If Morton Company expects to sell VCR's at $100 a unit with variable costs of $60 per unit andDVD's at $200 per unit with variable costs of $120 per unit, what is the weighted averagecontribution margin if the sales mix is 4 DVD's for 1 VCR?$160$ 36O $120O$72

Definition of Weighted Average Contribution Margin:Average contribution margin that is weighted to…

Answered: If Morton Company expects to sell VCR's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Original DVD player sales and cost data for ABC Video:Unit Selling Price: Php 500Unit variable cost: Php 300Total fixed cost: Php 200,000Break-even sales: Php 500,000 0r 1,000 units Case: Vargo’s principal supplier of raw materials has justannounced a price increase. The higher cost is expected toincrease the variable cost of DVD players by $25 per unit.Management decides to hold the line on the selling price of theDVD players. It plans a cost-cutting program that will save$17,500 in fixed costs per month. Vargo is currently realizingmonthly net income of $80,000 on sales of 1,400 DVD players.Question: What increase in units sold will be needed tomaintain the same level of net income?
Salalah Company has the following information: Total Sales (Amount) = OMR 80000 %3D Selling Price per Unit= OMR 20 per unit Break-even point = 3000 units Fixed cost = OMR 15000 What is the correct amount of Total Variable Cost? Select one: O a. OMR 60000 O b. None of the options O c. OMR 65000 O d. OMR 50000
Advanced Electronics manufactures DVDs and sells them directly to retailers, who typically sell them for €20. Retailers take a 40 per cent margin based on the retail selling price. Advanced’s cost information is as follows: DVD package and disc €2.50/DVDRoyalties €2.25/DVDAdvertising and promotion €500,000Overhead €200,000 Calculate the following:(a) contribution per unit and contribution margin(b) break-even volume in DVD units and dollars(c) volume in DVD units and euro sales necessary if Advanced’s profit goal is 20 per cent profit on sales(d) net profit if 5 million DVDs are sold
P Company has provided the following data: Sales Price per unit: $50. Variable Cost per unit: $30; Fixed Cost: $135,000 Expected Sales: 20,000 units. d. Determine the margin of safety in dollars. e. If the company wants to have net income of $70,000, how many units must they sell.
Sales are 4000 units, fixed cost is 10000, selling price /unit= 30 OMR, variable cost /unit= 25 OMR calculate Margin of Safety. a. 61000 OMR b. 60000 OMR c. 62000 OMR d. 63000 OMR Clear my choice
A company produces very unusual CD's for which the variable cost is $20 per CD and the fixed costs are $20000. They will sell the CD's for $70 each. Let x be the number of CD's produced. a. Write the total cost C as a function of the number of CD's produced. b. Write the total revenue R as a function of the number of CD's produced. c. Write the total profit P as a function of the number of CD's produced. d. Fine the number of CD's which must be produced to break even. The number of CD's which must be produced to break even is _______.
Salalah Company has the following information: Total Sales (Amount) = OMR 80000 Selling Price per Unit= OMR 20 per unit Break-even point = 3000 units Fixed cost = OMR 15000 What is the correct amount of Total Variable Cost? Select one: a. None of the options b. OMR 50000 c. OMR 65000 d. OMR 60000
Shock Electronics sells portable heaters for #35 per unit, and the variable cost to produce them is $22. Mr. Amps estimates that the fixed costs are $97,500. a) Compute the break even point in units BE = FC/ P-VC per unit b) Fill in the following table (in dollars) to illustrate that the break-even point has been achieved Sales....... _______________ - Fixed Costs (FC) _______________ -Total Variable Costs (VC) _______________ Net Profit (loss) ________________
Dhofar Company has the following information: Total Fixed cost OMR 8000 Selling price per unit OMR 20 Variable cost per unit OMR 12, What will be the correct amount of Profit when 2500 Units have been sold? Select one: a. OMR 20000 b. None of the options c. OMR 12000 d. OMR 10000
Sales = 5250 units with selling price of OMR 20 per unit, Break-even point = 4000 units, Fixed cost = OMR 24000. What is the amount of Total Variable cost? Select one: a. OMR 56000 b. OMR 73500 c. OMR 20000 d. OMR 30000
Nabulsi Corporation sells two types of print cartridges. The sales mix is 30% color ink cartridges and 70% black ink cartridges. Color ink cartridges have variable costs per unit of $8 and a selling price of $12. Black ink cartridges have variable costs per unit of $12 and a selling price of $20. The weighted-average unit contribution margin for Nabulsi is a $6.80 b $12.00 c $6.00 d $32.00.
Sales = 5250 units with selling price of OMR 20 per unit, Break-even point = 4000 units, Fixed cost = OMR 24000. What is the amount of Total Variable cost? Select one: a. OMR 73500 b. OMR 20000 c. OMR 56000 d. OMR 30000 2) Total Variable cost is 560,000 OMR total units sold is 7000 units, total fixed cost is 160000 OMR,describe the production costs in the equation form Y = f + vX. Select one: a. Y = 160000 + 100X b. Y = 160000 + 70X c. Y = 160000 + 80X d. Y = 160000 + 40X

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If Morton Company expects to sell VCR's at $100 a unit with variable costs of $60 per unit and DVD's at $200 per unit with variable costs of $120 per unit, what is the weighted average contribution margin if the sales mix is 4 DVD's for 1 VCR? $160 $ 36 O $120 O$72