PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2]Hermosa, Incorporated produces one model of mountain bike. Partial information for the company follows:Number of bikes produced and soldTotal costaVariable costsFixed costs per yearTotal costsCost per unitVariable cost per unitFixed cost per unitTotal cost per unit.Required:1. Complete the table..2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assumingthe company sells each bike for $800.4. Calculate Hermosa's break-even point in units and sales revenue.Number of bikes produced and soldComplete this question by entering your answers in the tabs below.Required 1 Required 2 Required 4Complete the table.Note: Round your "Cost per Unit" answers to 2 decimal places.510 UnitsTotal costsVariable costsFixed costs per yearTotal costsCost per unit510$ 124,440Variable cost per unitFixed cost per unitTotal cost per unit$7124.440770 UnitsS770$519.75519.75910 Units910Required 2 >

The break-even sales are the sales where business earns no profit or loss during the period. The…

Answered: PA6-1 (Algo) Calculating Contribution…

Principles of Accounting Volume 2

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Chapter3: Cost-volume-profit Analysis

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Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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E8-7A Make or Buy Eastside Company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. The component can be purchased from an outside supplier for $11 per unit. A related cost study indicates that the total cost of the component includes fixed costs equal to 25% of the variable costs involved. a. Should Eastside buy the component if it cannot otherwise use the released capacity? Present your answer in the form of differential analysis. b. What would be your answer to requirement (a) if the released capacity could be used in a project that would generate $20,000 of contribution margin?
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases. a. Direct material cost per unit. b. Fees for using a patent of $500,000 plus $0.25 for each unit produced. c. Salary of quality control supervisor. d. Straight-line depreciation per unit on factory equipment. e. Total direct materials cost.
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
[The following information applies to the questions displayed below.] The following data are available for product no. CK74, manufactured and sold by Ruby Corporation: Maximum capacity with present facilities 3,500 units Total fixed cost (per period) $ 798,000 Variable cost per unit $ 115.00 Sales price per unit $ 185.00 The contribution margin per unit for product no. CK74 is:
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 490 830 970 Total costs Variable costs $ 113,190 $ ? $ ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? $ 507.75 ? Required:1. Complete the table. 2. Calculate Hermosa’s contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $730. 4. Calculate Hermosa’s break-even point in units and sales revenue.
Green Cut company provided the following data for its three products' selling price, variable cost, and contribution margin per unit: Product A - P20, P14, P6; Product B - P16, P7, P9; Product C - P22, P16, P6. Total fixed cost is P1,000,000. The sales mix is 4:4:7. In the break-even units, what is the number of units of product B that must be produced and sold? 42,017 39,216 63,025 68,627
Please do not provide answer in image formate, thank you. itchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: Use the equation method. Use the contribution margin per unit approach. Use the contribution margin ratio approach. Prepare a contribution margin income statement for the break-even sales volume.
XYZ Co. has the following sales mix for its three products: A, 20%;B 35%; and C45%. Fixed costs total $ 400,000 ar the weighted average contribution margin is $100 . How many units of product B must be sold to break- even? a. 4,000 b. 800. c. None of the answers is correct. d. 1,800. e. 14,00
A company provided the following data for its three products' selling price, variable cost, and contribution margin per unit: Product A - P20, P14, P6; Product B - P16, P7, P9; Product C - P22, P16, P6. Total fixed cost is P1,000,000. The sales mix is 4:4:7. In the break-even units, what is the number of units of product B that must be produced and sold? a. 63,025 b. 68,627 c. 42,017 d. 39,216
Keller Company sells product ZR101 for $25 per unit. The cost of one unit of ZR101 is $18. The estimated cost to complete a unit is $4, and the estimated cost to sell is $6. At what amount per unit should product ZR101 be reported, applying lower-of-cost-or-net realizable value?
The Xyden Company sells grips for P6 per unit. Variable costs are P2 per unit. Fixed costs are P37,500. How many grips must be sold to realize a profit before income taxes of 15% of sales? a. 9,375 units b. 9,740 units c. 11,029 units d. 12,097 units
Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; ?Annual fixed costs $96,000. What is the contribution margin percentage 47.5% a O 60% b 70% CO 52.5% d O None of the given answerse

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