Bernoulli's business budget included sales of $350 000 and fixed costs of $52 600. If the total contribution margin for the business was $125 000: a)Find the contribution rate as a percentage approximated to nearest 100th. b)What are the sales needed to break even?

Bernoulli's business budget included sales of $350 000 and fixed costs of $52 600. If the total contribution margin for the business was $125 000: a)Find the contribution rate as a percentage approximated to nearest 100th. b)What are the sales needed to break even?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: . Young Company budgets sales of $830,000, fixed costs of $14,900, and variable costs of $66,400.…

A: For Part a.Contribution Margin Ratio = Sales - Variable costsSalesFor Part b.Income from Operations…

Q: a. Imelda Company budgets sales of $850,000, fixed costs of $19,100, and variable costs of $85,000.…

A: SOLUTION: Contribution Margin Ratio: Contribution Margin Analysis is a technique of cost volume…

Q: Given the following for Silver Company in 2019: revenues P5,300,000, manufacturing costs P2,200,000…

A: The contribution margin is the difference between sales revenue & Variable cost. Contribution…

Q: Assume Hairy-Cairy Salon, a hair styling salon in Matthews, NC, provides cuts, perms, and…

A: The objective of the question is to determine the sales dollar volume required for Hairy-Cairy Salon…

Q: Please give answer the question

A: 1. Direct labor rate per hourThe direct labor rate per hour is given by the formula : Direct labor…

Q: ixed expenses were $36,900. Required: 1. What is the company's contribution margin (CM) ratio? 2.…

A: Contribution Margin Ratio is percentage difference between corporate revenues and variable costs.…

Q: a. Young Company budgets sales of $1,040,000, fixed costs of $53,800, and variable costs of…

A: Contribution margin refers to the amount that the company earned from selling goods more than its…

Q: 2. Krueger Ltd. wishes to earn a profit equal to 40% of sales revenue. Its monthly fixed costs are…

A: Break even sales refers to that level of sale where the profit is zero that means the sale is just…

Q: How do I work this problem using excel? Calculate the break even sales dollars if the fixed…

A: Break-even sales dollars = Fixed costs / contribution ratio

Q: a. Coastal Company budgets sales of $870,000, fixed costs of $62,600, and variable costs of…

A: The objective of the first part of the question is to calculate the contribution margin ratio for…

Q: In the fiscal year just concluded, the University Shop reported net income of. P4,000,000 on sales…

A: Fixed costs are those costs which do not change with change in level of activity. Fixed costs =…

Q: Adidas Co., has a sale of $2,100,000 (7,000 units), fixed expenses are $504,000, and the…

A: Introduction: Margin of safety : Deduction of break even sales from Actual sales derives the Margin…

Q: The controller of Pelly Corporation prepared the following projected income statement: Sales -…

A: A) Calculation of the contribution margin ratio: Contribution margin ratio = (Contribution margin /…

Q: Young Company budgets sales of $1,210,000, fixed costs of $68,100, and variable costsof $302,500.…

A: Contribution margin ratio (%)=Contribution marginBudgeted sales×100

Q: a. Yountz Company budgets sales of $1,190,000, fixed costs of $50,900, and variable costs of…

A: Income from operations is the difference between contribution margin and fixed costs. Contribution…

Q: a. Coastal Company budgets sales of $1,070,000, fixed costs of $55,400, and variable costs of…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how…

A: Cost-volume-profit analysis is a technique that is used to determine the impact of costs and sales…

Q: he contribution margin ratio is 25% for your company and the break-even point in sales revenue is…

A: Break even sales in dollars = Fixed expense / Contribution Margin Ratio Contribution margin =…

Q: total bill (excluding tax and tip) is $12 per customer. Assume that fixed costs increase to…

A: Let the number of meal be x. Bill amount 12.00X Less : Variable cost 9.60X Contribution 2.40X…

Q: During March, a firm expects its total sales to be $162,000, its total variable costs to be $95,200,…

A: Ans. Contribution margin is calculated by deducting variable cost from total sales.

Q: Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 85 100%…

A: CVP analysis is an important tool to analyze the effect of changes in various variables on the net…

Q: Last month when Holiday Creations, Incorporated, sold 41.000 units, total sales were $164,000, total…

A: Formula: Contribution margin ratio = ( Contribution margin / Total sales ) x 100

Q: A company’s contribution margin per unit is $25. If the company increases its activity level from…

A: The additional money generated from selling a product after deducting the variable cost from the…

Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $179,300, how…

A: Break even point ( in dollars ) = Fixed costs / Contribution margin ratio

Q: The contribution margin ratio is 25% for Your Company and the break-even point in sales revenue is…

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

Q: Maack Corporation's contribution margin ratio is 18% and its fixed monthly expenses are $49,000. If…

A: Step 1: Introduction to CVP AnalysisCVP analysis, or cost-volume-profit analysis, is a management…

Q: Your Corporation’s contribution margin ratio is 29% and it’s fixed monthly expenses are $17,000. If…

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

Q: didas Co., has a sale of $2,100,000 (7,000 units), fixed expenses are $504,000, and the contribution…

A: Sales price per unit = Total sales / no. of units sold = $2,100,000 / 7,000 units = $300 per unit

Q: Help fill this out

A: We are given that contribution margin ratio is 75% or 0.75 as we need to change it in whole number…

Q: 3) Popular Inc. produces and sells two products. During the most recent month, Pen's sales were…

A: The contribution margin is calculated as difference between sales and variable costs. CM = Sales -…

Q: The data to the right pertain to the operating budget of a manufacturing company. Compute the…

A: Break Even Point - Break Even Point is the point where company recover all its cost. It is the point…

Q: rtising, sales could be increased by 20%. What is the maximum increased advertising cost the company…

A: Advertising cost refers to the expenses that are involved in the promotional activities of the…

Q: In March, Roland had revenues of $612,000 fixed costs of $199,260, and a profit of $51,660. Answer…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Last year, Flynn Company reported a profit of $70,000 when sales totaled $520,000 and the…

Q: Salt Corporation's contribution margin ratio is 75% and its fixed monthly expenses are $55,000.…

A: Formula: Net operating income = Contribution margin value - Fixed expenses. Deduction of fixed…

Q: ger of a local restaurant spends $8,500 for its monthly fixed cost. Its variable co we the amount of…

A: Answer : Contribution margin to generate desired EBT =Desired EBT + fixed cost Contribution margin…

Q: A corporation's contribution margin ratio is 74% and its fixed monthly expenses are $42,000. Assume…

A: The contribution margin is calculated as difference between sales and variable costs. The net income…

Q: i need full details solution with explanation......

A: The objective of the question is to prepare a contribution format income statement for DEF Company,…

Q: Sarratt Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $38,000.…

A: The contribution margin is calculated as the difference between sales and variable costs. Net income…

Q: a. Yountz Company budgets sales of $1,130,000, fixed costs of $68,600, and variable costs of…

A: A.) Given : Sales-1,130,000 Variable costs- $305,100 Contribution Margin= Sales - Variable Costs…

Question

Bernoulli's business budget included sales of $350 000 and fixed costs of $52 600. If the total contribution margin for the business was $125 000:

a)Find the contribution rate as a percentage approximated to nearest 100^th.

b)What are the sales needed to break even?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Industry analysis: Project management in construction industry

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how many dollars of revenue must the company generate in order to reach the break-even point? Round to two decimal places.
If Swannanoa Company's budgeted sales are $800,000, fixed costs are $250,000, and variable costs are $500,000, what is the budgeted contribution margin ratio? If the contribution margin ratio is 35%, sales are $900,000, and fixed costs are $200,000, what is the operating income?
If the food cost is $250,000 and the total labor cost is $300,000 and sales are $1,000,000, what is the prime cost in $?
The contribution margin ratio is 20% for Grain Company and the break-even point in sales is $200,000. To obtain a target net operating income of $60,000, sales would have to be: Answer:
19 )
I need help with parts 1 and 2
Steven pulled together the following annual revenue and cost information for his small business: total variable costs $7,600, total COGS $6,000, total revenues $23,400, total fixed costs $4,700, and total SG&A $6,300. Determine the contribution margin, gross margin, and operating income for Steven for the year. Contribution margin Gross margin Operating income tA $ tA $ tA $
Information concerning a company's products is as follows: Sales, $300,000; Variable costs, $240,000; Fixed costs, $40,000. Assuming that the company increased sales of the product by 25%, what should the operating income be?
Seabold Interiors sold 18,400 yards of wallpaper last year at a contributionmargin of $3.50 per yard and incurred $49,400 in total fixed costs. This year, contribution margin per yard is expected to increase to $4, and fixed costs are expected to increase to $58,000. How many units must be sold this year to earn the same operating income as was earned last year? (Hint: Use the expanded contribution margin model described in this chapter.)a. 16,900.b. 17,500.c. 18,250.d. 20,200.e. None of the above.
The contribution margin ratio of Donath Corporation's only product is 65%. The company's monthly fixed expense is $573,300 and the company's monthly target profit is $9,100. Required: Determine the dollar sales to attain the company's target profit.
a. Imelda Company budgets sales of $1,800,000, fixed costs of $394,000, and variable costs of $1,116,000. What is the contributior margin ratio for Imelda Company? (Enter your answer as a whole number.) % b. If the contribution margin ratio for Peppa Company is 42%, sales were $2,500,000, and fixed costs were $590,000, what was the income from operations?