Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent Use a minus sign or parentheses to enter an operating loss.) Data Table Nantz Net Sales Revenue %$4 2.480,000 Variable Costs Company Fixed Costs Nantz Smith Eastman Whitman Operating Income (Loss) 315,800 Net Sales Revenue $ 2,480,000 $ (d $ 284,000 $6) Units Sold 155.000 Variable Costs (a) 189,000 142,000 151,200 Contribution Margin per Unit 24 3.20 Fixed Costs (b) 168,000 280.000 (k) Contribution Margin Ratio Operating Income (Loss) $4 315.800 $ (e) $ (9) S 87.600 Units Sold 155,000 10,500 (h) (1) Contribution Margin per Unit $ 3.20 $ () $ 71.00 $ 18.00 Contribution Margin Ratio (c) 60% 40% Requirements Print Done 1 Fill in the blanks for each missing value (Round the contribution margin per unit to the nearest cent.) 2. Which company has the lowest breakeven point in sales dollars? 3. What causes the low breakeven point?

Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent Use a minus sign or parentheses to enter an operating loss.) Data Table Nantz Net Sales Revenue %$4 2.480,000 Variable Costs Company Fixed Costs Nantz Smith Eastman Whitman Operating Income (Loss) 315,800 Net Sales Revenue $ 2,480,000 $ (d $ 284,000 $6) Units Sold 155.000 Variable Costs (a) 189,000 142,000 151,200 Contribution Margin per Unit 24 3.20 Fixed Costs (b) 168,000 280.000 (k) Contribution Margin Ratio Operating Income (Loss) $4 315.800 $ (e) $ (9) S 87.600 Units Sold 155,000 10,500 (h) (1) Contribution Margin per Unit $ 3.20 $ () $ 71.00 $ 18.00 Contribution Margin Ratio (c) 60% 40% Requirements Print Done 1 Fill in the blanks for each missing value (Round the contribution margin per unit to the nearest cent.) 2. Which company has the lowest breakeven point in sales dollars? 3. What causes the low breakeven point?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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Mario Company is considering discontinuing a product. The costs of the product consist of $20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. What is the differential cost? A. $19,000 B. $15,000 C. $35,000 D. $39,000
When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
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The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of production of product 1, and x2 represents units of production of product 2. Producing one unit of product 1 requires 4 labor-hours, and producing one unit of product 2 requires 6 labor-hours. Currently, 24 labor-hours are available. The cost of labor-hours is already factored into the profit function, but it is possible to schedule overtime at a premium of 5 per hour. a. Formulate an optimization problem that can be used to find the optimal production quantity of products 1 and 2 and the optimal number of overtime hours to schedule. b. Solve the optimization model you formulated in part (a). How much should be produced and how many overtime hours should be scheduled?
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.
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Youngstown Construction plans to discontinue its rooting segment. Last year, this segment generated a contribution margin of $65.000 and incurred $70.000 in fixed costs. Discontinuing the segment will allow the company to avoid half of the fixed costs. What effect is expected to occur to the companys overall profit? A. a decrease of $5,000 B. a decrease of $30,000 C. a decrease of $5,000 D. an increase of $30,000
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