Contribution Margin Molly Company sells 40,000 units at $16 per unit. Variable costs are $9.92 per unit, and fixed costs are $119,200. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) per unit c. Income from operations
Q: Molly Company sells 19,000 units at $49 per unit. Costs that vary in total dollar amount as the…
A: Contribution Margin ratio: It is a ratio that measures the contribution margin generated by the…
Q: Contribution Margin Sally Company sells 20,000 units at $25 per unit. Variable costs are $20.50 per…
A: A Sales(20,000 units*25) $ 500,000 B Variable costs(20,000 units*20.5) $ 410,000…
Q: Contribution Margin Harry Company sells 40,000 units at $36 per unit. Variable costs are $22.32 per…
A: a. Contribution margin = Sales - variable cost = $36-22.32 = $13.68 Contribution margin ratio =…
Q: Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per unit, and fixed…
A: The contribution margin is the percent change in revenue and variable expenses for a corporation.…
Q: Contribution Margin Morrison Company sells 124,000 units at $16 per unit. Variable costs are $12…
A: The contribution margin is calculated as excess of sales revenue over variable expenses.
Q: Stuart Corporation sells products for $31 each that have variable costs of $14 per unit. Stuart's…
A: Contribution per unit=Sale per unit-Variable cost per unit=$31-$14=$17
Q: Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed…
A: Variable cost: It is the cost that changes with the change in level of output. E.g., Labor, raw…
Q: Contribution Margin Sally Company sells 24,000 units at $28 per unit. Variable costs are $19.60 per…
A: a. Compute contribution margin ratio.
Q: Zeke Company sells 25,200 units at $17 per unit. Variable costs are $7 per unit, and fixed costs are…
A: Compute the contribution margin ratio.
Q: Contribution Margin Ferrante Company sells 27,000 units at $25 per unit. Variable costs are $16.00…
A: Answer a) Calculation of Contribution Margin ratio Contribution margin ratio = Contribution margin…
Q: Molly Company sells 30,000 units at $43 per unit. Variable costs are $26.66 per unit, and fixed…
A: CVP analysis is used in decision-making by the management. It helps to make strategies and take wise…
Q: Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per unit, and fixed…
A: Sale Value=Units sold×Per unit=90,000×$60=$5,400,000
Q: Contribution Margin Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per…
A: Calculate the Contribution margin ratio.
Q: Contribution margin, breakeven point, margin of safety. Dianne Company makes a product that sells…
A: “Since you have asked multiple sub-parts, we will solve the first three sub-part for you. If you…
Q: Starship Company sells 55,000 units at $14 per unit. Fixed costs are $67,000 and income from…
A: Contribution= Fixed cost+ Net income = $67000+$263000 = $ 330000 Contribution per unit=…
Q: Contribution Margin Molly Company sells 36,000 units at $15 per unit. Variable costs are $10.95 per…
A: The selling price minus variable cost of a unit is termed as contribution margin. In short, the…
Q: Sally Company sells 25,000 units at $47 per unit. Variable costs are $28.67 per unit, and fixed…
A: Particular $ Sales 47 variable cost -28.67 contribution per unit 18.33 Contribution for…
Q: Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs…
A: Contribution margin is the difference of selling price and the variable cost per unit. It is the…
Q: Sunn Company manufactures a single product that sells for $130 per unit and whose variable costs are…
A: Formula: Contribution margin per unit = Selling price per unit - Variable cost per unit
Q: Contribution Margin Harry Company sells 19,000 units at $30 per unit. Variable costs are $22.20 per…
A: Contribution margin ratio - It is a ratio that shows the sum of the amount available to cover fixed…
Q: Contribution Margin Ferrante Company sells 31,000 units at $18 per unit. Variable costs are $10.62…
A: Contribution Margin is difference between sales value and variable cost. It can also be defined as…
Q: Penny Company sells 25,000 units at $75 per unit. Variable costs are $30 per unit, and operating…
A: The contribution is calculated as the difference of selling price and variable cost. Contribution…
Q: Rooney Corporation sells products for $28 each that have variable costs of $16 per unit. Rooney's…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: Bluegill Company sells 45,000 units at $18 per unit. Fixed costs are $62,000, and income from…
A: The variable cost per unit can be calculated as per the concept of CVP analysis
Q: Bluegill Company sells 16,200 units at $360 per unit. Fixed costs are $291,600, and operating income…
A: Sales volume = 16,200 units. Selling price per unit = $360 per unit Sales revenue = 360 * 16,200 =…
Q: Campbell Corporation sells products for $30 each that have variable costs of $12 per unit.…
A: Break even points in units = Fixed costs / contribution margin per unit. Contribution Margin per…
Q: Rooney Company incurs annual fixed costs of $128,075. Variable costs for Rooney's product are $29.25…
A: For determining the sales in dollars and sales volume in units, we have to use the following…
Q: Molly Company sells 29,000 units at $48 per unit. Variable costs are $27.36 per unit, and fixed…
A: Contribution Margin Ratio: Contribution Margin is the residual value which is computed by deducting…
Q: Contribution Margin Sally Company sells 37,000 units at $16 per unit. Variable costs are $10.40 per…
A: (a) contribution margin ratio = unit contribution margin / selling price per unit unit…
Q: Contribution Margin Sally Company sells 15,000 units at $24 per unit. Variable costs are $20.40 per…
A: Contribution margin ratio = (Contribution Margin per unit/ Selling Price per unit) Contribution…
Q: Sally Company sells 19,000 units at $50 per unit. Variable costs are $40.50 per unit, and fixed…
A: Determination of Contribution margin ratio, Unit contribution margin and Operating income is…
Q: Bluegill Company sells 15,500 units at $320 per unit. Fixed costs are $248,000 and income from…
A: Formulas contribution margin=Fixed cost+Income from operations --------------------------…
Q: Contribution Margin Harry Company sells 32,000 units at $38 per unit. Variable costs are $28.12 per…
A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…
Q: Contribution Margin United Merchants Company sells 34,000 units at $12 per unit. Variable costs are…
A:
Q: Harry Company sells 37,000 units at $44 per unit. Variable costs are $36.52 per unit, and fixed…
A: Contribution margin can be defined as the cost-accounting technique that determines that whether a…
Q: Jordan Company incurs annual fixed costs of $51,415. Variable costs for Jordan's product are $30.15…
A: The contribution margin can be stated as a percentage of the total or as a percentage of each unit…
Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000…
A: Break even points ( Units ) = Fixed cost / Contribution margin per unit Contribution margin per unit…
Q: Calculating contribution margin Glenn Company sells a product for $80 per unit. Variable costs are…
A:
Q: Morrison Company sells 124,000 units at $16 per unit. Variable costs are $12 per unit, and fixed…
A: Contribution margin: The contribution margin is the portion of sales revenue left after covering the…
Q: Contribution Margin Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per…
A: Contribution margin ratio = Unit Contribution margin/Selling price Unit contribution margin =…
Q: Contribution Margin Willie Company sells 39,000 units at $33 per unit. Variable costs are $22.11…
A: The Break-even point is the point where the company incurs no loss no profit. The contribution…
Q: Contribution margin, breakeven point, margin of safety. Dianne Company makes a product that sells…
A: Contribution margin is important concept used in cost accounting. It means sales revenue which is…
Q: Willie Company sells 34,000 units at $47 per unit. Variable costs are $32.43 per unit, and fixed…
A: The contribution margin is calculated as difference between sales and variable costs. The break even…
Q: Campbell Corporation sells products for $31 each that have variable costs of $18 per unit.…
A: Formula: Contribution margin per unit = Selling price per unit - Variable cost per unit
Q: ontribution Margin olly Company sells 32,000 units at $39 per unit. Variable costs are $29.25 per…
A: Contribution is the difference between the sales and the marginal cost (Variable cost) of sales and…
Q: Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per unit, and fixed…
A: Contribution margin ratio = Contribution/Sales *100 Unit contribution margin = Contribution…
Q: Michigan Company sells 10,000 units at $100 per unit. Variable costs are $75 per unit, and fixed…
A: Formula: The unit contribution = Selling price - variable cost
Q: Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from…
A: Contribution Margin ratio: It is a ratio that measures the contribution margin generated by the…
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- 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.Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200Klamath 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?
- 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?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?The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is 5. In 2016, the company sold 80,000 units, which was 10,000 units above the break-even point. Compute the following: 1. Total fixed expenses. (Hint: First compute the contribution margin per unit.) 2. Total variable expense at the break-even volume.
- 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.Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?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.)
- Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?