WHITECOTTON MGRL ACCTG (LL)
3rd Edition
ISBN: 9781260209570
Author: VALUE EDITION
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Question
Chapter 6, Problem 5.1GBP
To determine
Concept introduction:
Cost Volume Profit (CVP) Analysis:
The Cost Volume Profit analysis is the analysis of the relation between cost, volume, and profit of a product. It analyzes the cost and profits at the different level of production, in order to determine the breakeven point and required the level of sales to earn the desired profit.
Contribution margin means the margin that is left with the company after recovering variable cost out of revenue earned by selling smart phones. The formula for contribution margin is as follows:
Contribution margin = Sales - Variable cost.
Similarly contribution margin ratio = Contribution/sales
Weighted Average Contribution Margin:
Weighted Average Contribution Margin is calculated for two products with the help of following formula:
To calculate:
The weighted Average contribution margin per unit and weighted average contribution margin ratio
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Students have asked these similar questions
Lindstrom Company produces two fountain pen models. Information about its products follows:
Product A
Product B
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Less: Variable costs
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Lindstrom's fixed costs total $86,500.
Required:
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Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 4
Calculate the number of units that Lindstrom must sell to earn a $150,000 profit.
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Complete the template worksheet filling in all of the following:
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Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio:
LOADING...
(Click
the icon to view the table.)
Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.)
A
Number of units
2,833
units
Sale price per unit
$200
Variable costs per unit
80
Calculate:
Contribution margin per unit
Total contribution margin
Contribution margin ratio
%
Data Table
A
B
C
Number of units
2,833
units
3,100
units
5,600
units
Sale price per unit
$200
$3,000
$125
Variable costs per unit
80
1,500
100
Calculate:
Contribution margin per unit
Total contribution margin
Contribution margin ratio
Chapter 6 Solutions
WHITECOTTON MGRL ACCTG (LL)
Ch. 6 - Identify and briefly describe the assumptions of...Ch. 6 - Why should managers create a CVT graph?Ch. 6 - When considering a CVP graph, how is the...Ch. 6 - Your supervisor has requested that you prepare a...Ch. 6 - Why is it important for a company to know its...Ch. 6 - Explain the difference between unit contribution...Ch. 6 - A Company’s Cost structure can have a high...Ch. 6 - Prob. 8QCh. 6 - Prob. 9QCh. 6 - Bert Company and Ernie Company are competitors in...
Ch. 6 - Prob. 11QCh. 6 - Explain margin of safety. Why is important for...Ch. 6 - Give an example of a company to which margin of...Ch. 6 - Explain how a decision to automate a manufacturing...Ch. 6 - Explain degree of operating leverage and how it...Ch. 6 - Prob. 16QCh. 6 - Why is sales mix important to multiproduct CVP...Ch. 6 - Prob. 18QCh. 6 - Prob. 19QCh. 6 - Prob. 20QCh. 6 - Prob. 21QCh. 6 - Prob. 22QCh. 6 - Which of the following is not an assumption of CVP...Ch. 6 - Prob. 2MCCh. 6 - Prob. 3MCCh. 6 - Prob. 4MCCh. 6 - Prob. 5MCCh. 6 - Prob. 6MCCh. 6 - Prob. 7MCCh. 6 - Prob. 8MCCh. 6 - Prob. 9MCCh. 6 - Prob. 10MCCh. 6 - Prob. 1MECh. 6 - Prob. 2MECh. 6 - Prob. 3MECh. 6 - Prob. 4MECh. 6 - Prob. 5MECh. 6 - Calculating Break-Even Point After Cost Structure...Ch. 6 - Prob. 7MECh. 6 - Prob. 8MECh. 6 - Prob. 9MECh. 6 - Prob. 10MECh. 6 - Prob. 11MECh. 6 - Prob. 12MECh. 6 - Prob. 13MECh. 6 - Prob. 14MECh. 6 - Prob. 15MECh. 6 - Analyzing Multiproduct CVP Refer to the...Ch. 6 - Prob. 17MECh. 6 - Prob. 18MECh. 6 - Prob. 19MECh. 6 - Prob. 2ECh. 6 - Determining Break-Even Point, target Profit....Ch. 6 - Analyzing Changes in Price, Cost Structure, Degree...Ch. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Matching Terms to Definitions Match the...Ch. 6 - Analyzing Break-Even Point, Preparing CVP Graph,...Ch. 6 - Calculating Contribution Margin, Contribution...Ch. 6 - Prob. 10ECh. 6 - Calculating Target Profit, Margin of Safety,...Ch. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Analyzing Multiproduct CVP Biscayne’s Rent-A-Ride...Ch. 6 - Prob. 17ECh. 6 - Prob. 18ECh. 6 - Prob. 19ECh. 6 - Prob. 20ECh. 6 - Prob. 21ECh. 6 - Prob. 22ECh. 6 - Prob. 1.1GAPCh. 6 - Prob. 1.2GAPCh. 6 - Prob. 1.3GAPCh. 6 - Prob. 1.4GAPCh. 6 - Prob. 2.1GAPCh. 6 - Prob. 2.2GAPCh. 6 - Prob. 2.3GAPCh. 6 - Prob. 2.4GAPCh. 6 - Prob. 3.1GAPCh. 6 - Prob. 3.2GAPCh. 6 - Prob. 3.3GAPCh. 6 - Prob. 3.4GAPCh. 6 - Prob. 3.5GAPCh. 6 - Calculating Contribution Margin, Contribution...Ch. 6 - Prob. 4.1GAPCh. 6 - Analyzing Break-Even Point, Target Profit, Degree...Ch. 6 - Prob. 4.3GAPCh. 6 - Prob. 4.4GAPCh. 6 - Prob. 4.5GAPCh. 6 - Prob. 4.6GAPCh. 6 - Prob. 4.7GAPCh. 6 - Prob. 4.8GAPCh. 6 - Analyzing Multiproduct CVP, Break-Even Point,...Ch. 6 - Prob. 5.2GAPCh. 6 - Prob. 5.3GAPCh. 6 - Prob. 5.4GAPCh. 6 - Prob. 6.1GAPCh. 6 - Prob. 6.2GAPCh. 6 - Prob. 6.3GAPCh. 6 - Prob. 6.4GAPCh. 6 - Prob. 6.5GAPCh. 6 - Prob. 6.6GAPCh. 6 - Prob. 7.1GAPCh. 6 - Prob. 7.2GAPCh. 6 - Prob. 7.3GAPCh. 6 - Prob. 1.1GBPCh. 6 - Prob. 1.2GBPCh. 6 - Prob. 1.3GBPCh. 6 - Prob. 1.4GBPCh. 6 - Prob. 2.1GBPCh. 6 - Prob. 2.2GBPCh. 6 - Prob. 2.3GBPCh. 6 - Prob. 2.4GBPCh. 6 - Prob. 3.1GBPCh. 6 - Prob. 3.2GBPCh. 6 - Prob. 3.3GBPCh. 6 - Prob. 3.4GBPCh. 6 - Prob. 3.5GBPCh. 6 - Prob. 3.6GBPCh. 6 - Prob. 4.1GBPCh. 6 - Prob. 4.2GBPCh. 6 - Prob. 4.3GBPCh. 6 - Prob. 4.4GBPCh. 6 - Prob. 4.5GBPCh. 6 - Prob. 4.6GBPCh. 6 - Prob. 4.7GBPCh. 6 - Prob. 4.8GBPCh. 6 - Prob. 5.1GBPCh. 6 - Prob. 5.2GBPCh. 6 - Prob. 5.3GBPCh. 6 - Prob. 5.4GBPCh. 6 - Prob. 6.1GBPCh. 6 - Prob. 6.2GBPCh. 6 - Prob. 6.3GBPCh. 6 - Prob. 6.4GBPCh. 6 - Prob. 6.5GBPCh. 6 - Prob. 6.6GBPCh. 6 - Prob. 7.1GBPCh. 6 - Prob. 7.2GBPCh. 6 - Prob. 7.3GBP
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