Assume the following information for a company that produced 10,000 units and sold9,000 units during its first year of operations:Per Unit Per YearSelling price $ 200Direct materials $ 69Direct labor $ 50Variable manufacturing overhead $ 12Sales commission $ 8Fixed manufacturing overhead $ 300,000Using variable costing, what is the company's contribution margin?Multiple Choice• $549,000• $423,000• $351,000• $621,000

To compute: Contribution margin = (Selling price per unit - (Direct material cost per unit + Direct…

Answered: Assume the following information for a…

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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Contribution Margin Ratio a. Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribution margin ratio for Young Company?fill in the blank % b. If the contribution margin ratio for Martinez Company is 40%, sales were $34,800,000, and fixed costs were $1,500,000, what was the operating income?$fill in the blank
Bambina corporation, manufacturer of beauty products has the following partially completed manufacturing cost data for its manufacturing The relevant range of production is 800,000 to 1,200,000 per year What is the total cost per unit for the 800,000 units produced
Please help me
Suppose that a company expects the following financial results from a projectduring its first year operation:• Sales revenue: $250.000• Variable costs: $80.000• Fixed costs: $50.000• Total unit produced and sold: 1,000 units(a) Compute the contribution margin percentage.(b) Compute the break-even point in units sold.
The company shows a contribution margin ratio of 25%. The company desires to earn a profit of $15,000 and has fixed costs of $25,000. Determine the sales revenue that would have to be generated in order to earn the desired profit. $340,000 None $240,000 $106,250 $160,000
Contribution Margin Ratio a. Young Company budgets sales of $1,050,000, fixed costs of $80,300, and variable costs of $357,000. What is the contribution margin ratio for Young Company? D% b. If the contribution margin ratio for Martinez Company is 39%, sales were $627,000, and fixed costs were $190,730, what was the operating income?
Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market). Variable cost per unit $ 60 $ 44 Fixed costs per unit (based on capacity) Capacity in units $ 4 20,000 Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes. If the company's divisional managers are evaluated based their division's profits and Division A is currently selling 18,000 units on the outside market, what is Division A's lowest acceptable transfer price if it were to sell 4,000 units to Division B?
At its $45 selling price, Atlantic Company has sales of $22,500, variable manufacturing costs of $7,000, fixed manufacturing costs of $3,000, variable selling and administrative costs of $4,000 and fixed selling and administrative costs of $3,000. What is the company's contribution margin per unit? Multiple Choice $23 $11 $37 $17
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Variable expenses per unit: Direct Material $20Direct Labour $50Variable Manufacturing Overhead $10Fixed expenses: Fixed Manufacturing Overhead $125,000Fixed Selling Costs $75,000Fixed Administrative Costs $100,000 selling price per unit 200 operating income 420000 the business is considering paying a commission to its sales team as part of the sales expansion effort, which should result in an increase in sales revenue. The head of the marketing department has indicated that theeffort of the sales team should result in a 15% increase in sales volume. Calculate the new break-even sales figure, 2) the newmargin of safety and 3) the new operating profit, to determine whether the new sales commission plan isindeed viable.
Coastal Carolina Company has a product with a unit selling price of $200, the unit variable cost is $110, and the total monthly fixed costs are $300,000. What is Coastal Carolina's contribution margin ratio? OA) 182% B) 55% C) 45% OD) 150%
A division sold 250,000 calculators during 2020: Sales 3,000,000 Variable costs: Materials 690,000 Order processing 250,000 Billing labor 200,000 Selling expenses 110,000 Total variable costs 1,250,000 Fixed costs 1,500,000 How much is the unit contribution margin?

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