A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price? Group of answer choices Cannot be determined. $300 $200 $48
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A: The contribution margin can be calculated by using this equation Contribution margin ratio…
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A: Introduction: Contribution margin : Deduction of all variable costs from the sales price derives the…
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A: We have the following information: Variable Cost: $6 per unit Fixed Cost: $2 per unit with normal…
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A: Target contribution margin = Target income + Fixed cost = $60,000 + $270,000 = $330,000
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A: Notes: “Since you have asked multiple question, we will solve the first question for you. If you…
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A: Answer - Sales Level to achieve the desired Target income = (Fixed Cost + Targeted Income) /…
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A: Unit contribution margin = Sales price per unit - variable cost per unit contribution margin ratio =…
Q: Help6
A: Following are the calculation of Contribution margin in order to cover fixed costs i.e. Break-even:
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A: Given that: Fixed costs = $320,000 Variable costs = 60% of sales Margin of safety = 20%
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A: We should first understand about the contribution margin ratio to solve this question. Contribution…
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A: We have the following information: A company has a single product with a selling price of $12 per…
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A: None of the above.
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A: Total Break-even point = fixed costs / weighted-average unit contribution margin = $1,800,000/30 =…
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A: Contribution margin per unit = Selling price - Variable cost Contribution margin ratio =…
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A: *** fixed cost total will remain constant irrespective of the level of activity. *** fixed cost per…
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A: Formula: Break even units = Fixed costs / unit contribution margin.
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A: The break even sales are the sales where business earns no profit no loss.
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A: Compute the CPU as follows:
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A: Variable cost ratio = 60% So, Contribution margin ratio = 40% Contribution margin per unit = P8 x…
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A: Formula: Unit contribution margin = Sales price per unit - variable cost per unit
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A: Fixed cost: Fixed cost refers to those costs that will incur irrespective of the production process.…
Q: company provided the following data: Selling price per unit $80 Variable cost per unit $55 Total…
A: Break even units = Fixed cost/contribution per unit
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A: The margin of safety sales is the difference between the current sales and break even sales.
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A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price?
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- A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin ratio? A.10% B.40% C. 60% D. 90%
- A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio?Calculate the per-unit contribution margin of a product that has a sale price of $150 if the variable costs per unit are $40.If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
- Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000 units are produced. What are the fixed costs per unit when 20,000 units are produced?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.Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120
- Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?