# converting absorption income statement to a contribution margin income statement related homework questions

• #### converting absorption income statement to a contribution margin income statement

Ystad IndustriesRoland Andersson is the manager of the Ekland Division of Ystad Industries. He is one of several managers being considered for position of CEO, as the current CEO isretiring in a year.All divisions use standard absorption costing. The division has the capacity to...

• #### Total sales, contribution margin, net income calculation

Hammer Co. reports the following data for the current year:Net Income before tax \$42,000Variable Cost \$ 67,000Total Fixed Cost \$18,000Tax rate 20%Calculate Hammer's total sales, contribution margin, and net income for the current year. Please make sure to clearly identify each an...

• #### Calculate the contribution of Division 2 and the contribution tooverall company profits if transfers are made from Division 1 toDivision 2 assuming the following details: Division 1 Division 2Market selling price \$3,500 \$6,00

Calculate the contribution of Division 2 and the contribution tooverall company profits if transfers are made from Division 1 toDivision 2 assuming the following details: Division 1 Division 2Market selling price \$3,500 \$6,000Variable cost \$...

• #### managerial accounting contribution margin ratio, break even question

Presque Isle Seating Co., a manufacturer of chairs, had the following data for 2011:Sales 2,400 unitsSales price \$40 per unitVariable costs \$14 per unitFixed costs \$19,500Compute the followinga. Contribution margin ratiob. Break-even point in dollarsc. Margin of safety in dollars...

• #### Contribution margin ratio / break even

The following information describes a product expected to be produced and sold by Swett Company:Selling price \$80 per unitVariable costs \$32 per unitTotal fixed costs \$630,000Tax rate 35%Required:(a) Calculate the contribution margin ratio.(b) Calculate the break-even point in do...

• #### # 14 Contribution Margin

A business operated @ 100% capacity furing its 1st month and incurred the following costs:Production (5,000 units) Direct materials \$70,000Direct labor 20,000Variable factory overhead 10,000Fixed factory overhead 2,000Operating expensesVariable operating exp. 17,000Fixed operatin...

• #### Contribution Margin Ratio - please don't answer if after 6 pm EST

The contribution margin ratio of Scoggins Corporation's only product is 69%. The company's monthly fixed expense is \$364,320 and the company's monthlytarget profit is \$14,000. The dollar sales to attain that target profit is closest to:\$261,041\$548,290\$528,000\$251,381

• #### Contribution Margin

Peluso Co, a manufacturer of snowmobiles, is operating at 72% of plantcapacity. Peluso’s plant manager is considering manufacturingheadlights, which are now being purchased for \$11 each. The Pelusoplant has the equipment and labor force required to manufacture theheadlights. The...

• #### Contribution Margin

During the past year the Carver Company manufactured 25,000 units and sold 20,000 units. Production costs during the year were as follows:Fixed manufacturing overhead \$550,000Variable manufacturing overhead \$380,000Direct labor \$278,000Direct materials \$214,000Sales totaled \$1,27...

• #### Contribution Margin

The Downtown Hobby Shop expects net daily sales of \$1200, with the costs of goods sold at \$750 and total expenses of \$ 250. Variable expenses, including cost of goodssold, is estimated at \$800, with fixed expenses of \$200. What is the contribution margin?A 33%B 25%C 27%D 75%

• #### Earth Company makes 2 products, Wind and Fire. Wind has a Contribution Margin per unit of \$6.00...

Earth Company makes 2 products, Wind and Fire. Wind has a Contribution Margin per unit of \$6.00 and Fire has a contribution margin per unit of \$11.00. Earth Companyhas annual fixed costs of \$290,000 units. Assume that there are only 20,000 machine hours available to make the two...

• #### Contribution Margin/Break even

Choose the correct answer for each:Xeller Company makes electronic keyboards. The practice model price is 220 and variable expenses are 190. The deluxe model price is 340 and the variable expenses are250. The professional model price is 1,200 and the variable expense per unit is...

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