Trillium, Inc. reports the following information for April: Alpha Beta Units sold 2,000 units 700 units Sales price per unit $300 $600 Variable manufacturing cost per unit 175 500 Sales commission per unit: Alpha: 8% of sales price 24 48 Beta: 8% of sales price What is the contribution margin ratio of Beta? (Round your answer to two decimal places.) OA. 8% OB. 41.67% OC. 8.67% OD. 16.67%

Trillium, Inc. reports the following information for April: Alpha Beta Units sold 2,000 units 700 units Sales price per unit $300 $600 Variable manufacturing cost per unit 175 500 Sales commission per unit: Alpha: 8% of sales price 24 48 Beta: 8% of sales price What is the contribution margin ratio of Beta? (Round your answer to two decimal places.) OA. 8% OB. 41.67% OC. 8.67% OD. 16.67%

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.
Guava Company has provided the following information: Sales price per unit $56 Variable cost per unit 12 Fixed costs per month $16,000 Calculate the contribution margin ratio. (Round your answer to two decimal places.) O 21.43% O 64.71% O 82.35% 78.57%
Assume the following cost information for Standard Corporation: Selling price per unit: $45.00 Variable costs per unit: $25.00 Total fixed costs: $100,000.00 Standard's goal for the month is to earn befote tax net income of $42.500. How many units must be sold to achieve this goal? a. 8.188 umits b. 2125 umits c. 1125 units d. 3.188 units
Edgewater Enterprises manufactures two products. Information follows: Product A Product B Sales price $ 12.00 $ 15.25 Variable cost per unit $ 6.20 $ 6.90 Product mix 30% 70% M6-17 [LO 6-6] es Required: Calculate Edgewater's weighted-average contribution margin per unit. Note: Round your intermediate calculations and final answer to 2 decimal places. Weighted average CM per unit
Delos, Inc. reports the following information for April: Sigma 2,000 units $300 150 Units sold Sales price per unit Variable manufacturing cost per unit Sales commission per unit: Sigma: 8% of sales price Gamma: 10% of sales price What is the contribution margin of Sigma? OA. $300,000 OB. $252,000 OC. $72,000 OD. $552,000 24 Gamma 700 units $600 480 60
Contribution Margin Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per unit, and fixed costs are $550,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Round to one decimal place.) % b. Unit contribution margin $__ per unit c. Income from operations $
Presented below is data of B Ltd for next year. XYZ Selling price ($) 3.0 2.0 4.0 Unit variable cost ($) 1.0 0.8 1.2 Standard labor hours 2.5 2 3.5 Maximum sales demand (units) 300 500 400 Total labor hours available for production in a month is 1000 hours. Requirements: 1. Compute unit contribution per unit of labor hour and show the product mix to maximize profit. 2. If the labor hours can be increased by 100 hours, how many units of product should the company produce to maximize profit?
Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income tax
Contribution Margin Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per unit, and fixed costs are $550,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Round to one decimal place.) fill in the blank 1 % b. Unit contribution margin $fill in the blank 2 per unit c. Income from operations
clarks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units produced in a month is 200, what would be the total cost? a) $7,170 b) $7008.50 c) $8,700 d) $7,800
Dalian Company provides the following information: Price per uit Variable cost per uniti Fixed cost per month How much is the contribution margin ratio? Select one: OA 12% O B. 40% 609 O OD. 6% ested Solutions Unit Fight