### Educational Website Content#### Contribution Margin Analysis for Barnes Company**Required Information:***The following information applies to the questions displayed below:*Barnes Company reports the following for its product for its first year of operations:- **Direct Materials:** $30 per unit- **Direct Labor:** $20 per unit- **Variable Overhead:** $11 per unit- **Fixed Overhead:** $60,000 per year- **Variable Selling and Administrative Expenses:** $3 per unit- **Fixed Selling and Administrative Expenses:** $22,000 per yearThe company sells its product for $150 per unit. Compute the contribution margin using variable costing assuming the company (a) produces and sells 2,400 units, and (b) produces 3,000 units and sells 2,400 units.---### Computation of Contribution Margin Using Variable Costing#### Scenario A: 2,400 Units Produced and 2,400 Units Sold- **Sales:** $360,000- **Variable Expenses:** - **Direct Materials:** $72,000 - **Direct Labor:** $48,000 - **Variable Overhead:** $26,400 - **Variable Selling and Administrative Expenses:** Not listed in the table - **Total Variable Expenses:** (These should be summed but figures for Variable Selling and Administrative Expenses are missing) - **Contribution Margin:** $213,600#### Scenario B: 3,000 Units Produced and 2,400 Units Sold- **Sales:** $360,000- **Variable Expenses:** - **Direct Materials:** $90,000 - **Direct Labor:** $60,000 - **Variable Overhead:** $33,000 - **Variable Selling and Administrative Expenses:** Not listed in the table - **Total Variable Expenses:** (These should be summed but figures for Variable Selling and Administrative Expenses are missing) - **Contribution Margin:** $147,000**Note:** The answer is complete but not entirely correct because the given values do not account for all variable expenses such as variable selling and administrative expenses, as indicated by the discrepancy in the contribution margin calculation for both scenarios. ### Analysis of Diagrams- **Table Headings:** The table contains two primary scenarios for analysis—Scenario (a) and Scenario (b). - **Sales Row:** Indicates the total revenue generated from

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Description: ### Educational Website Content#### Contribution Margin Analysis for Barnes Company**Required Information:***The following information applies to the questions displayed below:*Barnes Company reports the following for its product for its first year

Contribution Margin -Contribution Margin is a profit after deducting variable costs from the sales…

Business

Accounting

Barnes Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead $ 30 per unit $20 per unit $ 11 per unit $ 60,000 per year $3 per unit Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 22,000 per year

Barnes Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead $ 30 per unit $20 per unit $ 11 per unit $ 60,000 per year $3 per unit Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 22,000 per year

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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Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,150 rackets and sold 4,980. Each racket was sold at a price of $90. Fixed overhead costs are $79,950 per year, and fixed selling and administrative costs are $65,600 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Prepare an income statement under variable costing. Contribution margin Less: Fixed expenses Income X Answer is not complete. Sales Less: Variable expenses Variable selling and administrative expenses Variable cost of goods sold ACES INCORPORATED Income Statement (Variable Costing) Fixed overhead Fixed selling and administrative expenses $ 448,200 2852 $12
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Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,800 rackets and sold 4,700. Each racket was sold at a price of $88. Fixed overhead costs are $74,240 for the year, and fixed selling and administrative costs are $65,000 for the year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Required: Prepare an income statement under variable costing. $ 11.94 7.94 4.92 1.80
Swisher, Incorporated reports the following annual cost data for its single product: Normal production level 30,000 units Direct materials $6.40 per unit Direct labor $3.93 per unit Variable overhead $5.80 per unit Fixed overhead $150,000 in total This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's income increase or decrease under variable costing? $60,000 decrease. b. $90,000 decrease. c.There is no change in gross margin. d. $90,000 increase. e. $60,000 increase.
Yancey, Inc. reports the following information: Units produced Units sold Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 580 units 580 units $130 per unit $10 per unit $25 per unit - $30 per unit $22,000 per year Variable selling and administrative costs Fixed selling and administrative costs $20 per unit $15,000 per year What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.) OA. $95.00 OB. $72.93 OC. $102.93 OD. $62.93
Isaac Company has estimated the following costs for this year for 240,000 units: Manufacturing Selling & Administrative Variable $150,000 $65,000 Fixed 350,000 135,000 Total $200,000 $500,000 Calculate the manufacturing cost markup needed to obtain a target profit of $100,000.