INTRO TO MANAGERIAL ACCT-CONNECT ACCESS
8th Edition
ISBN: 9781260118742
Author: BREWER
Publisher: MCG
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Chapter 1, Problem 11E
Cost Behavior; Contribution Format Income Statement Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs per unit over the relevant range of 30,000 to 50,000 units is given below:
Required:
1. Complete the above schedule of the company’s total costs and costs per unit.
2. Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribution format income statement for the year.
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Required information
[The following information applies to the questions displayed below]
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the
relevant range of production is 500 units to 1,500 units):
$ 10,000
5,500
4,500
2,250
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
2,250
2. What is the contribution margin ratio?
Contribution margin ratio
Cost Behavior; Contribution Format Income Statement
Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs per unit over the relevant range of 30,000 to 50,000 units is given below:
Required:
1. Complete the above schedule of the company’s total costs and costs per unit.
2. Assume that the company produces and sells 45,000 units during the year at a selling price of $ 16 per unit. Prepare a contribution format income statement for the year.
Hudson Company reports the following contribution margin income statement. Hudson Company reports the following contribution margin income statement.A manufacturer's contribution margin income statement for the yearfollows. Required: Prepare a contribution margin income statement if the number of units sold (a) increases by 200 units and (b) decreases by 200 units. HUDSON COMPANY Contribution Margin Income Statement For Year EndeDecember 31 Required: 1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent) ?Margin of safety
Chapter 1 Solutions
INTRO TO MANAGERIAL ACCT-CONNECT ACCESS
Ch. 1 - What are the three major types of product costs in...Ch. 1 - Define the following: (a) Direct materials, (b)...Ch. 1 - Explain the difference between a product cost and...Ch. 1 - Distinguish between (a) a variable cost, (b) a...Ch. 1 - What effect does an increase in the activity level...Ch. 1 - Define the following terms: (a) Costbehavior and...Ch. 1 - What is meant by an activity base when dealing...Ch. 1 - Managers often assume a strictly linear...Ch. 1 - Distinguish between discretionary fixed costs and...Ch. 1 - Does the concept of the relevant range apply to...
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