Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to...
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions.
| BARRY'S COFFEE CAKES | |||||||||
| Contribution Margin Income Statement | |||||||||
| 20,000 units | 25,000 units | ||||||||
| Total | Total | Per Unit | Percents of Sales | ||||||
| Sales revenue | $ | 150,000 | |||||||
| Less: Variable costs | 50,000 | ||||||||
| Contribution margin | 100,000 | ||||||||
| Less: Fixed costs | 30,000 | ||||||||
| Net operating income | $ | 70,000 | |||||||
Knowledge Check 01
What is the unit contribution margin?
-
$7.50
-
$2.50
-
$5.00
-
$3.00
Knowledge Check 02
What is the contribution margin ratio?
-
33%
-
50%
-
40%
-
67%
Knowledge Check 03
If there is no change in fixed costs, what will the net operating income be when 25,000 units are sold?
-
$95,000
-
$125,000
-
$70,000
-
$87,500
Below is the data from a regression analysis performed by Earth Right Spa on its overhead costs and clients for the past year. Use this information to answer the following questions.
| SUMMARY OUTPUT | ||||||
| Regression Statistics | ||||||
| Multiple R | 0.949 | |||||
| R Square | 0.901 | |||||
| Adjusted R Square | 0.891 | |||||
| Standard Error | 1102.512 | |||||
| Observations | 12.000 | |||||
| ANOVA | |||||
| df | ss | MS | f | Significance F | |
| Regression | 1 | 111011767.37 | 111011767.37 | 91.33 | 0.00 |
| Residual | 10 | 12155332.63 | 1215533.26 | ||
| Total | 11 | 123167100.00 | |||
| Ceofficients | Standard Error | tStar | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95% | |
| Intercept | 6825.84 | 724.43 | 9.42 | 0.00 | 5211.70 | 8439.98 | 5211.70 | 8439.98 |
| Guests (X) | 32.86 | 3.44 | 9.56 | 0.00 | 25.20 | 40.52 | 25.20 | 40.52 |
Knowledge Check 01
Identify the fixed overhead cost per month from the data provided.
-
$8,364.72
-
$946.56
-
$6,825.84
-
$6,546.54
Knowledge Check 02
What is the variable overhead cost per client served?
-
$724.43
-
$25.20
-
$40.52
-
$32.86
Knowledge Check 03
What will be the total overhead cost if 100 clients are served?
-
$10,111.84
-
$79,269.07
-
$9,345.86
-
$10,878.24
| Month | Customers | Total Overhead Cost | ||||
| March | 5,000 | $ | 85,000 | |||
| April | 7,500 | $ | 91,500 | |||
| May | 8,000 | $ | 94,000 | |||
| June | 9,000 | $ | 97,000 | |||
| July | 6,000 | $ | 87,800 | |||
| August | 6,500 | $ | 92,700 | |||
Knowledge Check 01
What is the total overhead cost in the month with the highest activity?
-
$85,000
-
$91,500
-
$97,000
-
$94,000
Knowledge Check 02
What is the variable cost per unit?
-
$2.70
-
$4.00
-
$3.50
-
$3.00
Knowledge Check 03
What is the total fixed overhead cost?
-
$85,000
-
$80,000
-
$50,000
-
$70,000
The span at which the cost behaviors are expected to hold true is called:
Homework Answers
|
Unit contribution margin = Total Contribution margin/units = 100,000/20,000 = 5.00 |
|
|
Contribution margin ratio = Total Contribution margin/Total sales revenue = 100,000/150,000 = 67% |
|
|
Net operating income = Total Contribution margin - Fixed cost = (5*25,000) - 30,000 = 95,000 |
Add Answer to:
Below is an incomplete contribution margin income statement for
Barry's Coffee Cakes. Use this information to...
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to...
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions. BARRY'S COFFEE CAKES Contribution Margin Income Statement 20,000 units 25,000 units Total Percents of Sales Per Unit Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Net operating income Total $150,000 se.000 100,000 30.000 $ 70,000 LI 1 Knowledge Check 01 What is the unit contribution margin? $7.50 $2.50 $5.00 $3.00 Knowledge Check 02 What is the contribution margin...
Below is the data from a regression analysis performed by Earth Right Spa on its overhead...
Below is the data from a regression analysis performed by Earth Right Spa on its overhead costs and clients for the past year. Use this information to answer the following questions. SUMMARY OUTPUT Regression Statistics Multiple R 0.949 R Square 0.901 Adjusted R Square 0.891 Standard Error 1102.512 Observations 12.000 ANOVA df ss MS f Significance F Regression 1 111011767.37 111011767.37 91.33 0.00 Residual 10 12155332.63 1215533.26 Total 11 123167100.00 Ceofficients Standard Error tStar P-value Lower 95% Upper 95% Lower...
WESTERWHEAT Contribution Margin Income Statement 150,000 units sold Total Per Unit Percent Sales revenue $1,950,000 $13.00...
WESTERWHEAT Contribution Margin Income Statement 150,000 units sold Total Per Unit Percent Sales revenue $1,950,000 $13.00 1008 Less: Variable 1,200,000 8.00 620 costs Contribution $ 750,000 $ 5.00 388 Less: Fixed costs 350,000 Net operating $ 400,000 income Knowledge Check 01 What is Westerwheat's degree of operating leverage? 2143 4.875 1.875 3.000 Knowledge Check O2 A 20 percent increase in sales revenue will increase net operating Income by 42.86% 97.50% 60.00% 37.50% Knowledge Check 03 Decreasing fixed costs by $100,000...
4. The contribution margin income statement of Bountiful Bean Coffee for February follows: Bountiful Bean Coffee...
4. The contribution margin income statement of Bountiful Bean Coffee for February follows: Bountiful Bean Coffee Contribution Margin Income Statement For the Month Ended February 29 Sales revenue $85,000 Variable expenses Cost of goods sold $28,000 Marketing expense 9,000 General and administrative expense 3,000 40,000 Contribution margin 45,000 Fixed expenses: Marketing expense 12,375 2,625 15,000 General and administrative expense $30,000 Operating income Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable...
Knowledge Check 01 Which of the following is true of the contribution approach? It is mainly...
Knowledge Check 01 Which of the following is true of the contribution approach? It is mainly used for external reporting purposes. It separates costs into fixed and variable categories. OIt is not useful for merchandising companies It calculates gross margin by deducting cost of goods sold from sales Knowledge Check 02 Davidson Company has a product with a selling price per unit of $100, the unit variable cost is $60, and the total unit? monthly fixed costs are $30,000. If...
Amount Descriptions Calculations Contribution Margin Income Statement Instructions Suppose that Larimer Company sells a product for...
Amount Descriptions Calculations Contribution Margin Income Statement Instructions Suppose that Larimer Company sells a product for $20. Unit costs are as follows: Direct materials $1.70 Direct labor 1.60 Variable factory overhead Variable selling and administrative expense 2.00 1.50 Total fixed factory overhead is $55,240 per year, and total fixed selling and administrative expense is $38,480. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio....
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...
3. Prepare a contribution margin income statement based on the budgeted figures for next year. In...
3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. Head-First Company Contribution Margin Income Statement For the Coming Year Percent of Sales Refer to the list below for the exact wording of text...
E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Inc. makes one...
E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 520 670 820 Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 75,400 149,000 $224,400 7 Required: 1. Complete the table. (Round your cost per unit answers to 2 decimal places.) 520 670 820...
E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Inc. makes one...
E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 455 605 755 $ 63,700 * 148,300 $212,000 Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required: 1. Complete the table. (Round your cost per unit answers to 2 decimal places.) 455 6 05...
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions. BARRY'S COFFEE CAKES Contribution Margin Income Statement 20,000 units 25,000 units Total Percents of Sales Per Unit Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Net operating income Total $150,000 se.000 100,000 30.000 $ 70,000 LI 1 Knowledge Check 01 What is the unit contribution margin? $7.50 $2.50 $5.00 $3.00 Knowledge Check 02 What is the contribution margin...
WESTERWHEAT Contribution Margin Income Statement 150,000 units sold Total Per Unit Percent Sales revenue $1,950,000 $13.00 1008 Less: Variable 1,200,000 8.00 620 costs Contribution $ 750,000 $ 5.00 388 Less: Fixed costs 350,000 Net operating $ 400,000 income Knowledge Check 01 What is Westerwheat's degree of operating leverage? 2143 4.875 1.875 3.000 Knowledge Check O2 A 20 percent increase in sales revenue will increase net operating Income by 42.86% 97.50% 60.00% 37.50% Knowledge Check 03 Decreasing fixed costs by $100,000...
4. The contribution margin income statement of Bountiful Bean Coffee for February follows: Bountiful Bean Coffee Contribution Margin Income Statement For the Month Ended February 29 Sales revenue $85,000 Variable expenses Cost of goods sold $28,000 Marketing expense 9,000 General and administrative expense 3,000 40,000 Contribution margin 45,000 Fixed expenses: Marketing expense 12,375 2,625 15,000 General and administrative expense $30,000 Operating income Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable...
Knowledge Check 01 Which of the following is true of the contribution approach? It is mainly used for external reporting purposes. It separates costs into fixed and variable categories. OIt is not useful for merchandising companies It calculates gross margin by deducting cost of goods sold from sales Knowledge Check 02 Davidson Company has a product with a selling price per unit of $100, the unit variable cost is $60, and the total unit? monthly fixed costs are $30,000. If...
Amount Descriptions Calculations Contribution Margin Income Statement Instructions Suppose that Larimer Company sells a product for $20. Unit costs are as follows: Direct materials $1.70 Direct labor 1.60 Variable factory overhead Variable selling and administrative expense 2.00 1.50 Total fixed factory overhead is $55,240 per year, and total fixed selling and administrative expense is $38,480. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio....
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...
3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. Head-First Company Contribution Margin Income Statement For the Coming Year Percent of Sales Refer to the list below for the exact wording of text...
E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 520 670 820 Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 75,400 149,000 $224,400 7 Required: 1. Complete the table. (Round your cost per unit answers to 2 decimal places.) 520 670 820...
E5-14 Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5] Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 455 605 755 $ 63,700 * 148,300 $212,000 Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required: 1. Complete the table. (Round your cost per unit answers to 2 decimal places.) 455 6 05...
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