MOHD AFIQ BIN MOHD NAWI

890606-03-5927

EXERSICE 6-1

1) the sales volume increase 100 unit

TOTAL UNIT
Sales (10100 unit) $353500 $35.00
Less variable expenses $202000 $20.00
Contribution margin $151500 $15.00
Less fixed expenses $135000
Net operating income $16500

2) the sales volume decrease 100 unit

TOTAL UNIT
Sales (9900 unit) $346500 $35.00
Less variable expenses $198000 $20.00
Contribution margin $148500 $15.00
Less fixed expenses $135000
Net operating income $13500

3) the sales volume is 9000 unit

TOTAL UNIT
Sales (9000 unit) $315000 $35.00
Less variable expenses $180000 $20.00
Contribution margin $135000 $15.00
Less fixed expenses $135000
Net operating income -
 EXERCISE 6-5

1) sales = variable expenses + fixed expenses + profit

$15Q=$12Q + $4200
3Q=$4200
Q=$4200
3
Q=$1400
2) 15X = 12X + $4200 + 0
X = 0.8X+$4200 + 0
0.2X = $4200
X = $4200
0.2
X = $21000
Contribution margin = fixed expenses
Unit contribution margin
= $4200
0.2
=$21000
Contribution margin ratio= 0.2
$15
=1.33%
3)sales = variable expenses + fixed expenses + profit
15Q=12Q + $4200
3Q=$4200
Q=$4200
3
Q=$21000

fixed expenses
contribution margin per unit
=$4200
$15
=280 unit

4)break –even point in unit sales =fixed expenses

 Unit contribution margin
=$4200
3 per unit
=1400 unit
Beak –even point in dollar sales = fixed expenses
Contribution margin ratio
=$4200
0.2
=$21000