Assume a company reported the following results:Sales$400,000Variable expenses260,000Contribution marginFixed expenses140,00060,000Net operating income$ 80,000Average operating assets$575,000The margin is closest to:Multiple Choice35.0%.20.0%.69.6%.14.5%. Assume the following Information appears In the standard cost card for a company that makes only one product:Standard Quantityor Hours5 poundsStandard Priceor RateDirect materials$11.50 per pound$17.00 per hour$ 3.00 per hourDirect labor2 hoursVariable manufacturing overhead2 hoursDuring the most recent perlod, the following additional Information was avallable:• 20,000 pounds of material was purchased at a cost of $10.50 per pound.• All of the materlal that was purchased was used to produce 3,900 units.• 8,000 direct labor-hours were recorded at a total cost of $132,000.What is the direct materials quantity varlance?Multiple Choice$5,750 U$5,750 F$5,250 U$5,250 F

Name: Assume a company reported the following results:Sales$400,000Variable
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Description: Assume a company reported the following results:Sales$400,000Variable expenses260,000Contribution marginFixed expenses140,00060,000Net operating income$ 80,000Average operating assets$575,000The margin is closest to:Multiple Choice35.0%.20.0%.69.6%.

Solution 1: Margin = Net operating income / Sales = $80,000 / $400,000 = 20% Hence 2nd option is…

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Assume a company reported the following results: Sales $400,000 Variable expenses Contribution margin 260,000 140,000 Fixed expenses 60,000 Net operating income $ 80,000 Average operating assets $575,000 The margin is closest to:

Assume a company reported the following results: Sales $400,000 Variable expenses Contribution margin 260,000 140,000 Fixed expenses 60,000 Net operating income $ 80,000 Average operating assets $575,000 The margin is closest to:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...

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