A company has total fixed costs of $240,000 and a contribution margin ratio of 20%. The total sales necessary to break even are Group of answer choices $1,200,000. $288,000. $960,000. $300,000.
Q: Spring Company’s cost structure is dominated by variable costs with a contribution margin ratio of…
A: Fixed cost means the cost which do not vary with the level of output. Variable cost means the cost…
Q: Summersville Production Company had the following projected information for the current year:…
A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…
Q: Wells Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%.…
A: Products Sales mix A 20% B 35% C 45% Breakeven Units = Fixed CostsWeighted-average…
Q: Jackson Company recently calculated its break-even sales revenue to be $32,000. For each dollar of…
A: Given the following information: Break even sales: $32,000 For each dollar of sales revenue,…
Q: Consider the following information available for Barium Company: Total fixed costs $1,440,000…
A:
Q: Help6
A: Following are the calculation of Contribution margin in order to cover fixed costs i.e. Break-even:
Q: Pharoah Corp. had total variable costs of $179,400, total fixed costs of $74,400, and total revenues…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio. The…
Q: A company with a break-even point at $900,000 in sales revenue and had fixed costs of $225,000. When…
A: Margin of safety: It is the sale over and above break even point. Profit is earned on this sale.…
Q: Stonebraker Corporation has provided the following contribution format income statement. All…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: he contribution margin ratio is 25% for your company and the break-even point in sales revenue is…
A: Break even sales in dollars = Fixed expense / Contribution Margin Ratio Contribution margin =…
Q: At its $25 selling price, Paciolli Company has sales of $10,000, variable manufacturing costs of…
A: Formula: Contribution margin = Selling price per unit - variable cost per unit Deduction of variable…
Q: The following data relate to product PQ Selling price $215 per unit…
A: Solution .. Selling price per unit = $215 Variable cost per unit = $120 Contribution margin per…
Q: A company has sales of $1,000,000, variable costs of $250,000, and fixed costs of $600,000. Compute…
A:
Q: Stonebraker Corporation has provided the following contribution format income statement. All…
A: As posted multiple sub parts questions we are answering only first three sub parts kindly repost the…
Q: The management estimates that the following costs and activity would be associated with the…
A: Absorption Costing Approach: In manufacturing, absorption costing is a method of costing that…
Q: An organization manufactures and sells a single product that has a variable cost of $24 per unit and…
A: Introduction: Break-even point is the level of cash necessary to cover the company's entire fixed…
Q: If the contribution margin ratio for France Company is 35%, sales are $419,000, and fixed costs are…
A: Contribution=Sale×Contribution margin ratio=$419,000×35%=$146,650
Q: If the contribution margin ratio for France Company is 43%, sales are $407,000, and fixed costs are…
A: The contribution margin ratio is computed by dividing the contribution by the sales and multiplying…
Q: The Ronowski Company has three product lines of belts—A, B, and C— with contribution margins of $3,…
A:
Q: For Blossom Company, variable costs are 70% of sales, and fixed costs are $182,000. Management's net…
A: The Break-even point is the point where the company is able to cover all its costs but does not make…
Q: A company has fixed costs of P150,000, a variable cost ratio of 60%, and a margin of safety ratio of…
A: None of the above.
Q: Roosevelt Corporation has a weighted-average unit contribution margin of $30 for its two products,…
A: Total Break-even point = fixed costs / weighted-average unit contribution margin = $1,800,000/30 =…
Q: Johnson Company has a breakeven point of 4,800 units. At breakeven, variable costs are P480,000 and…
A: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin per unit =…
Q: Company XYZ made total sales revenue of $300,000. The variable manufacturing costs were $95,000…
A: Contribution = selling price - variable cost
Q: Victoria Company produces two products, X and Y, which account for 60 percent and 40 percent,…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio. Break even…
Q: Company XYZ made total sales revenue of $450,000. The variable manufacturing costs were $125,000…
A: Contribution Margin = Sales revenue - Variable Expenses Contribution Margin is difference between…
Q: Your Company produces three products, with costs and selling prices as follows: Demand in units…
A: Contribution Margin - Sales Value - Variable Cost = Contribution Margin. Contribution Margin is the…
Q: Company XYZ made total sales revenue of $400,000. The variable manufacturing costs were $115,000…
A: Contribution Margin is difference between net product revenue and variable expenses. It is used to…
Q: Porter Corporation has fixed costs of $500,000, variable costs of $32 per unit and a contribution…
A: Requirement a:
Q: Raines Company's sales are $940,000 with operating profits of $168,000. If the contribution margin…
A: The term “operating profit” refers to an accounting metric measuring the profits a company generates…
Q: Idaho Corp. has fixed costs of $20,000 and a contribution margin ratio of 50%. Currently, sales are…
A: Margin of Safety: The margin of safety is a notion in investing that states that investor should…
Q: Kreter, Inc. earned net income of $300,000 last year. This year it wants to earn net income of…
A: Cost-Volume-Profit (CVP) Analysis: It is the technique of managerial accounting that examines how…
Q: Watson Company has monthly fixed costs of $86,000 and a 40% contribution margin ratio. If the…
A: Sales to be made for target income = (Fixed Cost + Target Income) / Contribution Margin Ratio
Q: Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
Q: Armstrong Industries has a contribution margin of $300,000 and a contribution margin ratio of 30%.…
A: Contribution margin ratio means the portion of sales in excess of variable expense. If, Sales is…
Q: A company has total fixed costs of $200,000 and a contribution margin ratio of 20%. The total sales…
A: The dollar amount of revenue earned by a company that covers all the expenses that are both fixed…
Q: HASF Corporation has fixed costs of 1,000,000 variable costs of 50 per units and a contribution…
A: Contribution margin per unit = Sales price per unit - Variable costs per unit Contribution margin…
Q: Blossom Corp. had total variable costs of $137,500, total fixed costs of $103,500, and total…
A: Formulas: Contribution margin = Sales-Variable costs ------------ Contribution margin ratio =…
Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how…
A: Break even is a situation whereby the entity is neither in losses nor earning any profits.
Q: At its $34 selling price, Atlantic Company has sales of $34,000, variable manufacturing costs of…
A: Contribution margin = Selling price - Variable cost per unit First, compute the variable cost per…
Q: Montoya Manufacturing has fixed costs of $2,500,000 and variable costs are 40% of sales. What are…
A: Variable cost: This is a cost that changes with the number of units produced or the level of…
Q: Steven Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and…
A: The break even point can be computed as fixed costs divided by weighted average contribution
Q: Midnight Co. has a contribution margin of $240,000, which is 40% of total sales. Fixed costs are…
A: Total Sales=Contribution marginContribution margin ratioVariable Cost=Sales-Contribution Margin
Q: For Ivanhoe Company, variable costs are 66% of sales, and fixed costs are $183,000. Management's net…
A: We know that under marginal costing Profit = Sales Revenue - Total Variable cost - Total Fixed…
Q: Imelda Company budgets sales of $1,800,000, fixed costs of $394,000, and variable costs of…
A: The contribution margin is calculated as excess of sales revenue over variable cost.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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. 2,000Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
- 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?Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
- Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Company 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
- Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.