How will a company's contribution margin be affected by an investment in equipment that increases fixed...
How will a company's contribution margin be affected by an investment in equipment that increases fixed costs in order to achieve a reduction in direct labor cost?
Homework Answers
The contribution margin will increase.
Reason:-
Contribution margin = Sales- variable cost.
Variable costs will go down because of equipment purchase. Hence, the contribution margin will increase.
| Hi mate, |
| I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here. |
| In case of doubt, please comment. I will consider myself fortunate if I can help you. |
| All the best for your bright future. |
Add Answer to:
How will a company's contribution margin be affected by an
investment in equipment that increases fixed...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin?...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What would the company's monthly operating income be if the company sold 150,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 4. What is the breakeven point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 6. Management is currently...
49. The contribution margin per unit and the contribution margin ratio will remain constant as long...
49. The contribution margin per unit and the contribution margin ratio will remain constant as long as: a. the selling cost remains the same. b. the cost of production and selling price changes. c. the sales revenue varies in direct proportion to volume. d. the volume of sales decreases. 50. The difference between sales and cost of goods sold equals ________. a. net profit b. profit after tax c. gross profit d. ...
Contribution margin Contribution margin income statement Contribution margin ratio Fixed cost Full absorption costing Linearity assumption...
Contribution margin Contribution margin income statement Contribution margin ratio Fixed cost Full absorption costing Linearity assumption Mixed cost Relevant range Scattergraph Step-variable cost Unit contribution margin Variable cost Variable costing None of these are correct Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".) Term Definition A. The way in which total cost behaves or changes, when some measure...
Show All Your Works How Do You Solve It: Calculate Sales mix and Contribution margin for...
Show All Your Works How Do You Solve It: Calculate Sales mix and Contribution margin for 256GB in Requirement 10 GigaCo Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: i Requirements - X Data Table - X 20.00 7.40 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What...
the drop down list has contribution margin contribution margin income statement contribution margin ratio fixed cost...
the
drop down list has
contribution margin
contribution margin income statement
contribution margin ratio
fixed cost
full absorption costing
linearity assumption
mixed cost
relevent range
scattergraph
step variable cost
unit contribution margin
variable cost
variable costing
none of these is correct
some terms may repeat
Check my work Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".) 0.3 points...
The following is Arcadia Corporation's contribution month: 1400000 Sales Variable expenses 1,050,000 Contribution margin 350,0000 Fixed...
The following is Arcadia Corporation's contribution month: 1400000 Sales Variable expenses 1,050,000 Contribution margin 350,0000 Fixed costs Net income 175000 175000 The compan during moamo beginning or ending inventories,produced, and sold 20,000 units the month. Required: (30 POINTs) a. What is the company's contribution margin ratio and per unit? b. What is the company's break-even in units? pany have to sell to attain a target profit of $125,000? d. What is the company's margin of safety in dollars? f Arcadia...
Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the...
Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,700, what dollar amount of sales must be made to produce the target income? $94,700 $160,000 $29,400 C) $130,600 $189,400 The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $179,000. $990,000 Sales...
Alpha Company's fixed costs for the year amounted to $450,000 and its unit contribution margin was...
Alpha Company's fixed costs for the year amounted to $450,000 and its unit contribution margin was $30 per unit. Beta Company's fixed costs for the year also amounted to $450,000 but its unit contribution margin was $20 per unit. Which company had the higher break-even point?
3. The contribution margin ratio increases when A) fixed costs increase. B) fixed costs decrease C)...
3. The contribution margin ratio increases when A) fixed costs increase. B) fixed costs decrease C) variable costs as a percentage of sales decrease. D) variable costs as a percentage of sales increase.
21. Variable costs are $400,000 and the contribution margin (CM) ratio is 0.20 (20%). If target...
21. Variable costs are $400,000 and the contribution margin (CM) ratio is 0.20 (20%). If target profit (net income) is $50,000, how much are fixed costs? a $75,000 b. $50,000 c. $350,000 d. $2,000,000 22. Contribution margin is the amount of sales revenue remaining after deducting a. mixed costs. b. fixed costs c. variable costs. d. factory overhead costs. 23. At Harry's Company, maintenance costs are a mixed cost. At the low level of activity (200 direct labor hours), maintenance...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What would the company's monthly operating income be if the company sold 150,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 4. What is the breakeven point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 6. Management is currently...
Contribution margin Contribution margin income statement Contribution margin ratio Fixed cost Full absorption costing Linearity assumption Mixed cost Relevant range Scattergraph Step-variable cost Unit contribution margin Variable cost Variable costing None of these are correct Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".) Term Definition A. The way in which total cost behaves or changes, when some measure...
Show All Your Works How Do You Solve It: Calculate Sales mix and Contribution margin for 256GB in Requirement 10 GigaCo Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: i Requirements - X Data Table - X 20.00 7.40 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What...
the
drop down list has
contribution margin
contribution margin income statement
contribution margin ratio
fixed cost
full absorption costing
linearity assumption
mixed cost
relevent range
scattergraph
step variable cost
unit contribution margin
variable cost
variable costing
none of these is correct
some terms may repeat
Check my work Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".) 0.3 points...
The following is Arcadia Corporation's contribution month: 1400000 Sales Variable expenses 1,050,000 Contribution margin 350,0000 Fixed costs Net income 175000 175000 The compan during moamo beginning or ending inventories,produced, and sold 20,000 units the month. Required: (30 POINTs) a. What is the company's contribution margin ratio and per unit? b. What is the company's break-even in units? pany have to sell to attain a target profit of $125,000? d. What is the company's margin of safety in dollars? f Arcadia...
Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,700, what dollar amount of sales must be made to produce the target income? $94,700 $160,000 $29,400 C) $130,600 $189,400 The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $179,000. $990,000 Sales...
3. The contribution margin ratio increases when A) fixed costs increase. B) fixed costs decrease C) variable costs as a percentage of sales decrease. D) variable costs as a percentage of sales increase.
21. Variable costs are $400,000 and the contribution margin (CM) ratio is 0.20 (20%). If target profit (net income) is $50,000, how much are fixed costs? a $75,000 b. $50,000 c. $350,000 d. $2,000,000 22. Contribution margin is the amount of sales revenue remaining after deducting a. mixed costs. b. fixed costs c. variable costs. d. factory overhead costs. 23. At Harry's Company, maintenance costs are a mixed cost. At the low level of activity (200 direct labor hours), maintenance...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago