Ayayai Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 2,000 2,500 Sales $48,000 $20,000 Variable costs 19,200 11,000 Fixed costs 8,000 4,200 Net income $20,800 $4,800 Yards of leather per unit 1.25 0.30 Net income per unit $10.40 $1.92 Unit contribution margin $14.40 $3.60 Assume that Ayayai is able to order an additional 2,000 yards of leather and wishes to maximize its net income. Of the additional units it produces, at least 400 of each product are necessary for sales. How many units of each must be produced? (Round contribution margin per yard to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 5,275.)
Q: MultiproductGreen Rider makes three types of electric scooters. The company’s total fixed cost is…
A: a. Break-Even PointScootersUnitsDollar SalesMod506,250$ 1,113,750,000Rad843,750$…
Q: Waterway Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures…
A:
Q: Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two…
A: The objective of the question is to determine the breakeven point in total units and sales dollars…
Q: Mountain Technical manufactures mountaineering tents. It has fixed costs of $8,280,000. Mountain…
A: First we need to find sales mix ratio = 48000 units : 72000 units : 40000 units Total = 48000 +…
Q: Blossom Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: Sheffield Company manufactures and sells two products. Relevant per-unit data concerning each…
A: Contribution margin per usage of a limiting reagent is calculated by dividing the contribution…
Q: Sandhill, Inc. produces three types of balloons—small, medium, and large—with the following…
A: We can see that large balloons contribute the most per unit but it also takes the most machine hours…
Q: Rosenberg Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The…
A: Break Even Point : Break-even point refers a scenario there is neither profit nor loss. It is said…
Q: Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses…
A: Contribution margin per unit is the difference between the sales and variable cost but when there is…
Q: Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material.…
A: The contribution margin helps in analyzing the amount left with the company after paying off its…
Q: Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is also known as Contribution…
Q: break-even point
A: We know that as per Marginal costing Selling price less variable cost less fixed cost = Net income…
Q: Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans…
A: Break even point (Units)= Fixed cost / Contribution margin per unit Break even point ($)= Fixed…
Q: Ivanhoe Company manufactures and sells two products. Relevant per-unit data concerning each product…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: Ramada Company produces one golf cart model. A partially complete table of company costs follows:…
A: Cost Volume Profit (CVP) Analysis helps in analysing the relationship between the costs, sales…
Q: Marley Corporation makes three products (X, Y, & Z) with the following characteristics: Products Y X…
A: Contribution margin means sales revenue over and above variable costs. In case of limited resources,…
Q: Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable…
A: A contribution margin is an excess value of revenue over the variable cost. The overall contribution…
Q: SBD Phone Company sells its waterproof phone case for $122 per unit. Fixed costs total $262,000, and…
A: To decide the business volume at the desired degree of benefit, the current equation for discovering…
Q: Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the…
A: Predetermined rate means the indirect cost rate. It is a rate that is used to allocate estimated…
Q: unland, Inc. produces three types of balloons—small, medium, and large—with the following…
A: Calculate the contribution margin per hour:
Q: Staley Co. manufactures electronic equipment. The following is a summary of its basic cost and…
A: Contribution margin: The difference between the sales and the variable costs is called the…
Q: Blossom, Inc. produces three types of balloons—small, medium, and large—with the following…
A: Since the machine hours are limited, it needs to be considered while making the decision so as to…
Q: Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two…
A: Cost-volume-profit analysis is conducted by the companies to determine the units that are required…
Q: Required: 1. Calculate the contribution margin per pound of the constraining resource for each…
A: Contribution Margin is the difference between the total sales and the total variable cost.Sometimes…
Q: Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
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: Tamarisk Company manufactures and sells two products. Relevant per-unit data concerning each product…
A: When the availability of resources is limited, companies want to utilize these limited resources to…
Q: Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two…
A: At the breakeven point, a company is able to recover its fixed costs only. It means, at the…
Q: Carla Vista Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures…
A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…
Q: Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per…
A: The contribution margin is calculated by deducting the variable cost from the sales revenues of the…
Q: Blossom Co. is considering the introduction of three new products. Per unit sales and cost…
A: Calculate contribution margin per hour A B C Selling price 3.00 5.00 12.00 Variable…
Q: Crane Company manufactures and sells two products. Relevant per unit data concerning each product…
A: Contribution Per Unit = Selling Price - Variable Cost Per Unit
Q: Switch Manufacturing Co. builds and sells switch harnesses for glove boxes. The sales price and…
A: The break-even point seems to be the level of activity at which a company's overall revenue equals…
Q: Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per…
A: Introduction: The concept of contribution margin can be tailored to individual items, product lines,…
Q: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the…
A: Variable costs are those nature of costs which changes along with change in sales activity level.…
Q: Gerin Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two…
A: The break-even point indicates that total units are to be sold by the business entity to recover its…
Q: Sunland Company produces earrings, bracelets, and necklaces that are in high demand. Following is…
A: In order to find sequence should Sunland fill orders for the three products, the products should be…
Q: Riverside Incorporated makes one model of wooden canoe. Partial Information for it follows: Number…
A: net operating income is computed as sales less variable costs less fixed costs
Q: Winter Grow Inc. manufactures a range of heat mats. The production information for its standard heat…
A: Special order decisions are those decisions which helps in deciding whether to accept the special…
Q: Product A B C Selling price $ 92.00 $ 66.00 $ 82.00 Variable expenses: Direct…
A: The contribution margin is calculated as the difference between the revenue and variable costs. The…
Q: Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material.…
A: Contribution Margin = it is the part of Marginal Costing. It is the one of the important part of…
Q: A $ 80.00 24.00 24.00 48.00 $ 32.00 40% Product B $ 62.00 18.00 25.40 43.40 $18.60 30% с $ 81.00…
A: The contribution margin is the money used to pay off fixed costs. It is the excess of sales revenue…
Q: llery Corporation makes two products, footb
A: The contribution margin is a valuable indicator for determining the profitability of specific goods…
Q: Sandhill Company makes three models of tasers. Information on the three products is given below.…
A: Variable cost Depends upon the production of goods or services that is increment of sales increases…
Q: Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material.…
A: Contribution margin per unit = Selling price per unit - Variable costs per unit Contribution margin…
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
- Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Basic $ 19.00 $ 12.00 36,000 Custom $ 54.00 $ 33.00 24,000 Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $396,900. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. Note: Do not round Intermediate calculations. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Note: Do not round intermediate calculations.Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Brighter 400 Cleaner 600 Unit sales price Unit variable cost $ 1,000 200 $ 1,000 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $290,000. Required: 1. Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix (on the basis of relative sales volume in units) remains constant. Use the weighted-average contribution margin approach. 2. At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requirement 2 may differ slightly than in Requirement 1. 3. Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1. Complete this…CVP single product; comprehensiveBeantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual production and sales are 960,000 baseballs. Costs for each baseball are as follows:Direct material$2.00Direct labor1.25Variable overhead0.50Variable selling expenses0.25Total variable cost$4.00Total fixed overhead$1,250,000a. Calculate the unit contribution margin in dollars and the contribution margin ratio for the company.Note: Round percentage to two decimal places (for example, round 32.5555% to 32.56%).Unit contribution margin in dollars $AnswerContribution margin ratio Answer%\\n
- Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $86,500. Required: $ 76,600 41,400 $ 46,000 5,000 $ 123,400 52,800 $ 91,000 5,000 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. 4. Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer…Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows: Atlantic Wave Pacific Pounder Sales price $450 $400 Variable cost of goods sold per unit (167) (192) Manufacturing margin per unit $283 $208 Variable selling expense per unit (202) (112) Contribution margin per unit $81 $96 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast Atlantic Wave 2,440 1,220 Pacific Pounder 0 1,220 Question Content Area a . Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory as a whole percent, rounded to two decimal places, if required.The following information is for Bullwinkle Industries Inc.: Line Item Description East West Sales volume (units): Product Alpha 45,000 38,000 Product Omega 60,000 50,000 Sales price: Product Alpha $500 $600 Product Omega $250 $225 Variable cost per unit: Product Alpha $275 $275 Product Omega $140 $140 a. Determine the contribution margin for the East Region and West Region.East Region: fill in the blank 1 of 2$West Region: fill in the blank 2 of 2$ b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.East Region: fill in the blank 1 of 2%West Region: fill in the blank 2 of 2%
- Ivanhoe Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 151,100 203,300 138,600 Contribution margin 144,900 300,700 61,400 Fixed expenses 116,616 228,184 93,900 Net income $28,284 $72,516 $(32,500) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,700 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income.(a)Compute current net income for Ivanhoe Company. Net income $ (b)Compute net income by product line…Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit. Selling price per unit Skateboards $ 200 Scooters) $ 400 120 310 Variable costs per unit (a) Compute the contribution margin per unit (b) Compute the contribution margin per machine hour (a) Contribution margin pet und Contion margm per machine hour Skateboards ScootersRiverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 455 605 755 Total costs Variable costs $ 65,065 149,700 $214,765 ? Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? ? ? ? ? Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin rati 4. Next year Riverside expects to sell 805 canoes. Complete the contribution margin income statement for the company. Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 4 Complete the table. (Round your cost per unit answers to 2 decimal places.) Number of Canoes Produced and Sold 455 605 755 Total Costs Variable Costs 2$ 65,065 Fixed Costs 149,700 Total Costs $ 214,765 $ $ Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $ 0.00 $ 0.00 $ 0.00 Complete this…
- Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Sandy Bank sells its canoes for $375 each. 450 Required 1 Required 2 $ 69,750 $ 468,000 $ 537,750 Required 3 $ 155.00 1,040.00 $ 1,195.00 650 $ 100,750 $ 468,000 $ 568,750 $ 155.00 720.00 $ 875.00 Complete this question by entering your answers in the tabs below. 800 Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales pr $500) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit. $ 124,000 $ 468,000 $ 592,000 $ 155.00 585.00 $ 740.00 Suppose that Sandy Bank raises its selling…Ramirez Corp. has two customers, C1 and C2. Ramirez Corp currently allocates indirect costs to customers at a rate of 5% of customer revenue. Data for C1 and C2 are as follows: C1 C2 Selling Price per Unit $20.00 $20.00 Units Sold 50,000 12,000 Manufacturing Cost per unit $15.00 $15.00 Number of Purchase Orders 112 27 Number of deliveries 105 68 Number of Inspection 77 50 Customer Visits 40 35 A. Using the current costing system to allocate support costs, calculate Operating Income for customers C1 and C2. Ramirez Corp.'s Management Accountant has gathered the following ABC rate information: ABC Cost Rate Number of purchase orders $40 per purchase order $85 per delivery $200 per expedited delivery Number of deliveries Number of inspections Number of customer visits $400 per customer visit b. Calculate the total support cost allocated to C1 & C2 using the Activity Based Costing (ABC) system. c. Comparing the indirect cost allocated in part a. to the indirect cost allocated in part b.…Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 84.00 25.20 25.20 50.40 $ 33.60 40% Required 1 Required 2 Required 3 21.00 31.50 52.50 $ 17.50 25% с $ 74.00 The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Contribution margin per pound of the constraining resource Product C