Bob's Bike Shop has the following income statement.Sales ($150 per unit)Less Cost of Goods sold ($96per unit)Gross marginLess Operating costsSalariesAdvertisingShipping ($6 per unit)Operating incomeRequired:a.b.d.$150,00096,000$24,00012,00054,0006,000 42,000$ 12,000Calculate the contribution margin per unit.Calculate the contribution margin ratio.Calculate the breakeven point in units. In sales dollars.Calculate the margin of safety in units. In dollars.

Answer:- 1. Contribution margin per unit = Sales price per unit - Variable cost per unit2.…

Answered: Bob's Bike Shop has the following…

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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ceive full credit you must show your as a template. Practice Problems 1)Corp sells several products. Information on average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.50 Direct manufacturing labor $1.15 Manufacturing overhead $0.85 Selling costs $2.50 $125,000 ulations Annual fixed costs How much is operating income if the company sells 15,000 units? 2) If the company decides to lower its selling price by 10%, the operating income is reduced by how r hour: firm (this is conceptually similar to the O/H allocation year 2015, O/H cost estimates total $840,000 for an 2015, it decided to evaluate the use of additional ined that number of design changes, setups, and llowing information was gathered during the analysis: S 0 ! Activity level 300 design changes 5,000 setups 8,000 inspections pital Systems, are expected to use the following lospital Systems 76,000 0 10 38 e O/H cost estimate for Money Managers for a deluxe model.…
Your Company sells 3 products, A, B and C that use the same company, facility and resources. Details are below: A Average monthly units sold 10,000 2,000 8,000 Sales price per unit 2,000 1,000 5,000 Variable cost per unit 1,500 500 3,000 Total break even units are 1,000. 1. Calculate: i. Quantity and value of units of each A, B and C at breakeven Fixed cost based on the data given above ii. 2. Without making further calculations, explain that if fixed cost increases by 10% what impact would this have on the break-even point?
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price…
Cullumber Company makes 2 products, sleep masks and sleep socks. Additional information follows: Sleep Socks 2,800 $34,000 10,004 Units Sales Variable costs Fixed costs Net income Profit per unit Sleep Masks Sleep Masks 4,300 $69,000 38,986 11,954 $18,060 Sleep Socks $4.20 Compute the Contribution margin per unit. (Round answers to 2 decimal places, e.g. 15.25.) 12,012 $ $11,984 $4.28 Contribution margin per unit
Handy Home sells windows (60% of sales) and doors (40% of sales). The selling price of each window is $220 and of each door is $540. The variable cost of each window is $135 and of each door is $370. Fixed costs are $600,950. S (1) Compute the weighted-average contribution margin. Sales mix Windows Doors Contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: 7 Windows Doors Total Weighted-average contribution margin (3) Compute the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. = Total per unit Break Even Units Break Even Units Unit sales at break-even point
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
Wok of Fame, Inc., makes and sells woks at a price of $5.00 per unit. Variable cost is $3.00 per unit. The company's total fixed costs are $52,500. How much must total sales be if Wok of Fame wants to earn an operating income of $17,500? $100,000 $70,000 $175,000 $17,500 $26,250
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Subject :- Accounting

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