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 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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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 .pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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 .pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.pdfadwitanokiastore
 
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.,.pdfadwitanokiastore
 

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

A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformChameera Dedduwage
 
The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13Steve Thomason
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphThiyagu K
 
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAPM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAssociation for Project Management
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Celine George
 
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdfSoniaTolstoy
 
BAG TECHNIQUE Bag technique-a tool making use of public health bag through wh...
BAG TECHNIQUE Bag technique-a tool making use of public health bag through wh...BAG TECHNIQUE Bag technique-a tool making use of public health bag through wh...
BAG TECHNIQUE Bag technique-a tool making use of public health bag through wh...Sapna Thakur
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfAdmir Softic
 
social pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajansocial pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajanpragatimahajan3
 
Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..Disha Kariya
 
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...PsychoTech Services
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)eniolaolutunde
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxVishalSingh1417
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfagholdier
 
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfsanyamsingh5019
 
Beyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactBeyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactPECB
 
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 Delhikauryashika82
 

Recently uploaded (20)

A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
 
The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13
 
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptxINDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot Graph
 
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAPM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across Sectors
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17
 
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
 
BAG TECHNIQUE Bag technique-a tool making use of public health bag through wh...
BAG TECHNIQUE Bag technique-a tool making use of public health bag through wh...BAG TECHNIQUE Bag technique-a tool making use of public health bag through wh...
BAG TECHNIQUE Bag technique-a tool making use of public health bag through wh...
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
social pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajansocial pharmacy d-pharm 1st year by Pragati K. Mahajan
social pharmacy d-pharm 1st year by Pragati K. Mahajan
 
Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..
 
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
IGNOU MSCCFT and PGDCFT Exam Question Pattern: MCFT003 Counselling and Family...
 
Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)Software Engineering Methodologies (overview)
Software Engineering Methodologies (overview)
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdf
 
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdf
 
Advance Mobile Application Development class 07
Advance Mobile Application Development class 07Advance Mobile Application Development class 07
Advance Mobile Application Development class 07
 
Beyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactBeyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global Impact
 
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
 

Allison Corp Contribution Format Income Statement Analysis

  • 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?