Type 2 Type 3 Type 1 P250 P375 P450 P500 P600 P750 2050 1500 1300 a. Calculate the separate contribution margin ratio for each product b. Calculate the weighted-average contribution margin ratio of the company as a whole. c. If the company's fixed costs are P41,700 per month, calculate the breakeven distribution of products. Variable Cost per Unit Price per Unit Unit Sold

Type 2 Type 3 Type 1 P250 P375 P450 P500 P600 P750 2050 1500 1300 a. Calculate the separate contribution margin ratio for each product b. Calculate the weighted-average contribution margin ratio of the company as a whole. c. If the company's fixed costs are P41,700 per month, calculate the breakeven distribution of products. Variable Cost per Unit Price per Unit Unit Sold

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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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%
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
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 $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Question 1: A company produces and sells two products with the following costs: Product X Product Y Variable costs per Br. of sales Fixed costs per period Br.0.45 Br.1 212 000 Br.0.6 Br.1 212 000 Total sales revenue is currently generated by the two products in the following proportions: Product X 70% Product Y 30% Required: Calculate the break-even sales revenue per period, based on the sales mix assumed Prepare a profit–volume chart of the above situation for sales revenue up to Br.4 000 Show on the same chart the effect of a change in the sales mix to product X 50%, product Y 50%. Clearly indicate on the chart the break-even point for each situation. Of the fixed costs 455 000 are attributable to product X. Calculate the sales revenue required on product X in order to recover the attributable fixed costs and provide a netcontribution of Br.700 000 towards general fixed costs and profit.
QUESTION 1 B Limited produces and sells the following three products: Product X Y Z Selling price per unit (N$) 16 20 10 Variable cost per unit(N$) 5 15 7 Contribution per unit(N$) 11 5 3 Budgeted Sales Volume (units) 50,000 10,000 100,000 The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix. Required: (a)Calculate the weighted average contribution sales ratio (C/S ratio) of the products? (b)Calculate the break-even sales revenue required AND Calculate the margin of safety. (c)Calculate the amount of sales revenue required to generate a profit of N$600000. (d)Draw a multiproduct profit volume chart assuming the budget is achieved.
Problem II. Omega Enterprises sells two products, Model E100 and F900. Monthly sales and the contribution margin ratios for the two products, follow: Product E100 F900 Total Sales P 700,000 P 300,000 P 1,000,000 Contribution margin ratio 60% 70% The Company’s fixed expenses total P598,500 per month. What is the company’s total contribution margin ratio? What is the company’s total net operating income? The break-even point for the company based on the current sales mix is ______.
Ma2. Q4 Bundoora Enterprises operates a single-product entity. Data relating to the product for 2020 were as follows: Annual Volume 45,000 Units Selling price per unit $65 Variable manufacturing cost per unit $25 Annual fixed manufacturing costs $155,000 Variable marketing and distribution costs per unit $15 Annual fixed non-manufacturing costs $445,000 a) Calculate and interpret the break-even in units for 2020. b) Calculate and interpret the margin of safety in both units and sales dollars. c) Calculate and interpret the profit achieved in 2020.d) Changes in marketing strategy are planned for 2021. This would increase variable marketing and distribution costs by $15 per unit and reduce fixed non-manufacturing costs by $100,000 per year. Calculate and interpret the units that would need to be sold in 2021 to achieve the same profit as in 2020.
i) the marginal revenue function for a company's product is MR = 40,000 - 4x ii) where x equals the number of units sold. if total revenue equal 0 when no units are sold, determine the total revenue function for the product. The function describing the marginal cost ( in dollars ) for producting a product is MC =8x +800 When x equals the number of units produced. it is known that cost equals $80,000 when 40 units are produced. determine the total cost function. iii) the function describing the marginal profit from producing and selling a product is MP = -6x + 450 when x equals the number of units and MP is the marginal profit measured in dollars. when 100 units are produced and sold, total profit equals $5000. determine the total profit function. iv) the functions describing the marginal profit from producing and selling a product is…
Question 2 XYZ Company produces and sells only two products since year 2000. Data concerning those products for March 2020 appear below:           Product A Product B March Sales $25,000 $27,000 March Variable costs $7,000 $8,600 March Fixed costs $32,860 Required: As a Senior Manager at XYZ Company, your General Manager asked you to determine the total sales of the company in $ for product A and for product B that should be achieved to cover both variable and fixed costs for the month of March by using the company's contribution margin. The level of competition in the market was acceptable and manageable by the Company. In March, 2020, a new potential competitor is doing a market research to decide on entering the market with a product similar to Product A. The General Manager asked for your advice if the company should shift the sales mix toward Product B with no change in total sales (as the sales of product B is more than product…
Grease Company makes three products. Following are the revenue and cost data for a typical month. PRODUCTS X Y Z TOTAL Sales P300 P500 P800 P1,600 Variable Costs 100 200 400 700 Contribution Margin P200 P300 P400 P900 Fixed Costs: Avoidable P80 P100 P120 P300 Common, allocated    on the basis of peso sales 60 100 160 320 Total Fixed Costs P140 P200 P280 P620 PROFIT P60 P100 P120 P280 REQUIRED: Answer each of the following questions independently. What will total profit be if the company simply drops Product X? The company is considering selling the new product, Product P, in place of Product X. Product P will sell for P7 per unit, have variable costs of P5 per unit, and have avoidable fixed costs of P130. How many units of Product P would be the company has to sell to maintain its total income of P280? The company charges P10 per unit for…
Grease Company makes three products. Following are the revenue and cost data for a typical month. PRODUCTS X Y Z TOTAL Sales P300 P500 P800 P1,600 Variable Costs 100 200 400 700 Contribution Margin P200 P300 P400 P900 Fixed Costs: Avoidable P80 P100 P120 P300 Common, allocated    on the basis of peso sales 60 100 160 320 Total Fixed Costs P140 P200 P280 P620 PROFIT P60 P100 P120 P280 REQUIRED: Answer each of the following questions independently. Closer analysis reveals that X, Y, and Z are joint products of a joint process and all are now being processed beyond the split-off point. The cost of the joint process including raw material, is the P320 joint allocated fixed cost. All of the split-off point. If the sales values of X, Y, and Z at split-off are P110, P220, and P230, respectively, could be the company increase its profits by selling…