2. What is the expected contribution margin ratio? Round to the nearest whole percent.3. Determine the break-even sales in units and dollars.UnitsunitsDollars4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales?2$5. What is the expected margin of safety in dollars and as a percentage of sales?Dollars:Percentage: (Round to the nearest whole percent.)%6. Determine the operating leverage. Round to one decimal place. Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is thereforeassumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments duringthe year. A summary report of these estimates is as follows:EstimatedEstimated Variable CostFixed Cost(per unit sold)Production costs:Direct materials$22Direct labor14Factory overhead$414,00011Selling expenses:Sales salaries and commissions86,000Advertising29,100Travel6,500Miscellaneous selling expense7,1004Administrative expenses:Office and officers' salaries84,100Supplies10,3002Miscellaneous administrative expense9,7002Total$646,800$60It is expected that 7,920 units will be sold at a price of $200 a unit. Maximum sales within the relevant range are 10,000 units.Required:1.Prepare an estimated income statement for 20Y7.

Contribution Margin is the difference between Sales and Variable Cost. Break Even Point is a point…

2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. Units units Dollars 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 2$ 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars: $ Percentage: (Round to the nearest whole percent.) % 6. Determine the operating leverage. Round to one decimal place.

2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3. Determine the break-even sales in units and dollars. Units units Dollars 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 2$ 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars: $ Percentage: (Round to the nearest whole percent.) % 6. Determine the operating leverage. Round to one decimal place.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place.
What are the answers for the following? Construct a cost-volume-profit chart on your own paper. What is the break-even sales? What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage. Round to one decimal place.
Whirly has the following information for 2015. They sell Flying Carpets. Sales Contribution Margin Net Income 1. Complete a table for Whirly. Total $400,000 $150,000 $15,000 CVP and BEP Quantity 10,000 Flying Carpets Per Unit Ratio To Sales
Refer to the pictur ebelow: Find: 1. Total Cost of Product A under ABC System2. Total Cost of Product B under ABC System3. Selling Price per unit of Product B assuming profit margin of 20% above cost
On the break-even chart you can see the three variants of the break-even points. Name the items marked with numbers in the figure. Choose the correct answers. 7 10 6 Choose... Choose... 7 Choose... 1 Choose... 9. Choose... v Choose... Total cost function (linear) Turning point of profitability Target profit (expected profit) Turning point of economic efficiency Volume Amortisation Total cost - amortisation Total revenue function Turning point of liquidity Total cost + Target profit
4. What if the average price per unit increased to $25.50? Recalculate the following: a Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. C. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.
The ratio of contribution margin in dollars to the selling price is the: Select one: O profit margin. O break-even point in unit sales. O contribution margin ratio. O net income
Wildhorse sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The company income statement from last month is as follows: Total Per Unit Sales revenue $700,000 $50 Variable expenses 315,000 22.50 Contribution margin 385,000 $27.50 Fixed expenses 264,000 Operating income $ 121,000
On the CVP graph, the next unit sold will increase sales by an amount equal to the Select one: O a. Contribution margin ratio O b Selling price per unit minus the variable.costs per unit Oc Variable costs per unit Od. Difference between contribution margin and fixed costs O e. Selling price per unit
1. Calculate the contribution margin rate, the sales dollar breakeven point, and the unit sales breakeven point. 2. Use the following information to perform your calculations. a. Net Sales: $50,000.00 b. Contribution Margin: $20,000.00 c. Total Fixed Costs: $15,500.00 d. Unit Sales Price: $25.00 3. Provide the formula and write out the equation that you use for each calculation. a. Contribution Margin Rate: b. Sales Dollar Breakeven Point: C. Unit Sales Breakeven Point:
Please answer the blank areas including total expenses, income from operations, what is the expected margin of safety in dollars and as a percentage of sales (if required , round the percent to one decimal place) and determine the operating leverage . Thx ( please provide explanations).
Question: picture** A. What is Cullumber's contribution margin ratio? Its variable cost ratio? (Round ratios to 2 percentage places, e.g. 0.38 = 38%) Contribution margin ratio _____% Variable ratio ______% B1.) Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) Break even sales $_______ B2.) What is Cullumber's margin of safety? Margin of safety $_____ C.) If Cullumber's sales were to increase by $100,000 with no change in fixed expenses, by how much would operating income increase? (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.) Net operating income will increase by $_______ D.) Cullumber's managers have determined that variable costs per unit will increase by 20% beginning next month. To offset this increase in costs, they are considering a 10% increase in the sales price. Market research indicates that the price increase will…