Anu's amusement center has collectd..accounting questions Anu's Amusement Center has collected the following data foroperations for the year.Total revenuesTotal fixed costs$2,400,000$656,250Total variable costs $1,350,000Total tickets sold75,000a. What is the average selling price for a ticket?b. What is the average variable cost per ticket?c. What is the average contribution margin per ticket?d. What is the break-even point?

Step 1: Define Contribution MarginThe contribution margin is the percentage by which your company's…

Answered: Anu's Amusement Center has collected…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What is the cost formula for monthly shipping cost? Identify the independent variable, the dependent variable, the fixed cost per month, and the variable rate.
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
A company produces televisions. The cost of producing x televisions per month is given by C(x) = 5,000 + 50x -0.25x². What is the value of the cost function when the marginal cost if $25 ?
Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,430 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $21,870 (a)What is the contribution margin ratio? Contribution margin ratio % (b)What is the break-even point in dollars? Break-even point $ (c)What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio % (d)If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,002 15,174 April 2,664 9,624 May 2,823 12,276 June 3,621 17,777 a.$1.17 b.$0.70 c.$0.66 d.$0.12
What is a good response to this classmates post? For this week's discussion, I will answer: What are the purposes of each margin, and what information do they convey? Contribution margin uses the CPV calculation with C=unit margin, P =unit revenue, and V=unit variable cost. The formula is C=P-V. The contribution margin shows the money each product/unit sold makes after removing the unit variable cost. This can be displayed grossly or per unit (Team, 2024). This margin shows what kind of profit and revenue a particular product can generate after covering the fixed costs. Gross margin is calculated by gross margin = revenue-product cost. Subtracting the direct costs (labor and materials) from the company's revenue will allow the company to see what its gross profit is compared to its revenues as a percentage. The main difference is how the costs are classified by function (product vs. period).
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Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volume
APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company's product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a per-unit basis.…
1. prepare an estimated income statement for 20Y7.
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Johnson Company manufactures and sells a single product. The company's sales and expenses for last year follow: E(Click the icon to view the information.) X Data Table Read the requirements Requirement 1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: Total Per Unit % a. What is the total contribution margin? $ 81,250 $ Sales 25 ? The total contribution margin is $ ? Variable expenses Contribution.margin. 13,000 Fixed expenses $ 19,500 Operating income Done Print

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