A manufacturer of potting soil has the following financial data:Pounds produced and sold31,000Sales$248,000Less: Variable manufacturing costs157,500Fixed manufacturing costs12,600Variable selling and administrative costs37,800Fixed selling and administrative costs18,900Net operating income$21,200(a)What is the company's per unit contribution margin? (Round answer to 2 decimal places, e.g. 1.64.)Per unit contribution margin $

Step 1: Calculate total variable costs Total variable costs = Variable manufacturing costs +…

Answered: A manufacturer of potting soil has the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00 Variable cost per unit: $15.00 Total fixed costs: $100,000 How many units does the company have to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?
Brand Company provides the following information about its single product. Targeted operating income $35,000 Selling price per unit $7.85 Variable cost per unit $6.10 Total fixed cost $96,250 What is the contribution margin per unit at the Brand Company? A) $6.10 B) $1.75 C) $0.22 D) $13.95
A merchandising company has provided the following contribution format incomestatement:Sales (10,000 units) $ 700,000Variable expenses 350,000Contribution margin 350,000Fixed expenses 85,000Net operating income $ 265,000(a) What is the total contribution margin? (b) What is the unit contribution margin? Show your calculations. **Pls help me in clear soultion with accurate answer pls thanks
A tile manufacturer has supplied the following data: Boxes of tiles produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income 520,000 $ 2,132,000 $ 650,000 $ 464,000 $ 260,000 $ 312,000 $ 446,000 If the company increases its unit sales volume by 3% without increasing its fixed expenses, then total net operating income should be closest to: Note: Round your intermediate calculations to 2 decimal places.
The following CVP income statements are available for Sunland Company and Carla Vista Company: Sunland Company Carla Vista Company Sales revenue $370,000 $370,000 Variable costs 222,000 74,000 Contribution margin 148,000 296,000 Fixed costs 98,000 246,000 Operating income $50,000 $50,000 (a) Calculate the break-even point in dollars and the margin of safety ratio for each company. (Round break-even point to the nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.) Sunland Company Carla Vista Company Break-even point $ $ Margin of safety ratio de % %
The Cartwright Company income statement revenue and per unit costs are as follows: Sales $100.00 Variable cost $38.00 Fixed cost $40.00 Operating Income $22.00 Interest $4.40 EBIT $17.60 If the company sells 600 units, what is the degree of operating leverage for the Cartwright Company? (round to two decimal places)
A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales revenue 240,000 Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income $ 944,000 $ 225,000 $ 292,000 $ 105,400 $ 86,000 $ 235,600 The company's contribution margin ratio is closest to:
Tucker Company reports the following data: Sales $415,400 Variable costs 278,300 Contribution margin $137,100 Fixed costs 112,200 Income from operations $24,900 Determine Tucker Company's operating leverage. Round your answer to one decimal place.fill in the blank 1
Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000 units) $1,278,900 Less: Variable costs 879,900 Contribution margin $399,000 Less: Fixed costs 259,800 Operating income $139,200 Required: Question Content Area 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. Break-even units units Break-even dollars 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
Refer to the table below which information refers to Triple A Corp. who produced and sold 50,000 units during a recent accounting period: How much is the contribution margin per unit? Sales 850,000 Manufacturing costs Fixed 210,000 Variable 140,000 Selling and Administrative costs Fixed 300,000 Variable 45,000 income tax rate 40% 1. P 16.60 2. P 31.00 3. P 7.30 4. P 13.30 Group of answer choices 1 2 3 4
A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income The company's contribution margin ratio is closest to: 230,000 $ 934,000 $285,000 $286,000 $ 135,300 $ 84,000 $ 143,700 ○ 38.9% 15.4% ○ 69.4% ○ 55.0%
Teague Co. reports the following data: Sales $489,300 Variable costs 278,900 Contribution margin $210,400 Fixed costs 170,700 Income from operations $39,700 Determine Teague Co.’s operating leverage. Round your answer to one decimal place.fill in the blank 1

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS