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Oksana_A [137]
2 years ago
9

g: Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement

for January. Sales (4,200 units) $ 155,400 Variable expenses 100,800 Contribution margin 54,600 Fixed expenses 42,400 Net operating income $ 12,200 If the company sells 4,600 units, its total contribution margin should be closest to:
Business
1 answer:
madam [21]2 years ago
6 0

Answer:

Total contribution margin= $59,800

Explanation:

Giving the following information:

Unitary selling price= 155,400 / 4,200= $37

Unitary variable cost= 100,800 / 4,200= $24

<u>To calculate the total contribution margin, we need to use the following formula:</u>

Total contribution margin= units sold*(selling price - unitary variable cost)

Total contribution margin= 4,600*(37 - 24)

Total contribution margin= $59,800

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2 years ago
Uncollectible accounts are determined by the​ percent-of-sales method to be ​% of credit sales. How much is​ uncollectible-accou
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Answer:

$1,160

Explanation:

<em>Hie, I have attached the full question as an image below.</em>

The firm usually makes provision for certain amounts so as not to overstate their profits. This expected as it is prudent than reporting profits that might never occur. Provisions of Uncollectible accounts are examples of such amounts.

An increase in Uncollectible amount compared to the opening balance is treated as an Expense in the Income Statement whilst a decrease is treated as an Income.

For this question, we are told that Uncollectible accounts are determined by the​ percent-of-sales method to be ​4% of credit sales. Thus calculation of the 2012 uncollectible-account expense is as follows :

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Therefore,

Uncollectable Amount (2012) = Credit Sales x percent-of-sales

                                                 = $44,000 x 4%

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Conclusion :

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