ACCT 2060 - Chapter 11 and 12 In Class Bonus Point
Chapter 11:
1.
EASTAX INC.
Contribution Income Statement
Total
Unit
Sales
$ 1,000,000
$ 50.00
Variable expenses
600,000
30.00
Contribution Margin
400,000
20.00
Fixed expenses
320,000
16.00
Net Operating Income
80,000
4.00
Income Taxes @ 40%
32,000
1.60
Net Income
$ 48,000
2.40
Additional information:
Average Operating Assets
$500,000
Required Rate of Return
10%
Calculate margin, turnover, Return on Investment (ROI) and Residual Income (RI).