Homework Answers
| a. | |
| Contribution margin ratio for Wreaths = Contribution margin per unit / Sales price = 12 / 40 = | 30% |
| Contribution margin ratio for Leis = Contribution margin per unit / Sales price = 6 / 8 = | 75% |
| b-1. | |
| Average contribution margin ratio = (Contribution margin ratio for Wreaths * Weight of Wreaths) + (Contribution margin ratio for Leis * Weight of Leis) = (30%*80%) + (75%*20%) = | 39% |
| b-2. | |
| Operating income = ( Sales*Average contribution margin ratio ) - Fixed costs = ( 300000*39% ) - 97500 = | 19500 |
| b-3. | |
| Break even dollars sales volume = Fixed costs / Average contribution margin ratio = 97500 / 39% = | 250000 |
| c-1. | |
| Average contribution margin ratio = (Contribution margin ratio for Wreaths * Weight of Wreaths) + (Contribution margin ratio for Leis * Weight of Leis) = (30%*60%) + (75%*40%) = | 48% |
| c-2. | |
| Operating income = ( Sales*Average contribution margin ratio ) - Fixed costs = ( 300000*48% ) - 97500 = | 46500 |
| c-3. | |
| Break even dollars sales volume = Fixed costs / Average contribution margin ratio = 97500 / 48% = | 203125 |
Add Answer to:
Ivy Blooms sells wreaths and leis. The following is selected per-unit information for these two products....
value: 10.00 points Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM...
value: 10.00 points Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM ratios, and the CM per unit for the two products are shown below Product Basic Total Deluxe $600,000 $400,000 $1,000,000 Sales Contribution margin ratio Contribution margin per unit 60% 9.00 11.50 The company's fixed expenses total $400,000 per month. Requirea 1. Prepare a contribution format income statement for the company as a whole. Basic Deluxe Total Amount Amount Amount 2. Compute the overall break-even...
Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM ratios, and the...
Gogan Company manufactures and sells two products: Basic and
Deluxe. Monthly sales, CM ratios, and the CM per unit for the two
products are shown below:
Product
Basic
Deluxe
Total
Sales
$
600,000
$
400,000
$
1,000,000
Contribution margin ratio
60
%
35
%
?
Contribution margin per unit
$
9.00
$
11.50
?
The company’s fixed expenses total $400,000 per month.
Required: 1. Prepare a contribution format income statement for the company as a whole. 1.000.000 Basic Deluxe Total...
Problem 6-2 Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400...
Problem 6-2 Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400 and monthly fixed costs are $2,400,000. The contribution margin income statement for last month is as follows. Contribution Margin Income Statement 6,000 units sold Per unit Total Percent of sales Sales price $1,000 $6,000,000 100% Variable cost 400 2,400,000 40% Contribution margin $600 3,600,000 60% Fixed costs 2,400,000 Profit $1,200,000 Break-even units = $2,400,000 ÷ 600 = 4,000 Break-even sales = 4,000 × $1,000...
Martin Company's projected profit for the coming year is as follows: Total Per Unit Sales $300,000...
Martin Company's projected profit for the coming year is as follows: Total Per Unit Sales $300,000 $30 Total Variable Cost 200,000 20 Contribution Margin $100,000 $10 Total Fixed Cost 80,000 Operating Income $20,000 Compute the variable cost ratio (round to 4 decimal places). Compute the contribution margin ratio (round to 4 decimal places). Compute the break-even point in units. Compute the break-even point in sales dollars. How many units must be sold to earn a profit of $50,000? For the...
Base CVP Scenario - Base ALL OTHER Calculations from this set of numbers! Total Per unit...
Base CVP Scenario - Base ALL OTHER Calculations from this set of numbers! Total Per unit Ratio % Sales (20,000 ) $800,000 $40.00 100.00% Variable expenses 500,000 25.00 62.50% Contribution margin 300,000 $15.00 37.50% Fixed expenses 125,000 Net operating income $175,000 (A) Determine the break-even point in sales units Break Even (Units) Formula = ______________ (B) Sales volume increases by 60% and the selling price decreases by $6.00...
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs...
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $76 per unit. Variable selling expenses are $14 per unit, annual fixed manufacturing costs are $352,000, and fixed selling and administrative costs are $266,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio...
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs...
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $76 per unit. Variable selling expenses are $14 per unit, annual fixed manufacturing costs are $352,000, and fixed selling and administrative costs are $266,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio...
Exercise 1. Fantasy Corporation manufactures a single product. The selling price is $125 per unit, and...
Exercise 1. Fantasy Corporation manufactures a single product. The selling price is $125 per unit, and variable costs amount to $81 per unit. The fixed costs are $28,500 per month. (a) What is the contribution margin per unit $_ per unit (b) What is the contribution margin ratio? _% (Rounded to 1 decimal place) (c) What is the monthly sales volume (in dollars) at the break-even point? $_ (d) How many units must be sold each month to earn a...
Blanchard Company manufactures a single product that sells for $155 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $155 per unit and whose total variable costs are $124 per unit. The company's annual fixed costs are $480,500. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Choose Numerator: Choose Denominator: = = Contribution Margin Ratio Contribution margin ratio (c) Compute the company's break-even point in units. Choose Numerator: 1. Choose Denominator: = = Break-Even Units Break-even units (d) Compute the company's...
Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $112 per unit. The company's annual fixed costs are $734,400. (a) Compute the company's contribution margin per unit. Less: Contribution margin (b) Compute the company's contribution margin ratio. Choose Choose Numerator: Denominator: Contribution Margin Ratio = Contribution margin ratio (c) Compute the company's break-even point in units. Choose Numerator: Choose Denominator: Break-Even Units Break-even units 0 (d) Compute the company's break-even point...
value: 10.00 points Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM ratios, and the CM per unit for the two products are shown below Product Basic Total Deluxe $600,000 $400,000 $1,000,000 Sales Contribution margin ratio Contribution margin per unit 60% 9.00 11.50 The company's fixed expenses total $400,000 per month. Requirea 1. Prepare a contribution format income statement for the company as a whole. Basic Deluxe Total Amount Amount Amount 2. Compute the overall break-even...
Gogan Company manufactures and sells two products: Basic and
Deluxe. Monthly sales, CM ratios, and the CM per unit for the two
products are shown below:
Product
Basic
Deluxe
Total
Sales
$
600,000
$
400,000
$
1,000,000
Contribution margin ratio
60
%
35
%
?
Contribution margin per unit
$
9.00
$
11.50
?
The company’s fixed expenses total $400,000 per month.
Required: 1. Prepare a contribution format income statement for the company as a whole. 1.000.000 Basic Deluxe Total...
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $76 per unit. Variable selling expenses are $14 per unit, annual fixed manufacturing costs are $352,000, and fixed selling and administrative costs are $266,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio...
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $76 per unit. Variable selling expenses are $14 per unit, annual fixed manufacturing costs are $352,000, and fixed selling and administrative costs are $266,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio...
Exercise 1. Fantasy Corporation manufactures a single product. The selling price is $125 per unit, and variable costs amount to $81 per unit. The fixed costs are $28,500 per month. (a) What is the contribution margin per unit $_ per unit (b) What is the contribution margin ratio? _% (Rounded to 1 decimal place) (c) What is the monthly sales volume (in dollars) at the break-even point? $_ (d) How many units must be sold each month to earn a...
Blanchard Company manufactures a single product that sells for $155 per unit and whose total variable costs are $124 per unit. The company's annual fixed costs are $480,500. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Choose Numerator: Choose Denominator: = = Contribution Margin Ratio Contribution margin ratio (c) Compute the company's break-even point in units. Choose Numerator: 1. Choose Denominator: = = Break-Even Units Break-even units (d) Compute the company's...
Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $112 per unit. The company's annual fixed costs are $734,400. (a) Compute the company's contribution margin per unit. Less: Contribution margin (b) Compute the company's contribution margin ratio. Choose Choose Numerator: Denominator: Contribution Margin Ratio = Contribution margin ratio (c) Compute the company's break-even point in units. Choose Numerator: Choose Denominator: Break-Even Units Break-even units 0 (d) Compute the company's break-even point...
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