Contribution margin per unit and contribution margin ratio: Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales. The formula used to calculate contribution margin per unit is – C o n t r i b u t i o n M a r g i n p e r u n i t = S a l e p r i c e p e r u n i t – V a r i a b l e c o s t s p e r u n i t The formula used to calculate contribution margin ratio is – C o n t r i b u t i o n m a r g i n r a t i o = ( C o n t r i b u t i o n m a r g i n S a l e s R e v e n u e ) X 100 Break-even point: The break-even point can be defined as the point where the total sales revenue is equal to the total costs involved. The break-even point is calculated as – B r e a k e v e n p o i n t ( i n U n i t s ) = F i x e d C o s t s C o n t r i b u t i o n m a r g i n p e r u n i t B r e a k e v e n p o i n t ( i n d o l l a r s ) = F i x e d C o s t s C o n t r i b u t i o n m a r g i n r a t i o Requirement 1 To determine: Contribution margin per package and Contribution margin ratio

Question

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Answer 1

Question

Chapter 21, Problem E21.36E

To determine

Contribution margin per unit and contribution margin ratio: Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

The formula used to calculate contribution margin per unit is –

$C o n t r i b u t i o n M a r g i n p e r u n i t = S a l e p r i c e p e r u n i t - V a r i a b l e c o s t s p e r u n i t$

The formula used to calculate contribution margin ratio is –

$C o n t r i b u t i o n m a r g i n r a t i o = (\frac{C o n t r i b u t i o n m a r g i n}{S a l e s R e v e n u e}) X 100$

Break-even point: The break-even point can be defined as the point where the total sales revenue is equal to the total costs involved. The break-even point is calculated as –

$B r e a k e v e n p o i n t (i n U n i t s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (i n d o l l a r s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement 1

To determine:

Contribution margin per package and Contribution margin ratio

To determine

Requirement 2:

To determine:

Break-even point in packages and dollars

Expert Solution & Answer

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Answer 2

Question

Chapter 21, Problem E21.36E

To determine

Contribution margin per unit and contribution margin ratio: Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

The formula used to calculate contribution margin per unit is –

$C o n t r i b u t i o n M a r g i n p e r u n i t = S a l e p r i c e p e r u n i t - V a r i a b l e c o s t s p e r u n i t$

The formula used to calculate contribution margin ratio is –

$C o n t r i b u t i o n m a r g i n r a t i o = (\frac{C o n t r i b u t i o n m a r g i n}{S a l e s R e v e n u e}) X 100$

Break-even point: The break-even point can be defined as the point where the total sales revenue is equal to the total costs involved. The break-even point is calculated as –

$B r e a k e v e n p o i n t (i n U n i t s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (i n d o l l a r s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement 1

To determine:

Contribution margin per package and Contribution margin ratio

To determine

Requirement 2:

To determine:

Break-even point in packages and dollars

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem E21.36E

To determine

Contribution margin per unit and contribution margin ratio: Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

The formula used to calculate contribution margin per unit is –

$C o n t r i b u t i o n M a r g i n p e r u n i t = S a l e p r i c e p e r u n i t - V a r i a b l e c o s t s p e r u n i t$

The formula used to calculate contribution margin ratio is –

$C o n t r i b u t i o n m a r g i n r a t i o = (\frac{C o n t r i b u t i o n m a r g i n}{S a l e s R e v e n u e}) X 100$

Break-even point: The break-even point can be defined as the point where the total sales revenue is equal to the total costs involved. The break-even point is calculated as –

$B r e a k e v e n p o i n t (i n U n i t s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (i n d o l l a r s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement 1

To determine:

Contribution margin per package and Contribution margin ratio

To determine

Requirement 2:

To determine:

Break-even point in packages and dollars

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem E21.36E

To determine

Contribution margin per unit and contribution margin ratio: Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

The formula used to calculate contribution margin per unit is –

$C o n t r i b u t i o n M a r g i n p e r u n i t = S a l e p r i c e p e r u n i t - V a r i a b l e c o s t s p e r u n i t$

The formula used to calculate contribution margin ratio is –

$C o n t r i b u t i o n m a r g i n r a t i o = (\frac{C o n t r i b u t i o n m a r g i n}{S a l e s R e v e n u e}) X 100$

Break-even point: The break-even point can be defined as the point where the total sales revenue is equal to the total costs involved. The break-even point is calculated as –

$B r e a k e v e n p o i n t (i n U n i t s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (i n d o l l a r s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement 1

To determine:

Contribution margin per package and Contribution margin ratio

To determine

Requirement 2:

To determine:

Break-even point in packages and dollars

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem E21.36E

To determine

Contribution margin per unit and contribution margin ratio: Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

The formula used to calculate contribution margin per unit is –

$C o n t r i b u t i o n M a r g i n p e r u n i t = S a l e p r i c e p e r u n i t - V a r i a b l e c o s t s p e r u n i t$

The formula used to calculate contribution margin ratio is –

$C o n t r i b u t i o n m a r g i n r a t i o = (\frac{C o n t r i b u t i o n m a r g i n}{S a l e s R e v e n u e}) X 100$

Break-even point: The break-even point can be defined as the point where the total sales revenue is equal to the total costs involved. The break-even point is calculated as –

$B r e a k e v e n p o i n t (i n U n i t s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (i n d o l l a r s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement 1

To determine:

Contribution margin per package and Contribution margin ratio

To determine

Requirement 2:

To determine:

Break-even point in packages and dollars

Answer 6

Chapter 21, Problem E21.36E

To determine

Contribution margin per unit and contribution margin ratio: Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

The formula used to calculate contribution margin per unit is –

$C o n t r i b u t i o n M a r g i n p e r u n i t = S a l e p r i c e p e r u n i t - V a r i a b l e c o s t s p e r u n i t$

The formula used to calculate contribution margin ratio is –

$C o n t r i b u t i o n m a r g i n r a t i o = (\frac{C o n t r i b u t i o n m a r g i n}{S a l e s R e v e n u e}) X 100$

Break-even point: The break-even point can be defined as the point where the total sales revenue is equal to the total costs involved. The break-even point is calculated as –

$B r e a k e v e n p o i n t (i n U n i t s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (i n d o l l a r s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement 1

To determine:

Contribution margin per package and Contribution margin ratio

Answer 7

Chapter 21, Problem E21.36E

To determine

Contribution margin per unit and contribution margin ratio: Contribution margin is the difference between sales and the variable cost. Contribution margin ratio can be defined as the difference between sales and variable cost expressed as the percentage of sales.

The formula used to calculate contribution margin per unit is –

$C o n t r i b u t i o n M a r g i n p e r u n i t = S a l e p r i c e p e r u n i t - V a r i a b l e c o s t s p e r u n i t$

The formula used to calculate contribution margin ratio is –

$C o n t r i b u t i o n m a r g i n r a t i o = (\frac{C o n t r i b u t i o n m a r g i n}{S a l e s R e v e n u e}) X 100$

Break-even point: The break-even point can be defined as the point where the total sales revenue is equal to the total costs involved. The break-even point is calculated as –

$B r e a k e v e n p o i n t (i n U n i t s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (i n d o l l a r s) = \frac{F i x e d C o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement 1

To determine:

Contribution margin per package and Contribution margin ratio

Answer 8

To determine

Requirement 2:

To determine:

Break-even point in packages and dollars

Answer 9

To determine

Requirement 2:

To determine:

Break-even point in packages and dollars

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

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Requirement 2:

To determine:

Break-even point in packages and dollars

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Requirement 2: To determine: Break-even point in packages and dollars

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Chapter 21 Solutions

Requirement 2:

To determine:

Break-even point in packages and dollars