Homework Answers
Contribution margin ratio= (Sales - variable exp)×100/Sales
30= (Sales- 520,800)×100/ Sales
30 × sales= 100 Sales- 520,800 ×100
70 sales= 520,800× 100
Sales = 520,800×100/70= 744,000
Contribution margin statement
| Total | per unit | |
| Sales ( 6,200 units) | 744,000 | 120 |
| Variable | 520,800 | 84 |
| Profit | 223,200 | 36 |
| Fixed cost | 43,200 | |
| Net income | 180,000 |
If varibale cost per unit decrease by 3%
Then new variable cost = 84 × 97% = 81.48
Cm ratio = 40%
40 = (sales - 81.48)×100/sales
100 sales - 40 sales = 81.48×100
Sales = 81.48× 100/60
= 135.80
Contribution margin = sales - variable
= 135.8- 81.48 =54.32per unit
Fixed cost = 43,200+ 8,000= 51,200
Desired sales in units= fixed cost + net income/ CM per unit
= 51,200 + 180,000/54.32
=4,256 units
A. Answer is correct.
Add Answer to:
8 HSL Company produces rugs. The following cost information from last year is available: Total fixed...
2 Bearcat Company's relevant range of production is 8,500 units to 10,500 units. When it produces...
2 Bearcat Company's relevant range of production is 8,500 units to 10,500 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Insurance on factory Fixed selling expense Sales commissions Utilities on headquarter office Average Cost Per Unit $ 6.50 $ 4.00 $ $ 4.00 $3.50 $ 1.00 $ 0.50 What is total product cost when it produces and sells 10,000 units? $ $ $ $ 166,000...
Required information The following information applies to the questions displayed below) This year Burchard Company sold...
Required information The following information applies to the questions displayed below) This year Burchard Company sold 45,000 units of its only product for $18.00 per unit. Manufacturing and selling the product required $130,000 of fixed manufacturing costs and $190,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs $ 5.69 4.00 0.5e @.30 Next year the company will use...
Required information [The following information applies to the questions displayed below.] This year Burchard Company sold...
Required information [The following information applies to the questions displayed below.] This year Burchard Company sold 45,000 units of its only product for $18.00 per unit. Manufacturing and selling the product required $130,000 of fixed manufacturing costs and $190,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material $ 5.00 Direct labor (paid on the basis of completed units) 4.00 Variable overhead costs 0.50 Variable selling and administrative costs 0.30 Next year the company will use...
Break-Even in Units and Sales Dollars, Margin of Safety Drake Company produces a single product. Last...
Break-Even in Units and Sales Dollars, Margin of Safety Drake Company produces a single product. Last year's income statement is as follows: Sales (18,000 units) $1,083,600 Less: Variable costs 723,600 Contribution margin $360,000 Less: Fixed costs 273,000 Operating income $87,000 Required: 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the...
Last month, Laredo Company sold 620 units for $110 each. During the month, fixed costs were...
Last month, Laredo Company sold 620 units for $110 each. During the month, fixed costs were $7,656 and variable costs were $66 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo's margin of safety in units and as a percentage of sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit contribution...
Required information The following information applies to the questions displayed below This year Burchard Company sold...
Required information The following information applies to the questions displayed below This year Burchard Company sold 38,000 units of its only product for $16.60 per unit. Manufacturing and selling the product required $123,000 of fixed manufacturing costs and $183,0000 of fixed selling and administrative costs. Its per unit variable costs follow. Material $4.30 Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs 3.30 0.43 0.23 Next year the company will use new...
Last month, Laredo Company sold 530 units for $65 each. During the month, fixed costs were...
Last month, Laredo Company sold 530 units for $65 each. During the month, fixed costs were $4,342 and variable costs were $39 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo's margin of safety in units and as a percentage of sales.
Last month, Laredo Company sold 640 units for $120 each. During the month, fixed costs were...
Last month, Laredo Company sold 640 units for $120 each. During the month, fixed costs were $8,448 and variable costs were $72 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo’s margin of safety in units and as a percentage of sales.
Last month, Laredo Company sold 500 units for $50 each. During the month, fixed costs were...
Last month, Laredo Company sold 500 units for $50 each. During the month, fixed costs were $6,560 and variable costs were $9 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo’s margin of safety in units and as a percentage of sales.
Sales and cost data for Van Buren Company. The total sales and cost information is based...
Sales and cost data for Van Buren Company. The total sales and cost information is based on the sale of 20,000 units. Total Per Unit Sales $570,000 $28.50 Variable costs 387,600 19.38 Fixed costs 140,000 Compute the total contribution margin, contribution margin ratio, and unit contribution margin for this company. Also, compute the increase in net income that will result from a $50,000 increase in sales and a 1,000-unit increase in sales. 1. Total contribution margin: 2. Contribution margin ratio: 3....
2 Bearcat Company's relevant range of production is 8,500 units to 10,500 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Insurance on factory Fixed selling expense Sales commissions Utilities on headquarter office Average Cost Per Unit $ 6.50 $ 4.00 $ $ 4.00 $3.50 $ 1.00 $ 0.50 What is total product cost when it produces and sells 10,000 units? $ $ $ $ 166,000...
Required information The following information applies to the questions displayed below) This year Burchard Company sold 45,000 units of its only product for $18.00 per unit. Manufacturing and selling the product required $130,000 of fixed manufacturing costs and $190,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs $ 5.69 4.00 0.5e @.30 Next year the company will use...
Required information [The following information applies to the questions displayed below.] This year Burchard Company sold 45,000 units of its only product for $18.00 per unit. Manufacturing and selling the product required $130,000 of fixed manufacturing costs and $190,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material $ 5.00 Direct labor (paid on the basis of completed units) 4.00 Variable overhead costs 0.50 Variable selling and administrative costs 0.30 Next year the company will use...
Last month, Laredo Company sold 620 units for $110 each. During the month, fixed costs were $7,656 and variable costs were $66 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo's margin of safety in units and as a percentage of sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit contribution...
Required information The following information applies to the questions displayed below This year Burchard Company sold 38,000 units of its only product for $16.60 per unit. Manufacturing and selling the product required $123,000 of fixed manufacturing costs and $183,0000 of fixed selling and administrative costs. Its per unit variable costs follow. Material $4.30 Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs 3.30 0.43 0.23 Next year the company will use new...
Last month, Laredo Company sold 530 units for $65 each. During the month, fixed costs were $4,342 and variable costs were $39 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo's margin of safety in units and as a percentage of sales.
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago