Answered: Selling price per unit $…

Selling price per unit $ 100 Variable expenses per unit $ 40 Fixed expenses per month $ 60,000 The contribution margin ratio is: a. 40% b. 60% c. 62.5% d. 70%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5MC: A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the...

See similar textbooks

Related questions

Q: Projected Sales: 25,000 Average Sales Price per Unit: Average Variable Cost per Unit: 56.00 $ 38.00…

A: Profit is the revenue that is generated by the company after paying all its costs, that includes…

Q: C. Construct a contribution margin income statement for the month of September when they will sell…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: Whirly Corporation’s contribution format income statement for the most recent month is shown below:…

A: 1) Given sales = 10,000 units Revised sales = 10,000 + 100 = 10,100 units Particulars Amount $…

Q: Contribution Margin Harry Company sells 40,000 units at $36 per unit. Variable costs are $22.32 per…

A: a. Contribution margin = Sales - variable cost = $36-22.32 = $13.68 Contribution margin ratio =…

Q: Menlo Company distributes a single product. The company's sales and expenses for last month follow:…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…

A: Variable cost is the required cost of production that changes with the change in level of output.…

Q: ABCS contribution format income statement for last month: Sales Variable expenses Contribution…

A: Net Operating income=Sales-(Variable expenses+Fixed expenses)

Q: Expected sales Variable costs 10,000 units @ £8 £5 per unit £21,000 Fixed costs Assume Sales volume…

A: The Break even point is the point of No profit no loss as at this point the firm is earning a zero…

Q: The BX55160 company has provided its contribution format income statement for a given month. Sales…

A: Selling price per unit = $415,800/6300 Selling price per unit = $66 Variable expense per unit =…

Q: Data Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials $50 $1…

A: In Variable Costing Income Statement, fixed production Overhead cost are considered period cost and…

Q: Contribution Margin Ferrante Company sells 27,000 units at $25 per unit. Variable costs are $16.00…

A: Answer a) Calculation of Contribution Margin ratio Contribution margin ratio = Contribution margin…

Q: Selling price per unit $ 100 Variable expenses per unit $ 40 Fixed…

A: Break even point means a situation where there is neither profit nor loss.

Q: Menlo Company distributes a single product. The company's sales and expenses for last month follow:…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…

A: Fixed cost remains constant at all the level of volume of sales.

Q: Raven Inc. sells a single product for $51. Variable costs include $28.23 for each unit plus a $9…

A: Contribution margin percentage = ( Selling price - Variable cost ) / Selling price Variable cost…

Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…

A: solution:- 1) Calculation of Net operating income if sales volume increased by 50 units as follows:-

Q: Contribution Margin Harry Company sells 19,000 units at $30 per unit. Variable costs are $22.20 per…

A: Contribution margin ratio - It is a ratio that shows the sum of the amount available to cover fixed…

Q: Annual demand in units 260,000 units Working days per year Lead time in days 260 12 Ordering cost…

A: Economic order quantity also known as economic purchase quantity, is the order quantity that…

Q: Sales price per unit 1,800 Variable costs per unit (a) Total fixed costs 232,200 Target profit…

Q: Contribution Margin Ferrante Company sells 31,000 units at $18 per unit. Variable costs are $10.62…

A: Contribution Margin is difference between sales value and variable cost. It can also be defined as…

Q: The BX68490 company has provided its contribution format income statement for a given month. Sales…

A: general points to remember - 1) fixed cost will remain constant irrespective of the level of…

Q: White Lake Inc. produces and sells a single product. Data concerning that product appear below:…

A: 1. BREAK EVEN SALES : = (FIXED COST X SALES) / CONTRIBUTION PER UNIT 2. UNITS TO SELL TO ATTAIN…

Q: Contribution Margin Sally Company sells 37,000 units at $16 per unit. Variable costs are $10.40 per…

A: (a) contribution margin ratio = unit contribution margin / selling price per unit unit…

Q: Contribution Margin Sally Company sells 15,000 units at $24 per unit. Variable costs are $20.40 per…

A: Contribution margin ratio = (Contribution Margin per unit/ Selling Price per unit) Contribution…

Q: Menlo Company distributes a single product. The company’s sales and expenses for last month follow:…

A: At break even point, the company neither earns profit nor suffer losses. Here, the total cost of…

Q: Variable cost per unit = $5.00 July fixed cost per unit = $7.00 Units sold and produced in July =…

A: Total estimated cost = (Variable cost per unit*No. of unitsproduced and sold) + (Fixed cost per…

Q: Contribution Margin Harry Company sells 32,000 units at $38 per unit. Variable costs are $28.12 per…

A: Contribution Margin: It is defined as the difference between the sales and the variable cost. In…

Q: reported this year: Sales revenue P 10,000,000 Variable costs 6,000,000 Fixed costs 3,200,000 If…

A: Calculation of Contribution Margin per Unit = [Sales Revenue - Variable Cost] / Number of Units =…

Q: equired (show your workings for each question): A) Prepare a contribution margin income statement…

A: Solution Given A1 A2 total Selling price per unit 100 12 Variable cost…

Q: Contribution Margin United Merchants Company sells 34,000 units at $12 per unit. Variable costs are…

Q: Whirly Corporation's contribution format income statement for the most recent month is shown b Total…

A: Here in this question we are require to calculate net operating income under different scenario. Net…

Q: Emeka Company has provided the following information: Sales price per unit Variable cost per unit…

A: The term Contribution is considered under the Cost volume Profit method. Contribution means that the…

Q: a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to…

A: Contribution Margin ratio: It is a ratio that measures the contribution margin generated by the…

Q: sales per unit $15 $100 variable expenses per unit $9 $20…

A: Contribution margin = sales - variable cost

Q: Contribution Margin Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per…

A: Contribution margin ratio = Unit Contribution margin/Selling price Unit contribution margin =…

Q: Selling price per unit Variable expenses per unit Fixed expenses per month 2$ 24 $60,000 100 40 The…

A: Break-even point: The point where there is neither profit nor loss is called the break-even point.…

Q: 6.Dalian Company provides the following information: Price per unit $20.00 Variable cost per unit…

A: Break even point in units = Fixed cost/contribution margin per unit

Q: Contribution Margin Willie Company sells 39,000 units at $33 per unit. Variable costs are $22.11…

A: The Break-even point is the point where the company incurs no loss no profit. The contribution…

Q: Whirly Corporation’s contribution format income statement for the most recent month is shown below:…

A: Formula: Contribution margin = Sales - variable cost

Q: Data Selling price per unit Manufacturing costs: Variable per unit produced: $50 Direct materials…

A: Units produced in year 2 are sold first. Rest LIFO method is adopted

Q: Whirly Corporation’s contribution format income statement for the most recent month is shown below:…

A: Net Operating Income: Net operating income (NOI), often known as net operating income (NOI), is a…

Q: Marginal Costing (2-D) Cost volume profit analysis When current profits have to be maintained in…

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

Q: Selling price per unit $ 100 Variable expenses per unit $ 40 Fixed…

A: In the contribution margin income statement, we need to deduct all the variable expenses from the…

Q: The following is last month's contribution format income statement: Sales (12 000 units)…

A: Here in this question, we are required to calculate margin of safety. It is a ratio that measures…

Q: Explain in detail the meaning of Contribution Margin.

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…

A: Revised net operating income: = Existing net operating income + (increase in sales volume *…

Q: United Merchants Company sells 20,000 units at $19 per unit. Variable costs are $16.15 per unit, and…

A: Variable cost are costs that vary with the level of production whereas fixed cost are cost that…

Q: of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable…

A: The break even sales are the sales where business earns no profit no loss during the period.

Question

Selling price per unit $ 100
Variable expenses per unit $ 40
Fixed expenses per month $ 60,000

The contribution margin ratio is:

40%

60%

62.5%

70%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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. $110
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
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%
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. 120
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
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. 2,000
Variable costing income statement and contribution margin analysis for a service company The actual and planned data for Underwater University for the Fall term were as follows: Actual Planned Enrollment 4,500 4,125 Tuition per credit hour 120 135 Credit hours 60,450 43,200 Registration, records, and marketing cost per enrolled student 275 275 Instructional costs per credit hour 64 60 Depreciation on classrooms and equipment 825,600 825,600 Registration, records, and marketing costs vary by the number of enrolled .students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. A. Prepare a variable costing income statement showing the contribution margin and income from operations for the Fall term. B. Prepare a contribution margin analysis report comparing planned with actual performance for the Fall term.
Assume that the moving activity has an expected cost of 80,000. Expected direct labor hours are 20,000, and expected number of moves is 40,000. The best activity for moving is a. 4 per move. b. 1.33 per hour-move. c. 4 per hour. d. 2 per move. e. e None of these.
Refer to Cornerstone Exercise 7.10. (Round percentages to four significant digits and cost allocations to the nearest dollar.) Required: 1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. 2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. 3. What if it cost 2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products?
Selling price per unit $ 100Variable expenses per unit $ 40Fixed expenses per month $ 60,000 Operating income at a volume of 4,000 units per month is: a. $240,000 b. $200,000 c. $180,000 d. $120,000
Selling price per unit $ 100Variable expenses per unit $ 40Fixed expenses per month $ 60,000 The break-even point in terms of total revenues per month is: a. $30,000 b. $60,000 c. $75,000 d. $100,000