A cement manufacturer has supplied the following data:- **Tons of cement produced and sold:** 290,000- **Sales revenue:** $994,000- **Variable manufacturing expense:** $235,000- **Fixed manufacturing expense:** $322,000- **Variable selling and administrative expense:** $172,540- **Fixed selling and administrative expense:** $96,000- **Net operating income:** $168,460The company's contribution margin ratio is closest to:**Multiple Choice:**- 44.0%- 16.9%This data is used to calculate the contribution margin ratio, which is a financial metric indicating the percentage of sales revenue remaining after variable costs are covered. The calculation is essential for understanding how well the company can cover its fixed expenses and contribute to net operating income. **Question:**The company's contribution margin ratio is closest to:**Multiple Choice Options:**- 44.0%- 16.9%- 59.0%- 67.6%

Contribution margin ratio = (Contribution/sales)×100

Answered: A cement manufacturer has supplied the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 58,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense 2. What is the unit product cost under absorption costing? The company sold 40,000 units in the East region and 14,000 units in the West region. It determined $320,000 of its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead…
Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin Fixed costs Income $ 3,136,000 2,352,000 784,000 567,000 $ 217,000 1. Compute break-even point in units. 2. Compute break-even point in sales dollars. 1. Break-even units 2. Break-even sales dollars units
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Required information A company sold a total of 1,000 units for total sales revenue of $70,000. The company incurred total variable expenses of $38,500 and total fixed expenses of $ 23,310. Based on this, the company reported a total contribution margin of $31,500 and net operating income of $ 8,190. Use this information to answer the following questions. Assume that all units are within the relevant range. Calculate the margin of safety in dollars and the margin of safety percentage. Margin of safety in dollars Margin of safety percentage
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Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 54,000 units and sold 49,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 22 $ 12 $3 $5 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce…
4 Womack Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses Net operating income The margin of safety percentage is closest to: O 75% 1% O 6% O 24% $ 270,000 202,500 67,500 63,750 $3,750

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