Determine the profit and overhead markup for a company who wants to maintain a 13.2% gross profit margin.
Q: If management’s profit guidelines mandate gross margins of 25 percent, calculate the markup…
A: Here in this question, we are required to calculate the markup percentage. For solving this…
Q: If the contribution margin ratio for Peppa Company is 42%, sales were $2,500,000, and fixed costs…
A: Variable costs = Sales x (1 - contribution margin ratio ) = $2,500,000 x (1 - 0.42) = $1,450,000
Q: a. Criticize the preceding presentation. On what basis does the $10,000 of company fixed expenses…
A: Calculation of ratio of allocating company fixed expenses: 3333 : 1667 : 5000 or .33 : .17 : .50 or…
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A: Fixed cost remains the same for a particular period and does not vary based on hours or units. While…
Q: A company has a marginal cost of $36 per item and it can produce 290 items for a total cost of…
A: Fixed costs = Total cost - Marginal cost * Number of units produced = 26440 - 290*36 = $16000
Q: In a period where opening stocks were 15,000 units and closing stock were 20,000 units, a firm had a…
A: Formula: Fixed cost = Profit using marginal costing - profit using absorption costing. Deduction of…
Q: The following data are from the accounting records of Niles Castings for year 2 Units produced and…
A: The income statement is prepared to estimate the net income or loss incurred during the period.
Q: James Tan is the general manager of the Industrial Product Division, and his performance is measured…
A: SOLUTION- TOTAL CAPITAL INVESTED = WORKING CAPITAL + PLANT & EQUIPMENT .
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: formulas for contribution margin and net income. When selling all 195 products, a company has a…
A: Contribution margin is a's business income less its variable expenses. The subsequent contribution…
Q: At a level of 20,420 units sold, Lee Corp. has sales of $653,600, a contribution margin ratio of…
A: Contribution =Sales×Contribution margin ratio=$653,600×58%=$379,088
Q: The contribution margin ratio of Donath Corporation's only product is 65%. The company's monthly…
A: Contribution margin ratio = 65% Fixed expense = $573,300 Target profit = $9,100
Q: If a company has a net margin of 15%, gross margin of 35% and costs of sale of £25,000, then what is…
A: Answer) Calculation of Sales Revenue Sales Revenue = Cost of Sales/ (100% - Gross Margin) Sales…
Q: If the contribution margin ratio for France Company is 41%, sales were $442,000, and fixed costs…
A: Given: Sales =$442000 Fixed cost =…
Q: Doughton Bearings produces ball bearings for industrial equipment. In evaluating the financial data…
A: Answer - Contribution margin=Sales-Variable cost
Q: A company has an utilization rate of 65%, which at the same time corresponds to their critical…
A: Step 1 Costing is the system for assigning costs to an element of factors of production relevant to…
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: Contribution margin, break-even sales, cost-volume-profit chart, marginof safety, and operating…
A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: The financial data for 2017 and 2018 are presented in the table below. Use the data to calculate the…
A: Productivity seems to be a significant indication of a company's capacity to provide a product or…
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: A company sells one product and its contribution margin ratio is 10%. The company provides the…
A: Net operating income is the income earned by the company from its operations. It is reported in the…
Q: Cheng Co. reports the following information for the coming year. Determine its (a) rate per hour of…
A: (a) Determine rate per hour of direct labor: Rate per hour of direct labor = (Labor rate per hour +…
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A: Budgetary control lets determine the actual results with the budgeted data for a specific period.…
Q: Consider the following information: Sales revenue: $12,000 Variable manufacturing expenses: $3,000…
A: Contribution margin = Sales - Variable cost
Q: Given: The annual accounting data for 2018, presented below. Fixed admin costs : 500K$ Variable…
A: Net income refers to the income earned after deducting the company’s expenditures from the company’s…
Q: Calculate the contribution margin ratio of a company with sales of $180,000 and operating income of…
A: Contribution MarginContribution Margin can be stated on a gross or per unit basis. It represents the…
Q: Ferrante Company sells 24,000 units at $22 per unit. Variable costs are $12.54 per unit, and fixed…
A: Contribution margin = Selling price - Unit Variable cost Contribution margin ratio = Contribution…
Q: Determine the absorption costing net operating income for last year. Show your work!
A: Absorption costing net operating income= Variable costing net operating income +/- Fixed overhead…
Q: The Cartwright Company income statement revenue and per unit costs are as follows: Sales $100.00…
A: Degree of operating leverage defined as the ratio which measures how much of the company operating…
Q: The direct material cost per unit and the labour cost per unit of a manufacturing company are 10 and…
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Q: Crane Company recorded operating data for its shoe division for the year as follows: Sales…
A: Solution: Controllable margin is the margin that is within control of a particular division. It…
Q: Prepare a contribution margin format income statement; calculate breakeven point Presented here is…
A:
Q: A business operated at 100% of capacity during its first month, with the following results: Sales…
A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…
Q: A company has sales of $125,000, variable costs of $45,000 and fixed costs of $30,000. The…
A: Given that, sales = $125000 Variable cost = $45000 Fixed cost = $30000
Q: A company has a product Kio and it has a profit volume ratio of 28%. Fixed operating costs directly…
A: PV ratio is computed as percentage calculated by dividing contribution margin by sales.
Q: Use the following information for the Exercises below. (Algo) [The following information applies to…
A: The Break-even point is the point at which the total cost of the production is equal to the total…
Q: ompute for the total cost per month using costing labor cost by the given data Compute for the…
A: Statement showing total cost per month Particulars Amount Amount Monthly…
Q: If the contribution margin ratio for France Company is 37%, sales were $441,000, and fixed costs…
A: Total contribution margin = Sales*Contribution margin ratio Income from operations = Total…
Q: APPLY THE CONCEPTS: Prepare a contribution margin income statement Assume that you are part of the…
A: Income statement is prepared with a view to ascertain the net income of an entity by deducting total…
Q: Suppose that the company sold all of its completed jobs, adding 40% mark up on its cost. How much is…
A: Prime cost means the addition of direct material and direct labor and other direct expenses.…
Q: The following is yearly information on two main sources for the company profit: Row material Labor…
A: Disclaimer: Since you have asked multiple questions, we will solve the first question for you. If…
Q: Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the…
A: Hi, Since you have posted a question with multiple subparts we are solving the 1st 3 subparts for…
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.
Q: The contribution margin ratio of Donath Corporation's only product is 65%. The company's monthly…
A: Solution.. Contribution margin ratio = 65% Fixed cost = $573,300 Target profit = $9,100 Target…
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- 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.Compute for the total cost per month using costing labor cost by the given data Compute for the percentage weight of the monetary benefit, non monetary benefit, and deferred monetary benefit Compute for the percentage of cost relevant to the sales of total labor cost, given that there are 40 employees in the company and the revenue of the company is 2,500,000 monthly.Recalculate the customer-level operating income using the number of written orders but at their actual $8 cost per order instead of $15 (except for DC, whose actual cost is $15 per order). How will KC Corporation evaluate customer-level operating cost performance this period?
- If the contribution margin ratio for Peppa Company is 42%, sales were $2,500,000, and fixed costs were $590,000, what was the income from operations?Hudson Company reports the following contribution margin income statement. Hudson Company reports the following contribution margin income statement.A manufacturer's contribution margin income statement for the yearfollows. Required: Prepare a contribution margin income statement if the number of units sold (a) increases by 200 units and (b) decreases by 200 units. HUDSON COMPANY Contribution Margin Income Statement For Year EndeDecember 31 Required: 1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent) ?Margin of safetyIf the contribution margin ratio for France Company is 35%, sales are $419,000, and fixed costs are $94,000, the operating income is
- Prepare a contribution margin format income statement; calculate breakeven point Presented here is the income statement for Big Surf, Inc., for the monthof May:Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,000Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,500Gross profi t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,500Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2,500)Based on an analysis of cost behavior patterns, it has been determined that the company’s contribution margin ratio is 30%.Required:a. Rearrange the preceding income statement to the contribution margin format.b. If…Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,200 units at $280 each) $ 3,136,000 Variable costs (11,200 units at $210 each) 2,352,000 Contribution margin 784,000 Fixed costs 567,000 Income $ 217,000 If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)If a company had a contribution margin of $21,000 and a contribution margin ratio of 70%, total variable costs must have been …
- Cheng Co. reports the following information for the coming year. Determine its (a) rate per hour of direct labor (in $) and (b) materials markup (in %). Direct labor rate, including fringe benefits . $50 per DLH Annual direct labor hours . 3,800 hours Annual direct materials purchases $560,000 Annual overhead costs: Materials purchasing, handling, and storage . $39,200 Non-materials related overhead . $114,000 Target profit margin (on both labor and materials) . 30%Consider the following information: Sales revenue: $12,000 Variable manufacturing expenses: $3,000 Variable marketing and admin. expenses: $1,000 Fixed manufacturing expenses: $1,500 Fixed marketing and admin. expenses: $500 Based on the above information, the contribution margin is:If the contribution margin ratio for Martinez Company is 51%, sales were $707,000, and fixed costs were $248,790, what was the operating income?$fill in the blank 2