (7,500 units x $4) Net income 637,500 (62,625) (85,000) (31,000) (43,000) (30,000) $ 385,875 Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Rundle will earn if sales increase by 10 percent. Complete this question by entering your answers in the tabs below. Req A Req B and C Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Rundle will earn if sales increase by 10 percent. (Round your intermediate calculations and "Operating leverage" answer to 2 decimal places. Round the "Net income" value to nearest whole dollar.) b. Operating leverage C. Net income 1.41

Answer & Explanation Solved by verified expert
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

Other questions asked by students

Q

M is the midpoint of AB and N is the midpoint of CM Find the...

Geometry
Q

What is meant by Multiple Intelligences? Do you feel the test was culturally fair? Explain. What applications...

Psychology
Q

How do I solve short-term load forecasting using Multiple Linear Regression? Can anyone provide me a...

Electrical Engineering
Q

A feedwater heater is a device to heat the feedwater before it goes into the boiler....

Mechanical Engineering
Q

Passive Transport a type of passive transport where molecules move from a region of high...

Biology
Q

In AABC we are told that a 13 4B 84 and 4C 57 Solve for...

Algebra
Q

1 Use a calculator to graph and then identify the following for the parabola y...

Algebra
Q

please asnwer as soon as possible ...

Accounting
Q

View Policies Current Attempt in Progress Doug's Custom Construction Company is considering three new projects,...

Accounting
Q

Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows:...

Accounting
Q

out as finished goods during the month, and 40,000 of equivalent units remained unfinished at...

Accounting
Q

Suppose you purchase a bond with a term of 4 years. If your purchased the...

Finance