Imelda Company budgets sales of $810,000, fixed costs of $62,000, and variable costs of $275,400. What is the contribution margin ratio r Imelda Company? (Enter your answer as a whole number.) % If the contribution margin ratio for Peppa Company is 62%, sales were $596,000, and fixed costs were $273,440, what was the income from perations?
Q: . Young Company budgets sales of $830,000, fixed costs of $14,900, and variable costs of $66,400.…
A: For Part a.Contribution Margin Ratio = Sales - Variable costsSalesFor Part b.Income from Operations…
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: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The net income is calculated as difference between sales and total expenses incurred. The total…
Q: a. Young Company budgets sales of $1,040,000, fixed costs of $53,800, and variable costs of…
A: Contribution margin refers to the amount that the company earned from selling goods more than its…
Q: Wells corporation has the following sales mix for its three products: A,20% B,35%,and C,45%.Fixed…
A: Break-even analysis is a technique used widely by the production management. It helps to determine…
Q: Assume the following financial data pertains to a certain single-product lodging business: Room…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Which of the following formulas is used to calculate the contribution margin ratio? (Sales −…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Dave’s has total fixed costs of $45,000. If the company’s contribution margin is 50%, the income tax…
A: Units need to sell to produce to desired profit = (Fixed costs + Desired profit) / Contribution…
Q: Young Company budgets sales of $1,210,000, fixed costs of $68,100, and variable costsof $302,500.…
A: Contribution margin ratio (%)=Contribution marginBudgeted sales×100
Q: A recent income statement of Marvell Corporation reported the following data: Sales revenue…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Contribution Margin Ratio a. Imelda Company budgets sales of $1,080,000, fixed costs of $82,600, and…
A: Contribution margin = $1,080,000 - $367,200 = $712,800
Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how…
A: Cost-volume-profit analysis is a technique that is used to determine the impact of costs and sales…
Q: a. Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of…
A: Contribution margin = sales - variable costs = $112900000-66611000 = $46,289,000
Q: TORT Company produced 40,000 units of product in 2020. Sales Revenue per unit was $20; variable cost…
A: The details are given of manufacturing company. Required 1. Contribution Margin Ratio 2. Operating…
Q: Last month when Holiday Creations, Incorporated, sold 41.000 units, total sales were $164,000, total…
A: Formula: Contribution margin ratio = ( Contribution margin / Total sales ) x 100
Q: a. Young Company budgets sales of $1,120,000, fixed costs of $55,400, and variable costs of…
A: Contribution margin = sales - variable costs = $1120000-246400 = $873,600
Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,200,000…
A: 5. Turnover = $240,000$150,000=1.6
Q: Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of…
A: Determine the contribution margin ratio for Young Company.
Q: Patriot Corp has the following contribution format income statement. (Assume all information is…
A: Margin of safety (in dollars)= Total sales - Break even sales
Q: Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total…
A: Contribution margin ratio is the ratio indicating the percentage of the amount earned from sales…
Q: During its most recent fiscal year, Raphael Enterprises sold 210,000 electric screwdrivers at a…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
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: The manager of Dukey's Shoe Station estimates operating costs for the year will include $465,000 in…
A: Breakeven sales is that level of sales revenue at which business is only recovering it's fixed costs…
Q: Roosevelt Corporation has a weighted-average unit contribution margin of $30 for its two products,…
A: Total Break-even point = fixed costs / weighted-average unit contribution margin = $1,800,000/30 =…
Q: a. Young Company budgets sales of $1,100,000, fixed costs of $37,100, and variable costs of…
A: Contribution margin: Difference between the sales and the variable costs is called contribution…
Q: During its most recent fiscal year, Dover, Incorporated had total sales of $3,200,000. Contribution…
A: Contribution margin: The difference between the sales and the variable costs is called contribution…
Q: The following monthly data in contribution format are available for the MN Co. and its only product:…
A: Projected sales to achieve target profit is calculated by using CVP analysis ( cost-volume-profit),…
Q: The contribution margin ratio is 25% for Company A and the break-even point in sales is $260,000. If…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio.
Q: Best Sleep Company reported the following results from last year's operations: Sales $ 1,500,000…
A: Net operating income (investment opportunity)=Contribution-Fixed cost=$240,000×70%-$144,000=$24,000
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: 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: Company XYZ made total sales revenue of $500,000. The variable manufacturing costs were $135,000…
A: Contribution Margin = Sales Revenue - Variable Expenses It is used to measure whether entity can…
Q: Madonna Company had the following results for its make-up division. Sales…
A: Controllable margin refers to the contribution margin remaining after the deduction of controllable…
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: Channing Company has two divisions, S and T. The company's overall contribution margin ratio is 30%…
A: If Contribution margin ratio = 25% Then variable cost = 100-25 = 75%
Q: a. Yountz Company budgets sales of $1,130,000, fixed costs of $68,600, and variable costs of…
A: A.) Given : Sales-1,130,000 Variable costs- $305,100 Contribution Margin= Sales - Variable Costs…
Q: Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of…
A: Formula: Contribution margin = Sales - variable cost
Q: Hudson Company reports the following contribution margin income statement. HUDSON COMPANY…
A: The margin of safety is the amount of profitability that results from the difference between the…
Q: Contribution Margin Ratio a. Young Company budgets sales of $950,000, fixed costs of $55,600, and…
A: a. Calculation of contribution margin ratio: Therefore, the contribution margin ratio is 74%.…
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: The calculation of contribution margin has been made as follows: Contribution margin=Sales-Variable…
Q: Bernoulli's business budget included sales of $350 000 and fixed costs of $52 600. If the total…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 95…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
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: Company XYZ made total contribution margin of $200,000 and a net income of $150,000. The company…
A: Contribution = Fixed cost + Net profit
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: At a volume of 20,000 units, Drees reported sales revenues of $1,000,000, variable costs of…
A: Total contribution=Sale-Variable costs=$1,000,000-$300,000=$700,000
Q: a. Imelda Company budgets sales of $1,800,000, fixed costs of $394,000, and variable costs of…
A: Contribution margin ratio = (Total contribution/sales) ×100
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- Company 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.Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Unit variable cost is 21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is 30,000 and fixed selling and administrative expense is 48,000. Required: 1. Calculate the variable cost ratio. 2. Calculate the contribution margin ratio. 3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin.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?
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Garrett 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.
- Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller prepared the following budgeted income statement for the coming year: Required: 1. What is Arbergs variable cost ratio? What is its contribution margin ratio? 2. Suppose Arbergs actual revenues are 30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer. 4. What is Arbergs expected margin of safety? 5. What is Arbergs margin of safety if sales revenue is 380,000?Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals 78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of 81,900 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1.Sports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of 12,345,000 last year, with total variable costs of 5,678,700 and fixed costs of 2,192,400. Required: 1. What is the contribution margin ratio for Sports-Reps based on last years data? What is the break-even point in sales revenue? 2. What was the margin of safety for Sports-Reps last year? 3. One of Sports-Repss agents proposed that the firm begin cultivating high school sports stars around the nation. This proposal is expected to increase revenue by 230,000 per year, with increased fixed costs of 122,500. Is this proposal a good idea? Explain.
- Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: It is expected that 12,000 units will be sold at a price of 240 a unit. Maximum sales within the relevant range are 18,000 units. Instructions 1. Prepare an estimated income statement for 20Y7. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-even sales. 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to one decimal place.) 6. Determine the operating leverage.Klamath 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?Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345.000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.