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Social Science Clinic => Accounting => Topic started by: codyclark on Jan 5, 2020

Title: Sandbox Company has a predicted operating income of $34,800 . Their total variable expenses are ...
Post by: codyclark on Jan 5, 2020

Sandbox Company has a predicted operating income of $34,800 .  Their total variable expenses are $28,000 and their total fixed expenses are $22,800.  They have a unit contribution margin of $12.
1.   Calculate the required sales in units to achieve the predicted operating income.

2.	Calculate the required sales in units to achieve the predicted operating income if the company's

fixed expenses double.

Title: Sandbox Company has a predicted operating income of $34,800 . Their total variable expenses are ...
Post by: mjbamaung on Jan 5, 2020

1.

Total fixed costs	$22,800
Predicted operating income	$34,800
​	$57,600
Divide by	Divide by
Unit contribution margin	$12.00
Unit sales needed to reach target income	4,800

2.

New fixed costs	$45,600
Predicted operating income	$34,800
​	$80,400
Divide by	Divide by
Unit contribution margin	$12.00
Unit sales needed to reach target income at new level of fixed costs	6,700

Title: Re: Sandbox Company has a predicted operating income of $34,800 . Their total variable expenses are
Post by: StephanieK09 on Jan 26, 2020

Thank you1

Title: Re: Sandbox Company has a predicted operating income of $34,800 . Their total variable expenses are
Post by: Celeste on Jan 26, 2020

Thanks :)