3. Nizwa Co. has the following information available for September 2015. R.O. 10,800 R.O. 2,600 R.O.205,000 400 Unit selling price of the l-Phone 5s Unit variable costs Total fixed costs Units sold Instructions (a) Prepare a CVP income statement that shows both total and per unit amounts. (b) Find the Contribution Margin Ratio

3. Nizwa Co. has the following information available for September 2015. R.O. 10,800 R.O. 2,600 R.O.205,000 400 Unit selling price of the l-Phone 5s Unit variable costs Total fixed costs Units sold Instructions (a) Prepare a CVP income statement that shows both total and per unit amounts. (b) Find the Contribution Margin Ratio

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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Variable cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. a.Determine the variable costs and the cost amount per unit for the production and sale of 200,000 units of medical tablets. b.Determine the variable cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
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