A company sells small motors as a component part to automobiles. The Model 101 motor sells for $900 and has per-unit variable costs of $540 associated with its production. The company has fixed expenses of $80,000 per month. In August, the company sold 430 of the Model 101 motors. A. Calculate the contribution margin per unit for the Model 101. Contribution margin $fill in the blank 77c397059fd9060_1 per unit B. Calculate the contribution margin ratio of the Model 101. Contribution margin ratio fill in the blank 77c397059fd9060_2 % C. Prepare a contribution margin income statement for the month of August. Use a minus sign for a net loss if present. Income Statement $fill in the blank 2b0ae2fd1fe8011_2 fill in the blank 2b0ae2fd1fe8011_4 $fill in the blank 2b0ae2fd1fe8011_6 fill in the blank 2b0ae2fd1fe8011_8 $fill in the blank 2b0ae2fd1fe8011_10
A company sells small motors as a component part to automobiles. The Model 101 motor sells for $900 and has per-unit variable costs of $540 associated with its production. The company has fixed expenses of $80,000 per month. In August, the company sold 430 of the Model 101 motors. A. Calculate the contribution margin per unit for the Model 101. Contribution margin $fill in the blank 77c397059fd9060_1 per unit B. Calculate the contribution margin ratio of the Model 101. Contribution margin ratio fill in the blank 77c397059fd9060_2 % C. Prepare a contribution margin income statement for the month of August. Use a minus sign for a net loss if present. Income Statement $fill in the blank 2b0ae2fd1fe8011_2 fill in the blank 2b0ae2fd1fe8011_4 $fill in the blank 2b0ae2fd1fe8011_6 fill in the blank 2b0ae2fd1fe8011_8 $fill in the blank 2b0ae2fd1fe8011_10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company sells small motors as a component part to automobiles. The Model 101 motor sells for $900 and has per-unit variable costs of $540 associated with its production. The company has fixed expenses of $80,000 per month. In August, the company sold 430 of the Model 101 motors.
A. Calculate the contribution margin per unit for the Model 101.
Contribution margin $fill in the blank 77c397059fd9060_1 per unit
B. Calculate the contribution margin ratio of the Model 101.
Contribution margin ratio fill in the blank 77c397059fd9060_2 %
C. Prepare a contribution margin income statement for the month of August. Use a minus sign for a net loss if present.
| Income Statement | |
| $fill in the blank 2b0ae2fd1fe8011_2 | |
| fill in the blank 2b0ae2fd1fe8011_4 | |
| $fill in the blank 2b0ae2fd1fe8011_6 | |
| fill in the blank 2b0ae2fd1fe8011_8 | |
| $fill in the blank 2b0ae2fd1fe8011_10 |
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