Amazing Company produces a product that sells for $50. Variable manufacturing costs are $18 per unit. Fixed manufacturing csts are $5 per unit based on the current level of activity and fixed selling and administrative costs are $4 per unit. A sales commission of 20% of sales is paid on each unit sold. The contribution margin per unit is: a.) 40 b.) 22 c.) 28 d.) 32 e.) 25

Q: Nala Nala Corporation sells its product for $195.70 per unit. In 2015 the company had total sales in…

A: Contribution margin is the amount by which a product's sales exceed its variable cost. It is the net…

Q: Molly Company sells 19,000 units at $49 per unit. Costs that vary in total dollar amount as the…

A: Contribution Margin ratio:   It is a ratio that measures the contribution margin generated by the…

Q: ales (54,600 units @ $34) $1,856,400 Total variable cost 1,064,700 Contribution margin $ 791,700…

A: At break-even point, net is $0. So the contribution margin is equal to the total fixed cost.

Q: Hudson Company reports the following contribution margin income statement. Sales (10,700 units at…

A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…

Q: 2. Suppose you manufacture and sell motorcycle helmets. Helmets sell for $25 each. Information about…

A: Formula: Unit Contribution margin = Sales price per unit - variable cost per unit

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (25,000…

A: The contribution margin is the difference between the sales revenue and the variable costs.…

Q: Hudson Company reports the following contribution margin income statement. HUDSON COMPANY…

A: The break-even sales are the sales where the business earns no profit or loss during the period. The…

Q: A firm sells its product for $40 per unit. Its direct material costs are $7 per unit and direct…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Q: 22. The short-run differential costs of a product are $25. Fixed costs are $5 per unit based on…

A: "Since you have asked multiple questions, we will solve only first question for you. If you want any…

Q: Please fill out this chart

A: Step 1: Contribution margin per unit Contribution margin = Selling price per unit - Variable cost…

Q: Mist Company sells two products, blue bowls and green cups. Mist predicts that it will sell 2,500…

A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…

Q: What is the company's margin of safety?

A: The margin of safety is the difference between the total sales revenue and the breakeven point…

Q: Molly Company sells 30,000 units at $43 per unit. Variable costs are $26.66 per unit, and fixed…

A: CVP analysis is used in decision-making by the management. It helps to make strategies and take wise…

Q: A company sells one of the items in its product line for $9.70 each. The variable costs per unit is…

A: The net income is calculated as total revenue less variable cost and less fixed costs. The total…

Q: Mct Company's total sales are $210,000. The company's direct material cost is $25,000. Its direct…

A: given that  , total sales =   210000 direct material cost = 25000…

Q: A company makes a single product that it sells for P16 per unit. Fixed costs are P76,800 per month…

A: Margin of safety is the sales revenue of an entity in excess of its break-even sales. It is the…

Q: 1. High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are…

A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…

Q: Starship Company sells 55,000 units at $14 per unit. Fixed costs are $67,000 and income from…

A: Contribution= Fixed cost+ Net income = $67000+$263000 = $ 330000 Contribution per unit=…

Q: Karim Inc. produces a product that sells for $50. Variable manufacturing costs are $15 per unit.…

A: Sales commission = 10% of sales = $50 x 10% = $5 per unit

Q: Zeus, Incorporated produces a product that has a variable cost of $9 per unit. The company's fixed…

A: Volume of sales in units required to achieve the target profit means the number of units to be sold…

Q: Ferrante Company sells 23,000 units at $50 per unit. Variable costs are $39.50 per unit, and fixed…

A: 1.     CVP analysis is used to identify the changes in costs and volume that affect a company's…

Q: tement

A: A Contribution/Unit = $ 480 B Contribution Margin Ratio = 60 % C  Contribution Margin Income…

Q: Sunn Company manufactures a single product that sells for $130 per unit and whose variable costs are…

A: Formula: Contribution margin per unit = Selling price per unit - Variable cost per unit

Q: An organization manufactures and sells a single product that has a variable cost of $24 per unit and…

A: Introduction: Break-even point is the level of cash necessary to cover the company's entire fixed…

Q: K Company sells a product for $15 per unit. The variable cost per unit is $8, and the fixed costs…

A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

Q: Company A sells a product for $90 per unit. Variable cost is $50 per unit and fixed costs are…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Q: Sally Company sells 39,000 units at $16 per unit. Variable costs are $11.20 per unit, and fixed…

A: We know that under marginal costing  Operating income = Sales Revenue - Total Variable cost - Total…

Q: (A) Explain in detail the meaning of Contribution Margin. (B) Robeson Company estimates it will…

A: Part A:  The contribution margin is also known as dollar contribution per unit. It is calculated as…

Q: Concord Corporation’s contribution margin is $22.50 per unit for Product A and $35 for Product B.…

A: When resources like labour hour or machine hours are limited, then contribution margin per that…

Q: Molly Company sells 29,000 units at $48 per unit. Variable costs are $27.36 per unit, and fixed…

A: Contribution Margin Ratio: Contribution Margin is the residual value which is computed by deducting…

Q: 1. A company makes a single product which it sells for $2 per unit. Fixed costs are $13,000 per…

A: Contribution margin is defined as the portion of revenue left with an entity after it has disbursed…

Q: Bluegill Company sells 13,900 units at $120 per unit. Fixed costs are $83,400, and operating income…

A: The variable cost per unit can be calculated from the net operating income and sales data. The…

Q: Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80;…

A: Total variable costs = direct materials + direct labor + manufacturing overhead selling costs…

Q: Salisbury Corporation has been producing and selling 30,000 caps a year. The company has the…

A: Minimum Acceptable Price :— It is variable cost per unit plus contribution loss per unit.…

Q: AJ Company makes three products. Current selling price per unit, variable cost per unit, and machine…

A: Contribution Margin per unit=Selling Price per unit-Variable cost per unit

Q: Assume that Bisque Co. sold 12,000 units of Product A and 18,000 units of Product B in the last…

A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…