Mienfoo Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume: Sales volume (units) 9,500 11,490 Cost of sales P 731,500 P 884,730 Selling and administrative costs P 696,000 P 739,780 The company sells the product for P134.00 per unit. The best estimate of the TOTAL CONTRIBUTION MARGIN when 10,070 units are sold is P ----- ----

Mienfoo Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume: Sales volume (units) 9,500 11,490 Cost of sales P 731,500 P 884,730 Selling and administrative costs P 696,000 P 739,780 The company sells the product for P134.00 per unit. The best estimate of the TOTAL CONTRIBUTION MARGIN when 10,070 units are sold is P ----- ----

Name: Mienfoo Corporation is a wholesaler that sells a single product. Mana
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Description: Mienfoo Corporation is a wholesaler that sells a single product. Management has provided the following cost data fortwo levels of monthly sales volume:Sales volume (units)9,50011,490Cost of salesP 731,500P 884,730Selling and administrative costsP 69

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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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. 11,200
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.
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
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A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell they sell two units of Model 202. Sales and cost information for the two products is shown. What is the contribution margin for a composite unit based on the sales mix? $14 $21 $35 $56
Jellison Company had the following operating data for its first two years of operations: Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was 12. Jellison uses an actual costing system for product costing. Required: 1. Prepare income statements for both years using absorption costing. Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? 2. Prepare income statements for both years using variable costing. Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? 3. Which method do you think most accurately measures firm performance? Why?