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

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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%
The company has a desired net income of $53,991 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.25 and round final answers to O decimal places, eg. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes Brake repair $
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
Company XYZ made total contribution margin of $700,000 and a net income of $100,000. The company also made a total gross margin of $510,000. Assume that the variable selling and administrative expenses were $240,000, how much is the fixed manufacturing cost ($)? O a. 170,000 O b. None of the given answers O c. 600,000 O d. 410,000 O e. 430,000
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Thornton Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. 12 Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 6 per unit $152,000 per year $102,100 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $178,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,400 units, how much could it pay in salaries for salespeople and still have a profit of $178,500? (Hint Use the equation method.) a. Break-even point in units Break-even point in dollars b Required sales in units Required sales in dollars C Fixed cost of salaries
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 (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costs Income 1. Amount of sales 2. Margin of safety 1. Assume Hudson has a target income of $163,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) $ 2,716,000 2,037,000 679,000 441,000 $ 238,000 %
Company XYZ made total contribution margin of $ 300,000 and a net income of $ 140,000. The company also made a total gross margin of $ 270,000. Assume that the variable selling and administrative expenses were $ 80,000, how much is the fixed manufacturing cost ($)? O a. None of the given answers O b. 160,000 Oc 130,000 O d. 50,000 O e 110,000
Choose the correct letter of answer In 20x2 the Cranky Processing Company had the following data coming from its income statement (in Pesos): Sales, P1,200,000; Variable costs: (a) Goods sold, P400,000 and (b) S&A Expenses, P100,000; Fixed costs: (a) Factory overhead, P110,000, and S&A Expenses, P80,000. Income tax rate is 15%. Determine the required peso sales to provide an after-tax net income of P150,000. a. P261,765b. P176,471c. P366,471d. P628,235
Company XYZ made total contribution margin of $400,000 and a net income of $130,000. The company also made a total gross margin of $330,000. Assume that the variable selling and administrative expenses were $120,000, how much is the fixed manufacturing cost ($)? O a. 270,000 Ob. 80,000 O c. 200,000 O d. None of the given answers O e. 190,000
Use the information below to answer the following question. K-CO Company Summary Income Statement Data For the year ended December 31, 2016 S Total S per unit Sales (4,000 units) S 800,000 200.00 100% Total Variable Costs 120.00 60% Contribution Margin Total Fixed Costs 200.000 Operating Income $ 120.000 Calculate K-Co's break-even point (BE) in sales dollars. Select one: O a. $333,333 O b. $800,000 O c. $500,000 O d. $120,000

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