Durant Co. manufactures glass bottles for dairy products. The contribution margin is $0.20 per bottle. Durant...
Durant Co. manufactures glass bottles for dairy products. The contribution margin is $0.20 per bottle. Durant just received notification that one of its orders for 125,000 bottles contained misprinted labels and thus had to recall and reprint the bottle labels. If it will cost $0.15 per bottle to reprint the labels and $1,000 to reship the bottles, what will the net contribution margin be after the recall?
Net contribution margin = _______
Homework Answers
Net contribution margin = (Contribution margin per bottle - Reprint cost per bottle) * 125,000 bottles
= ($0.2 - $0.15) * 125,000
= $6,250
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Durant Co. manufactures glass bottles for dairy products. The contribution margin is $0.20 per bottle. Durant...
Durant Co. manufactures glass bottles for dairy products. The contribution margin is $0.24 per bottle. Durant...
Durant Co. manufactures glass bottles for dairy products. The contribution margin is $0.24 per bottle. Durant just received notification that one of its orders for 135.000 bottles contained misprinted labels and thus had to recall and reprint the bottle labels. If it will cost $0.17 per bottle to reprint the labels and $1,000 to reship the bottles, what will the not contributor margin be after the recall?
Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for...
Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product $280 $400 $360 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin 14 56 21 154 144 213 168200234 $ 112 S20D $126 40% 50% 35% Contribution margin ratio The same raw material is used in all three products. Barlow Company has only 4,300 pounds of raw material on hand...
III) A) The Sirap Co. manufactures plastic bottles for its medicinal products. The manufacturing cost is...
III) A) The Sirap Co. manufactures plastic bottles for its medicinal products. The manufacturing cost is $67 per batch of 100 bottles. This includes fixed costs of $22 per batch. A proposal is received to purchase the bottles from an outside source for $35 per batch, plus freight charges at $5 per batch. Prepare a differential analysis to show in good form if Sirap Co. should continue making the bottles, Alterative One or choose Alternative Two buying from an outside...
Lakeway Manufacturing Co. manufactures and sells household cleaning products. The company's resea...
Lakeway Manufacturing Co. manufactures and sells household cleaning products. The company's research department has developed a new cleaner for which a standard cost must be determined. The new cleaner is made by mixing 5 quarts of triphate solution and 4 pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, 4 ounces of methage are added. This "recipe" produces 6 quart of the cleaner, which is then packaged in 1-quart plastic dispenser bottles. Raw...
Hardcastle Inc, manufactures two products, the Yin and the Yan. The contribution margin per unit for...
Hardcastle Inc, manufactures two products, the Yin and the Yan. The contribution margin per unit for the Yin is $2.71 and for the Yonis 58.31 Total fixed costs are $147962 and the sales ratio is 3.45 Yin to 1 Yan. What is the volume of sales of the Yin at the breakeven Select one a 11395 5697 .28906 0 .57812
Henna Co. produces and sells two products, T and O. It manufactures these products in separate...
Henna Co. produces and sells two products, T and O. It
manufactures these products in separate factories and markets them
through different channels. They have no shared costs. This year,
the company sold 42,000 units of each product. Sales and costs for
each product follow.
Product T
Product O
Sales
$
747,600
$
747,600
Variable
costs
523,320
149,520
Contribution
margin
224,280
598,080
Fixed costs
108,280
482,080
Income before
taxes
116,000
116,000
Income taxes
(35% rate)
40,600
40,600
Net income
$...
Henna Co. produces and sells two products, T and O. It manufactures these products in separate...
Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 48,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32% rate) Net income Product T $ 825,600 577,920 247,680 113,680 134,000 42,880 $ 91,120 Product O $825,600 165,120 660,480 526,480 134,000 42,880...
Henna Co. produces and sells two products, T and O. It manufactures these products in separate...
Henna Co. produces and sells two products, T and O. It
manufactures these products in separate factories and markets them
through different channels. They have no shared costs. This year,
the company sold 51,000 units of each product. Sales and costs for
each product follow.
Product T
Product O
Sales
$
821,100
$
821,100
Variable costs
492,660
82,110
Contribution margin
328,440
738,990
Fixed costs
187,440
597,990
Income before taxes
141,000
141,000
Income taxes (32% rate)
42,300
42,300
Net income
$...
Henna Co. produces and sells two products, T and O. It manufactures these products in separate...
Henna Co. produces and sells two products, T and O. It
manufactures these products in separate factories and markets them
through different channels. They have no shared costs. This year,
the company sold 51,000 units of each product. Sales and costs for
each product follow.
Product T
Product O
Sales
$
821,100
$
821,100
Variable costs
492,660
82,110
Contribution margin
328,440
738,990
Fixed costs
187,440
597,990
Income before taxes
141,000
141,000
Income taxes (32% rate)
42,300
42,300
Net income
$...
Rooney Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price...
Rooney Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 92 (68) $ 24 Supreme $ 122 (81) $ 41 Rooney expects to incur annual fixed costs of $172,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Rooney must sell to...
Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product $280 $400 $360 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin 14 56 21 154 144 213 168200234 $ 112 S20D $126 40% 50% 35% Contribution margin ratio The same raw material is used in all three products. Barlow Company has only 4,300 pounds of raw material on hand...
III) A) The Sirap Co. manufactures plastic bottles for its medicinal products. The manufacturing cost is $67 per batch of 100 bottles. This includes fixed costs of $22 per batch. A proposal is received to purchase the bottles from an outside source for $35 per batch, plus freight charges at $5 per batch. Prepare a differential analysis to show in good form if Sirap Co. should continue making the bottles, Alterative One or choose Alternative Two buying from an outside...
Lakeway Manufacturing Co. manufactures and sells household cleaning products. The company's research department has developed a new cleaner for which a standard cost must be determined. The new cleaner is made by mixing 5 quarts of triphate solution and 4 pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, 4 ounces of methage are added. This "recipe" produces 6 quart of the cleaner, which is then packaged in 1-quart plastic dispenser bottles. Raw...
Hardcastle Inc, manufactures two products, the Yin and the Yan. The contribution margin per unit for the Yin is $2.71 and for the Yonis 58.31 Total fixed costs are $147962 and the sales ratio is 3.45 Yin to 1 Yan. What is the volume of sales of the Yin at the breakeven Select one a 11395 5697 .28906 0 .57812
Henna Co. produces and sells two products, T and O. It
manufactures these products in separate factories and markets them
through different channels. They have no shared costs. This year,
the company sold 42,000 units of each product. Sales and costs for
each product follow.
Product T
Product O
Sales
$
747,600
$
747,600
Variable
costs
523,320
149,520
Contribution
margin
224,280
598,080
Fixed costs
108,280
482,080
Income before
taxes
116,000
116,000
Income taxes
(35% rate)
40,600
40,600
Net income
$...
Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 48,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32% rate) Net income Product T $ 825,600 577,920 247,680 113,680 134,000 42,880 $ 91,120 Product O $825,600 165,120 660,480 526,480 134,000 42,880...
Henna Co. produces and sells two products, T and O. It
manufactures these products in separate factories and markets them
through different channels. They have no shared costs. This year,
the company sold 51,000 units of each product. Sales and costs for
each product follow.
Product T
Product O
Sales
$
821,100
$
821,100
Variable costs
492,660
82,110
Contribution margin
328,440
738,990
Fixed costs
187,440
597,990
Income before taxes
141,000
141,000
Income taxes (32% rate)
42,300
42,300
Net income
$...
Henna Co. produces and sells two products, T and O. It
manufactures these products in separate factories and markets them
through different channels. They have no shared costs. This year,
the company sold 51,000 units of each product. Sales and costs for
each product follow.
Product T
Product O
Sales
$
821,100
$
821,100
Variable costs
492,660
82,110
Contribution margin
328,440
738,990
Fixed costs
187,440
597,990
Income before taxes
141,000
141,000
Income taxes (32% rate)
42,300
42,300
Net income
$...
Rooney Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 92 (68) $ 24 Supreme $ 122 (81) $ 41 Rooney expects to incur annual fixed costs of $172,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Rooney must sell to...
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