A company sells small motors as a component part to automobiles. The Model 101 motor sells...
A company sells small motors as a component part to automobiles. The Model 101 motor sells for $950 and has per-unit variable costs of $570 associated with its production. The company has fixed expenses of $90,000 per month. In August, the company sold 415 of the Model 101 motors.
A. Calculate the contribution margin per unit for the Model 101.
Contribution margin $ per unit
B. Calculate the contribution margin ratio of the Model 101.
Contribution margin ratio %
C. Prepare a contribution margin income statement for the month of August. Use a minus sign for a net loss if present.
| Income Statement | |
| $ | |
| $ | |
| $ | |
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A company sells small motors as a component part to automobiles.
The Model 101 motor sells...
A company sells small motors as a component part to automobiles. The Model 101 motor sells...
A company sells small motors as a component part to automobiles. The Model 101 motor sells for $760 and has per unit variable costs of $380 associated with its production. The company has fixed expenses of $90,000 per month. In August, the company sold 435 of the Model 101 motors A. Calculate the contribution margin per unit for the Model 101. Contribution margin per unit B. Calculate the contribution margin ratio of the Model 101. Contribution margin ratio C. Prepare...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
Morning Dove Company manufactures one model of birdbath, which
is very popular. Morning Dove sells all units it produces each
month. The relevant range is 0–1,700 units, and monthly production
costs for the production of 1,200 units follow. Morning Dove’s
utilities and maintenance costs are mixed with the fixed components
shown in parentheses.
Production Costs
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Direct materials
$
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Direct labor
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Utilities ($140 fixed)
570
Supervisor’s salary
2,800
Maintenance ($330 fixed)
490
Depreciation
850
Suppose it sells...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,700 units, and monthly production costs for the production of 1,400 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 1,700 Direct labor 7,900 Utilities ($120 fixed) 640 Supervisor’s salary 3,300 Maintenance ($290 fixed) 530 Depreciation 750 Suppose it sells...
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Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
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A company sells small motors as a component part to automobiles. The Model 101 motor sells for $760 and has per unit variable costs of $380 associated with its production. The company has fixed expenses of $90,000 per month. In August, the company sold 435 of the Model 101 motors A. Calculate the contribution margin per unit for the Model 101. Contribution margin per unit B. Calculate the contribution margin ratio of the Model 101. Contribution margin ratio C. Prepare...
Morning Dove Company manufactures one model of birdbath, which
is very popular. Morning Dove sells all units it produces each
month. The relevant range is 0–1,700 units, and monthly production
costs for the production of 1,200 units follow. Morning Dove’s
utilities and maintenance costs are mixed with the fixed components
shown in parentheses.
Production Costs
Total Cost
Direct materials
$
2,700
Direct labor
7,300
Utilities ($140 fixed)
570
Supervisor’s salary
2,800
Maintenance ($330 fixed)
490
Depreciation
850
Suppose it sells...
Required information Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0-2,000 units, and monthly production costs for the production of 1,500 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $2,300 Direct labor 6,900 Utilities ($120 fixed) 570 Supervisor's salary 3,200 Maintenance ($330 fixed) 530 Depreciation 900 Suppose it...
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Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (14,500 units) Production costs (19,000 units): $2,175,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead $1,054,500 505,400 252,700 169,100 1,981,700 Selling and administrative expenses Variable selling and administrative expenses $307,200 Fixed selling and administrative expenses 118,900 426,100 If required, round interim per-unit calculations to...
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