SlideShare a Scribd company logo
1 of 1
Download to read offline
The following is Allison Corporation's contribution format income statement for last month:
Sales $800,000 Less: variable expenses 400,000 Contribution margin 400,000 Less: fixed
expenses 300,000 Operating income $100,000 The company has no beginning or ending
inventories. The company produced and sold 20,000 units last month. 1. How many units would
the company have to sell to attain after-tax profits of $72,000, assuming it is subject to a 40%
income tax rate? 2. What is the company's margin of safety percentage? 3. What is the
company's degree of operating leverage?

More Related Content

More from adwitanokiastore

The end of bureaucracy Introduction Haier, based in Qingdao, Chi.pdf
The end of bureaucracy Introduction Haier, based in Qingdao, Chi.pdfThe end of bureaucracy Introduction Haier, based in Qingdao, Chi.pdf
The end of bureaucracy Introduction Haier, based in Qingdao, Chi.pdf
adwitanokiastore
 
The data set below summarizes F2 numbers from an F1 cross arising .pdf
The data set below summarizes F2 numbers from an F1 cross arising .pdfThe data set below summarizes F2 numbers from an F1 cross arising .pdf
The data set below summarizes F2 numbers from an F1 cross arising .pdf
adwitanokiastore
 
Thanks so much for your help. Review the GameService class. Noti.pdf
Thanks so much for your help. Review the GameService class. Noti.pdfThanks so much for your help. Review the GameService class. Noti.pdf
Thanks so much for your help. Review the GameService class. Noti.pdf
adwitanokiastore
 
Tek bir bamsz deiken i�eren bir regresyon modeline ________ de.pdf
Tek bir bamsz deiken i�eren bir regresyon modeline ________ de.pdfTek bir bamsz deiken i�eren bir regresyon modeline ________ de.pdf
Tek bir bamsz deiken i�eren bir regresyon modeline ________ de.pdf
adwitanokiastore
 
te Phone Corporationn son bir yldaki basitletirilmi mali tablolar.pdf
te Phone Corporationn son bir yldaki basitletirilmi mali tablolar.pdfte Phone Corporationn son bir yldaki basitletirilmi mali tablolar.pdf
te Phone Corporationn son bir yldaki basitletirilmi mali tablolar.pdf
adwitanokiastore
 

More from adwitanokiastore (20)

The effect of the COVID-19 Pandemic in Australia. Australian autho.pdf
The effect of the COVID-19 Pandemic in Australia. Australian autho.pdfThe effect of the COVID-19 Pandemic in Australia. Australian autho.pdf
The effect of the COVID-19 Pandemic in Australia. Australian autho.pdf
 
The evidence on the relation between participation in the IMF lendin.pdf
The evidence on the relation between participation in the IMF lendin.pdfThe evidence on the relation between participation in the IMF lendin.pdf
The evidence on the relation between participation in the IMF lendin.pdf
 
The end of bureaucracy Introduction Haier, based in Qingdao, Chi.pdf
The end of bureaucracy Introduction Haier, based in Qingdao, Chi.pdfThe end of bureaucracy Introduction Haier, based in Qingdao, Chi.pdf
The end of bureaucracy Introduction Haier, based in Qingdao, Chi.pdf
 
The FBI wants to determine the effectiveness of their 10 Most Wanted.pdf
The FBI wants to determine the effectiveness of their 10 Most Wanted.pdfThe FBI wants to determine the effectiveness of their 10 Most Wanted.pdf
The FBI wants to determine the effectiveness of their 10 Most Wanted.pdf
 
The dollar rate of return on euro deposits isA the euro interest r.pdf
The dollar rate of return on euro deposits isA the euro interest r.pdfThe dollar rate of return on euro deposits isA the euro interest r.pdf
The dollar rate of return on euro deposits isA the euro interest r.pdf
 
The cost of an item of property, plant and equipment includes all of.pdf
The cost of an item of property, plant and equipment includes all of.pdfThe cost of an item of property, plant and equipment includes all of.pdf
The cost of an item of property, plant and equipment includes all of.pdf
 
The data set below summarizes F2 numbers from an F1 cross arising .pdf
The data set below summarizes F2 numbers from an F1 cross arising .pdfThe data set below summarizes F2 numbers from an F1 cross arising .pdf
The data set below summarizes F2 numbers from an F1 cross arising .pdf
 
The book value of equity of a firm at 31122020 is 2.000 million eu.pdf
The book value of equity of a firm at 31122020 is 2.000 million eu.pdfThe book value of equity of a firm at 31122020 is 2.000 million eu.pdf
The book value of equity of a firm at 31122020 is 2.000 million eu.pdf
 
The chance of a type 1 error is reduced byStatistically sign.pdf
The chance of a type 1 error is reduced byStatistically sign.pdfThe chance of a type 1 error is reduced byStatistically sign.pdf
The chance of a type 1 error is reduced byStatistically sign.pdf
 
The 1948 Declaration of Human Rights covers many areas of diversity .pdf
The 1948 Declaration of Human Rights covers many areas of diversity .pdfThe 1948 Declaration of Human Rights covers many areas of diversity .pdf
The 1948 Declaration of Human Rights covers many areas of diversity .pdf
 
Thanks so much for your help. Review the GameService class. Noti.pdf
Thanks so much for your help. Review the GameService class. Noti.pdfThanks so much for your help. Review the GameService class. Noti.pdf
Thanks so much for your help. Review the GameService class. Noti.pdf
 
Teslas Inc. Accrued liabilities1. Are operating liabilities lar.pdf
Teslas Inc. Accrued liabilities1. Are operating liabilities lar.pdfTeslas Inc. Accrued liabilities1. Are operating liabilities lar.pdf
Teslas Inc. Accrued liabilities1. Are operating liabilities lar.pdf
 
Tek bir bamsz deiken i�eren bir regresyon modeline ________ de.pdf
Tek bir bamsz deiken i�eren bir regresyon modeline ________ de.pdfTek bir bamsz deiken i�eren bir regresyon modeline ________ de.pdf
Tek bir bamsz deiken i�eren bir regresyon modeline ________ de.pdf
 
Teknoloji �kmaz nedir Teknoloji �kmazlar ekonomik b�y�me i�in neden.pdf
Teknoloji �kmaz nedir Teknoloji �kmazlar ekonomik b�y�me i�in neden.pdfTeknoloji �kmaz nedir Teknoloji �kmazlar ekonomik b�y�me i�in neden.pdf
Teknoloji �kmaz nedir Teknoloji �kmazlar ekonomik b�y�me i�in neden.pdf
 
Tedarik zinciri y�netimi aadakilerin t�m�n� i�erir A. Satn alma.pdf
Tedarik zinciri y�netimi aadakilerin t�m�n� i�erir A. Satn alma.pdfTedarik zinciri y�netimi aadakilerin t�m�n� i�erir A. Satn alma.pdf
Tedarik zinciri y�netimi aadakilerin t�m�n� i�erir A. Satn alma.pdf
 
Technically, there are pieces of code created by �mining� that are m.pdf
Technically, there are pieces of code created by �mining� that are m.pdfTechnically, there are pieces of code created by �mining� that are m.pdf
Technically, there are pieces of code created by �mining� that are m.pdf
 
te Phone Corporationn son bir yldaki basitletirilmi mali tablolar.pdf
te Phone Corporationn son bir yldaki basitletirilmi mali tablolar.pdfte Phone Corporationn son bir yldaki basitletirilmi mali tablolar.pdf
te Phone Corporationn son bir yldaki basitletirilmi mali tablolar.pdf
 
SWOT analizi genellikle stratejik hedefler belirlenmeden �nce yapl.pdf
SWOT analizi genellikle stratejik hedefler belirlenmeden �nce yapl.pdfSWOT analizi genellikle stratejik hedefler belirlenmeden �nce yapl.pdf
SWOT analizi genellikle stratejik hedefler belirlenmeden �nce yapl.pdf
 
Susan es un propietario �nico que no presenta estados financieros co.pdf
Susan es un propietario �nico que no presenta estados financieros co.pdfSusan es un propietario �nico que no presenta estados financieros co.pdf
Susan es un propietario �nico que no presenta estados financieros co.pdf
 
Taylor owns an IT startup that is showing great promise. Rogue Inc.,.pdf
Taylor owns an IT startup that is showing great promise. Rogue Inc.,.pdfTaylor owns an IT startup that is showing great promise. Rogue Inc.,.pdf
Taylor owns an IT startup that is showing great promise. Rogue Inc.,.pdf
 

Recently uploaded

Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
ciinovamais
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
kauryashika82
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
AnaAcapella
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
QucHHunhnh
 

Recently uploaded (20)

microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introduction
 
ICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptxICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptx
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
Spatium Project Simulation student brief
Spatium Project Simulation student briefSpatium Project Simulation student brief
Spatium Project Simulation student brief
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
 
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning PresentationSOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
 
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
 
Dyslexia AI Workshop for Slideshare.pptx
Dyslexia AI Workshop for Slideshare.pptxDyslexia AI Workshop for Slideshare.pptx
Dyslexia AI Workshop for Slideshare.pptx
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Micro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdfMicro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdf
 
Food safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdfFood safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdf
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptxBasic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
 
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
 
Third Battle of Panipat detailed notes.pptx
Third Battle of Panipat detailed notes.pptxThird Battle of Panipat detailed notes.pptx
Third Battle of Panipat detailed notes.pptx
 
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptxSKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
 

The following is Allison Corporations contribution format income st.pdf

  • 1. The following is Allison Corporation's contribution format income statement for last month: Sales $800,000 Less: variable expenses 400,000 Contribution margin 400,000 Less: fixed expenses 300,000 Operating income $100,000 The company has no beginning or ending inventories. The company produced and sold 20,000 units last month. 1. How many units would the company have to sell to attain after-tax profits of $72,000, assuming it is subject to a 40% income tax rate? 2. What is the company's margin of safety percentage? 3. What is the company's degree of operating leverage?