Wimberley Ltd provides the following data regarding it four product lines: Product A B c D Selling price ($) 10 Variable costs per unit ($) Sales mix 35 55 91 3 16 29 65 60 20 15 5 Required Calculate, to two decimal places, the weighted average contribution margin per unit (WACMU).

Wimberley Ltd provides the following data regarding it four product lines: Product A B c D Selling price ($) 10 Variable costs per unit ($) Sales mix 35 55 91 3 16 29 65 60 20 15 5 Required Calculate, to two decimal places, the weighted average contribution margin per unit (WACMU).

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 18MC: Beaucheau Farms sells three products (E, F, and G) with a sale mix ratio of 3:1:2. Unit sales price...

See similar textbooks

Related questions

Q: Umstead Company provides the following information Targeted operating income $52.430 Selling price…

A: The contribution margin per unit is determined by subtracting variable cost per unit from the…

Q: A product has a sales price of $350 and a per-unit contribution margin of $139. What is the…

A: Formula: Contribution margin ratio = Per unit contribution margin / sales price per unit Division of…

Q: Company XYZ has three products A, B and C. The sales mix for products A, B and Care 7,5 and 4 units…

A: Break-even refers to covering all the costs without making a profit. At break-even point company…

Q: ABC Corp has the following information: Number of units: 3600 Sales Price per Unit $60 Variable…

A: Calculate the contribution margin per unit. Calculate the contribution margin ratio.

Q: Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and…

A: Variable cost per unit = Change in total cost Change in units Total Fixed cost = Total Cost -…

Q: Company XYZ has three products A, B and C. The sales mix for products A, B and C are 8, 6 and 5…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: Leeks Company's product has a contribution margin per unit of $14.64 and a contribution margin ratio…

A: Contribution margin ratio is calculated by dividing Contribution margin of the product by the…

Q: Net income under variable costing is P 30,000. Data shows: the total manufacturing cost per unit is…

A: The difference between the variable costing and absorption costing is that the fixed overhead costs…

Q: The following data are available for product number CK74, manufactured and sold by Ruby Corporation:…

A: Lets understand the basics. Contribution is a amount remain of sales after deducting variable cost…

Q: Which of the following types of cost is shown in the cost data below? Cost per Number of Unit Units…

A: The fixed cost refers to the amount of cost which do not change with a change in the number of…

Q: Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and…

A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…

Q: Dilts Company has a unit selling price of $670, variable costs per unit of $450, and fixed costs of…

A: Break Even Point: The break even point is the level of production at which the costs of production…

Q: ABC Company provides the following information about its product: Targeted operating income…

A: We should first understand about the contribution margin ratio to solve this question. Contribution…

Q: A company provided the following data for its three products' selling price, variable cost, and…

A: Breakeven sales revenue is that level of sales revenue at which business is only recovering its…

Q: The following information is for LaPlanche Industries Inc.: East West Sales volume (units):…

A: Contribution margin: The contribution margin refers to the difference between the selling price and…

Q: Compute the contribution margin ratio using the following data: sales, $5,000; total variable cost,…

A: This ratio indicates the amount of revenue needed to cover the fixed costs of the business.

Q: JPS Company manufactures and sells three products. Relevant per unit data concerning each product…

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

Q: Jamison Company uses the total cost method of applying the cost-plus approach to product pricing.…

A: Mark-up % on total cost = Desired Profit / Total Costs x 100

Q: Suppose that a firm makes two products, A and B. The sales mix in units for the period is 70% for A…

A: Weighted average contribution margin:The weighted average contribution margin is the average…

Q: The following information comes from the companies accounting records at a sales level of $50,000…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Mondstadt Corporation sells two products, X and Y at a rate of 3 units and 5 uni respectively. The…

A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first three…

Q: According to following information, which of the following is the total cost (OMR) and total cost…

A: Cost Equation form and Detailed explanation is given below,

Q: Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and…

A: High - low method is used to divide variable cost and fixed cost from the limited data available on…

Q: A product has a contribution margin per unit of $12, a contribution margin ratio of 30 percent, and…

A: The contribution margin is the excess value of revenue over the variable cost. The contribution…

Q: Dalian Company provides the following information: Price per uit Variable cost per uniti Fixed cost…

A: The contribution margin indicates the excess amount available for recovering the fixed cost.

Q: Steven Company has fixed costs of $181,104. The unit selling price, variable cost per unit, and…

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

Q: 11. George Corporation has the following information for the current year: Selling price per unit…

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

Q: Fixed manufacturing costs are $10 per unit, and variable manufacturing costs are $25 per unit.…

A: a. Operating income from Variable Costing is less compared to operating income from Absorption…

Q: Lamp Company has the following cost-volume-profit (CVP) data: Breakeven point, in units 3,000…

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

Q: X Company had the following information available for 2021: Selling price per unit Variable cost per…

A: Unit contribution margin = Unit selling price - Unit variable cost Total contribution margin = No.…

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: Wildhorse Company has a unit selling price of $730, variable costs per unit of $500, and fixed costs…

A: Break-even-point is a point where the company suffers no gain and no loss. If a company sale below…

Q: Steven Company has fixed costs of $221,216. The unit selling price, variable cost per unit, and…

A: Weighted average contribution margin per unit = (Contribution margin for Product X*sales mix %) +…

Q: Cullumber Company accumulates the following data concerning a mixed cost, using miles as the…

A: Formulas: Variable cost per unit = Change in total cost / Change in miles -----------------------…

Q: Complete the cost schedule below. When computing the cost per unit, round to two decimal places.…

A: Variable costs increase or decrease depending on a company's production volume. Fixed costs does not…

Q: Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost)/(Highest activity units -…

Q: Hammond Company produces a single product with a price of ₱12/unit, variable cost per unit of ₱3,…

A: Given : Fixed Cost = P 7,200 Selling Price = $12 Variable cost = $3 Contribution = Selling Price…

Q: Contribution Margin by Segment The following information is for La Planche Industries Inc.: East…

Q: Salem Company has the following information for tables production 1,800 S1,900 1,140 Number of units…

A: Contribution margin per unit = Sales price per unit - Variable cost per unit

Q: Steven Company has fixed costs of $443,940. The unit selling price, variable cost per unit, and…

A: The Numerical has covered the concept of Break-Even Analysis for Multiple products. In the case of…

Q: Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: :Salem Company has the following information for tables production 1,800 $1,900 1,140 Number of…

A: Unit contribution margin can be calculated by deducting the variable cost per unit from the unit…

Q: Given the following information for SAMAH Company, answer the following questions: RO 260 840 Units…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and…

A: Highest level of activity is at 90000 units. Lowest level of activity is at 60000 units

Q: Calculate: Contribution margin per unit Total contribution margin Contribution margin

A: Contribution margin per unit = Sales price per unit - Variable cost per unit Contribution margin =…

Q: Using the high low method, Hadley Company calculated the variable cost as $2.5 per unit. The high…

A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…

Q: Oriole Company has a unit selling price of $630, variable costs per unit of $410, and fixed costs of…

A: Break Even Point: The breakeven point is the level of production at which the costs of production…

Q: Emeka Company has provided the following information: Sales price per unit $58 Variable cost per…

A: Contribution means the difference between the selling price and variable cost . Selling price means…

Q: Medoc Company provides the following information about its single product Targeted operating income…

A: Target operating income: It refers to the desired amount of profit that a company expects to achieve…

Question

Wimberley Ltd provides the following data regarding its
four product lines:
A B C D
Product
Selling price ($) 10
Variable costs
per unit ($)
Sales mix
35
55
91
3
16
29
65
60
20
15
5
Required
Calculate, to two decimal places, the weighted average
contribution margin per unit (WACMU).

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1 Formula for weighted average contribution margin (WACMU)

VIEW

Step 2 Calculation of WACMU

VIEW

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

Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. A. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones. B. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. C. Determine the selling price of cellular phones. (Round markup to the nearest dollar.)
A product has a sales price of $175 and a per-unit contribution margin of $75. What is the contribution margin ratio?
Variable cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. a.Determine the variable costs and the cost amount per unit for the production and sale of 200,000 units of medical tablets. b.Determine the variable cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Contribution margin by segment The following information is for LaPlanche Industries Inc.: Determine the contribution margin for (A) Product YY and (B) West Region.
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)
Beaucheau Farms sells three products (E, F, and G) with a sale mix ratio of 3:1:2. Unit sales price are shown. What is the sales price per composite unit? A. $28.00 B. $20.00 C. $59.00 D. $41.00
The following information relates to the operations of a company; cost per unit from supplier- GH¢80, variable cost per unit GH¢40 and total fixed cost of GH¢300000. The company determines its selling price by adding a margin of 20%. What is the breakeven quantity?
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
What is the joint cost allocated to product Tab if the company employs relative sales value method? P300,000P200,000P192,000P288,000
Refer to Gjerty Corporation. Under absorption costing, the standardproduction cost per unit for the current year wasa. P11.30.b. P 7.30.c. P11.55.d. P13.05.
Following information is related to Product X of Zempa Company: Current replacement cost $230 Cost to distribute $42 Historical cost Normal profit margin Selling price $215 $36 $245 If lower-of-cost-or-market rule (LCM Rule) is applied, then the value of Product X that would be reported in the balance sheet is: a.
Given the price and cost data shown in the accompanying table for each of the three firms, F, G, and H: (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Firm F G H Sale price per unit $18.00 $21.00 $30.00 Variable operating cost per unit 6.75 13.50 12.00 Fixed operating cost 45,000 30,000 90,000 a. What is the operating breakeven point in units for each firm? b. How would you rank these firms in terms of their risk?