If sales are $797,000, variable costs are 80% of sales, and operating income is $201,000, what is the contribution margin ratio? a. 20% b. 80% C. 76% d. 24%
Q: Guiller Company's projected profit for the coming year follows TOTAL PER UNIT Sales Variable costs…
A: Margin of safety: It can be defined as the difference between the actual sales and the sales at the…
Q: Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin…
A: Information given in question Sales = $ 200000 Contribution $ 200000 × 45% = $ 90000 Variable cost =…
Q: Bryce Co. sales are $876,000, variable costs are $469,800, and operating income is $233,000. What is…
A: Contribution margin: Difference between the sales and the variable costs is called contribution…
Q: If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is…
A: Variable costs = Sales x 55% = $820,000 x 55% = $451,000
Q: If fixed costs are $1,472,000, the unit selling price is $236, and the unit variable costs are $110,…
A: Number of units that are to sold for desired profit means number of units at which business is…
Q: If fixed costs are $1,474,000, the unit selling price is $206, and the unit variable costs are $115,…
A: New Fixed cost = $1,474,000 + $44,800 = $1,518,800 Unit Contribution margin = Selling Price per unit…
Q: Sales revenue (30,000 units) Variable costs Contribution margin Fixed costs Operating income At the…
A: Break even sales is the sales where net income is zero. Or we can say the level where total variable…
Q: If sales are $796,000, variable costs are 76% of sales, and income from operations is $230,000, what…
A: Given: Sales=$796000Variable cost =76% of salesIncome from operations=$230000
Q: If fixed costs are $805,000 and variable costs are 64% of sales, the break-even point in sales…
A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…
Q: If sales are $309,000, variable costs are 75% of sales, and operating income is $36,000, the…
A: Operating Leverage = Contribution Margin / Operating Income Operating Income is given, so we only…
Q: The contribution margin ratio is 30%. If total fixed costs are $24,000, then what is the total cost…
A: Variable cost per unit = sales price x (1 - contribution margin ratio) = $2 x (1 - 0.30) = $1.40…
Q: For Sheffield Corp., sales is $1260000 (6300 units), fixed expenses are $480000, and the…
A: Calculate sales per unit:Sales per unit = (Sales amount / sales in units)Sales per unit = $1,260,000…
Q: A business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P…
A: Contribution margin percentage = Contribution margin / Sales where, Contribution margin = Sales -…
Q: From the following particulars: Sales $ 120,000 Variable Cost…
A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: If the contribution margin ratio is 55%, target operating income is $30,000, and the sales revenue…
A: As per the question we know that contribution margin ratio is 55%Contribution margin ratio=…
Q: If fixed costs are $1,252,000, the unit selling price is $225, and the unit variable costs are $106,…
A: Operating income: Operating income refers to the income generated from the operation of business,…
Q: If fixed costs are $1,289,000, the unit selling price is $226, and the unit variable costs are $110,…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
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: The contribution margin ratio is 30%. If total fıxed costs are $24,000, then what is the total cost…
A: Variable cost per unit = Selling price x (1 - contribution margin ratio) = $2 x (1-0.30) = $1.4 per…
Q: 3. A company has return on sales of 20%, income of $50,000, selling price of $10, and a contribution…
A: Solution.. Income = $50,000 Return on sales = 20% Contribution margin ratio = 40% Selling price…
Q: The contribution margin ratio is 25% and contribution margin at break even point is $200,000. What…
A: Formula: Fixed costs = Break even point in sales x Contribution margin ratio Multiplying…
Q: Brown Company's contribution margin ratio is 24%. Total fixed costs are $84,000. What is Brown's…
A: A point where all the expenses of a company are equal to the revenue of the company is called the…
Q: What is the value of revenue to have operating income of $100,000? Units 3,000 Per Unit Revenue…
A: Contribution margin is the sales revenue which is over and above variable costs in the business.…
Q: If sales are $797,000, variable costs are 69% of sales, and operating income is $206,000, what is…
A: Formula: Contribution margin ratio = [ ( Sales - variable cost ) / Sales ] x 100
Q: Assume the following (1) variable expenses = $294,000, (2) unit sales = 10,000, (3) the contribution…
A: This question deals with determining correct statement from all. Lets start with some understanding.…
Q: If sales are $30,000, fixed costs are margin ratio? $10,000, and variable costs are $7,000 what is…
A: Contribution Margin Ratio: It represents the money made on each product of the company after…
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: If sales are $500,000, variable costs are $200,000, and fixed costs are $260,000, what is the…
A: Contribution=Sales-Variable costs=$500,000-$200,000=$300,000
Q: Sales revenue (30,000 units) Variable costs Contribution margin Fixed costs Operating income At the…
A: Break even point is the situation were the company makes no profit or incur no loss. Hence at break…
Q: Bloom company management predicts that it will incur fixed costs of $160,000 and earn pretax income…
A: 1. Following is the calculation of total sales in dollars:
Q: Contribution Margin Ratio a. Imelda Company budgets sales of $1,800,000, fixed costs of $394,000,…
A: Contribution margin = Budgets sales - variable costs = $1,800,000 - $1,116,000 = $684,000
Q: sales revenue is $35,000, fixed cost is $5,000, and net operation income is $10,000, what is the…
A: The contribution margin is calculated by deducting the variable cost from the sales revenue of the…
Q: For Sheridan Company, variable costs are 70% of sales, and fxed costs are $179,400. Management's net…
A: Formula: Required sales in dollars = ( Fixed cost + Targeted income ) / contribution margin ratio
Q: If sales are $817,000, variable costs are 79% of sales, and operating income is $240,000, what is…
A: Sales = Total variable cost + Total Contribution margin Contribution margin = Sales - Variable cost
Q: Bryce Co. sales are $848,000, variable costs are $466,300, and operating income is $229,000. What is…
A: Formulas: Contribution margin ratio = (Sales - variable cost)/ Sales Contribution margin ratio =…
Q: During the year, the total fixed costs amounted to P60, 000 when the contribution margin is 40% of…
A:
Q: Consider the following: Fixed expenses P78,000 Unit contribution margin 12 Target net profit 42,000…
A: Target Net Profit = P42,000 Total Contribution required = Target Net profit+ Fixed Expenses Total…
Q: If fixed costs are $1,337,000, the unit selling price is $228, and the unit variable costs are $110,…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: If fixed costs are $729,000 and variable costs are 60% of sales, what is the break-even point in…
A: Formulas: Break even sales = Fixed cost / PV ratio Break even sales = Fixed cost / (1- variable cost…
Q: Total Sales are 500,000 OMR, Total Variable cost is 150000 OMR. Fixed cost is 200000 OMR Calculate…
A: Profit is incurred in a business or a company by subtracting expenses from revenue of the company.…
Q: If sales are $500,000, variable cost are $200,000, and fixed costs are $240,000, what is the…
A: Contribution margin ratio is calculated as ratio of contribution and sales
Q: ABC has a per unit contribution margin of $110. If sales increase by 60 units fixed costs increase…
A: Change in income / Loss = ( Units * Contribution margin ) - Fixed cost
Q: If sales are $796,000, variable costs are 76% of sales, and income from operations is $230,000, what…
A: Option D is the Correct Answer i.e. 24%
Q: break-even point in pesos
A: Weighted contribution margin ratio = (Sales mix percentage of X * Contribution margin ratio of X) +…
Q: Contribution Margin Ratio a. Imelda Company budgets sales of S1,800,000, fixed costs of $394,000,…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Maroon Company's contribution margin ratio is 24%. Total fixed costs are $84,000. What is Maroon's…
A: Break-even point refers to the amount of revenue to make the loss or profit zero i.e the total…
Q: If sales are $797,000, variable costs are 69% of sales, and operating income is $206,000, what is…
A: Formulas: Contribution margin ratio = (Sales - Variable cost) / Sales Variable cost = Sale *…
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- A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110Company 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.A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin ratio? A.10% B.40% C. 60% D. 90%
- 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. 2,000Klamath 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?A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150
- 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?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?A companys contribution margin per unit is $25. It the company increases its activity level from 200 units to 350 units, how much will its total contribution margin increase? A. $1,250 B. $3,750 C. $5.000 D. $8,750
- 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.Company 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. 120If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7