Bradley Company manufactures a single product that sells for $360 per unit and whose variable costs are $270 per unit. The company’s annual fixed costs are $1,125,000. The contribution margin ratio is:
Q: Nala Nala Corporation sells its product for $195.70 per unit. In 2015 the company had total sales in…
A: Contribution margin is the amount by which a product's sales exceed its variable cost. It is the net…
Q: Molly Company sells 19,000 units at $49 per unit. Costs that vary in total dollar amount as the…
A: Contribution Margin ratio: It is a ratio that measures the contribution margin generated by the…
Q: ales (54,600 units @ $34) $1,856,400 Total variable cost 1,064,700 Contribution margin $ 791,700…
A: At break-even point, net is $0. So the contribution margin is equal to the total fixed cost.
Q: Rooney Corporation sells products for $38 each that have variable costs of $17 per unit. Rooney's…
A: Break-even point is a financial term that refers to the level of sales at which a business neither…
Q: Molly Company sells 38,000 units at $36 per unit. Variable costs are $27.36 per unit, and fixed…
A: Fixed cost is the cost does not change with the change in the units manufactured, while variable…
Q: Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively.…
A: Contribution margin = Selling price per unit - Variable cost per unit. Total contribution margin =…
Q: Wells corporation has the following sales mix for its three products: A,20% B,35%,and C,45%.Fixed…
A: Break-even analysis is a technique used widely by the production management. It helps to determine…
Q: on sells products for $43 each that have variab ual fixed cost is $638,000. ontribution margin…
A: Breakeven point is where the fixed cost equals the contribution margin . At breakeven point there is…
Q: Madison Company produces a single product which sells for $60 per unit. Fixed expenses total $16,800…
A: Contribution margin per unit = selling price per unit - variable cost per unit…
Q: What exactly is a genuine account?
A: Genuine account: Genuine account is generally referred to as a real account. Real accounts are…
Q: Zhao Co. has fixed costs of $429,000. Its single product sells for $187 per unit, and variable costs…
A: Contribution margin per unit = unit selling price - unit variable cost Target Sales units = (Fixed…
Q: Blanchard Company manufactures a single product that sells for $175 per unit and whose total…
A: Selling price per unit =$175 Variable cost per unit=$140 Annual fixed cost=$514,500 Contribution…
Q: Bluegill Company sells 13,700 units at $400 per unit. Fixed costs are $274,000, and income from…
A: Formula: Contribution margin = Selling price - variable cost Deduction of variable cost from selling…
Q: Ferrante Company sells 40,000 units at $16 per unit. Variable costs are $12.80 per unit, and fixed…
A: solution: CM ratio = CM per unit / Selling price per unit Unit contribution margin =Selling price…
Q: Zeke Company sells 25,300 units at $16 per unit. Variable costs are $10 per unit, and fixed costs…
A: Contribution margin: The difference between the sales and the variable costs is called contribution…
Q: United Merchants Company sells 18,000 units at $25 per unit. Variable costs are $19.25 per unit, and…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: Zeke Company sells 24,600 units at $15 per unit. Variable costs are $7 per unit, and fixed costs are…
A: The contribution margin per unit is calculated as the difference between the sales and variable…
Q: Zeke Company sells 25,900 units at $18 per unit. Variable costs are $8 per unit, and fixed costs are…
A: Contribution margin = Sales - variable cost = $18 - $8 = $10 Contribution margin ratio =…
Q: Bluegill Company sells 15,700 units at $260 per unit. Fixed costs are $204,100, and operating income…
A:
Q: John's Company owns three production lines A, B, and C, and each production line achieves a…
A: Break Even Point Under Multiplicity of Product means the total quantity of units sold of each…
Q: Event Company produces a single product with the following characteristics: price per unit $24.00,…
A: Sales required to earn desired or target profit is calculated by dividing the sum of total fixed…
Q: Ferrante Company sells 23,000 units at $50 per unit. Variable costs are $39.50 per unit, and fixed…
A: 1. CVP analysis is used to identify the changes in costs and volume that affect a company's…
Q: Munoz Company incurs annual fixed costs of $125,220. Variable costs for Munoz’s product are $28.80…
A: Sales in dollars means the amount of sales revenues earned by the entity, by selling the goods in…
Q: Penny Company sells 25,000 units at $75 per unit. Variable costs are $30 per unit, and operating…
A: The contribution is calculated as the difference of selling price and variable cost. Contribution…
Q: Sally Company sells 39,000 units at $16 per unit. Variable costs are $11.20 per unit, and fixed…
A: We know that under marginal costing Operating income = Sales Revenue - Total Variable cost - Total…
Q: Bluegill Company sells 13,600 units at $140 per unit. Fixed costs are $95,200, and operating income…
A: Fixed costs are those costs that do not change with the output level. Total variable costs changes…
Q: Munoz Corporation sells products for $28 each that have variable costs of $15 per unit. Munoz’s…
A: INTRODUCTION:- This question is asking us to use the per-unit contribution margin approach to…
Q: Molly Company sells 29,000 units at $48 per unit. Variable costs are $27.36 per unit, and fixed…
A: Contribution Margin Ratio: Contribution Margin is the residual value which is computed by deducting…
Q: Bluegill Company sells 13,900 units at $120 per unit. Fixed costs are $83,400, and operating income…
A: The variable cost per unit can be calculated from the net operating income and sales data. The…
Q: Bluegill Company sells 15,500 units at $220 per unit. Fixed costs are $170,500, and operating income…
A: Total sales revenue - Variable cost = Contribution margin And Contribution margin - Fixed cost =…
Q: Stuart Company incurs annual fixed costs of $97,920. Variable costs for Stuart's product are $30.60…
A: Sales level at which the company will earn the desired profit, is known as sales required to earn…
Q: Ferrante Company sells 26,000 units at $12 per unit. Variable costs are $10.08 per unit, and fixed…
A: Unit contribution margin = Selling price - Unit variable cost Contribution margin ratio = Unit…
Q: Zeke Company sells 25,500 units at $18 per unit. Variable costs are $8 per unit, and fixed costs are…
A: Unit contribution margin = Selling price per unit - Variable cost per unitCcontribution margin ratio…
Q: A company has fixed costs of $320,000 and a contribution margin per unit of $15. If the company…
A: The objective of the question is to find out the number of units that the company needs to sell in…
Q: Blanchard Company manufactures a single product that sells for $160 per unit and whose total…
A: Break-even point (units)=Annual fixed costsSelling price-Variable cost per unit
Q: Munoz Corporation sells products for $44 each that have variable costs of $19 per unit. Munoz's…
A: The breakeven point is the sales level at which a company covers all its costs, resulting in neither…
Q: Rooney Corporation sells products for $28 each that have variable costs of $15 per unit. Rooney's…
A: 1) breakeven point in units = fixed cost / contribution per unit 2) break even point in…
Q: Perez Company incurs annual fixed costs of $120,540. Variable costs for Perez’s product are $27.90…
A: Variable costs are those costs which changes along with change in activity level. Fixed costs are…
Q: United Merchants Company sells 17,000 units at $10 per unit. Variable costs are $6.40 per unit, and…
A: Formula: Contribution margin = Selling price - variable cost Deduction of variable cost from selling…
Q: Wang Company manufactures and sells a single product that sells for $640 per unit; variable costs…
A: Target unit sales refer to the specific quantity of products a company aims to sell within a set…
Q: morning view industries manufactures and sells a product for $100 per unit. the annual fixed costs…
A: Breakeven sales units are the quantity of units sold that leads to a net income of zero. This means…
Q: Rooney Corporation sells products for $38 each that have variable costs of $17 per unit. Rooney's…
A: Contribution means the difference between the selling price and variable cost. Break even point…
Q: Zeke Company sells 24,500 units at $15 per unit. Variable costs are $7 per unit, and fixed costs are…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Bradley Company manufactures a single product that sells for $360 per unit and whose variable costs are $270 per unit. The company’s annual fixed costs are $1,125,000. The contribution margin ratio is:
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Rothe Company manufactures and sells a single product that it sells for $90 per unit and has a contribution margin ratio of 35%. The company's fixed expenses are $46,800. If Rothe desires a monthly target net operating income equal to 15% of sales, the number of sales in units will have to be (rounded)?Jordan Company incurs annual fixed costs of $51,415. Variable costs for Jordan's product are $3015 per unit, and the sales price is $45.00 per unit. Jordan desires to earn an annual profit of $56,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in unitsDrake Company produces a single product. Last year's income statement is as follows: Sales (21,000 units) $1,278,900 Less: Variable costs 879,900 Contribution margin $399,000 Less: Fixed costs 259,800 Operating income $139,200 Required: Question Content Area 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. Break-even units units Break-even dollars 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
- Chung, Inc. sells 100,000 wrenches for $24 per unit. Fixed costs are $700,000 and net income is $500,000. What should be reported as variable expenses in the contribution margin income statement? $1,080,000 $1,200,000 $1,900,000 $1,700,000Drake Company produces a single product. Last year's income statement is as follows: Sales (25,000 units) $1,532,500 Less: Variable costs 1,027,500 Contribution margin $505,000 Less: Fixed costs 273,600 Operating income $231,400 Required: 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. Break-even units units Break-even dollars $ 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar. 3. Suppose that Drake Company is considering an investment in new technology that will increase fixed costs by $216,600 per year, but will lower variable costs to 50 percent of sales. Units sold will remain unchanged. Prepare a budgeted income statement assuming Drake makes this…Giddings Company manufactures and sells a single product, Product G. The product sells for $60 per unit and has a contribution margin ratio of 40 percent. The company's monthly fixed expenses are $28,800. If the selling price is reduced by 5%, variable costs per unit reduced by $1.00, and fixed costs increased to a total of $40,750, how many units would need to be sold to earn operating income equal to 10% of sales revenue? (Ignore income taxes.)
- Campbell Corporation sells products for $31 each that have variable costs of $18 per unit. Campbell's annual fixed cost is $295,100. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars.Sunn Company manufactures a single product that sells for $215 per unit and whose variable costs are $172 per unit. The company's annual fixed costs are $597,700. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: (c) Compute the company's break-even point in units. 1 1 Numerator: 1 1 Numerator: Denominator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: = = II II = Contribution Margin Ratio Contribution margin ratio Break-Even Units Break-even units Break-Even Dollars Break-even dollarsMunoz Company incurs annual fixed costs of $121,320. Variable costs for Munoz's product are $22.40 per unit, and the sales price is $35.00 per unit. Munoz desires to earn an annual profit of $45,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number. Sales in dollars Sales volume in units
- ABC Corporation sells its product for $195.70 per unit. In 2015 the company had total sales in units of 6,000. The total costs were the following: Variable cost of sales $457,800 Fixed cost of sales 100,000 Variable selling & administrative costs 108,500 Fixed selling & administrative costs 512,400 What is the best estimate of the total contribution margin?Sunn Company manufactures a single product that sells for $210 per unit and whose variable costs are $168 per unit. The company's annual fixed costs are $575,400. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. 1 Numerator: (c) Compute the company's break-even point in units. 1 1 Numerator: Denominator: Numerator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: II Contribution Margin Ratio Contribution margin ratio Break-Even Units Break-even units 0 Break-Even Dollars Break-even dollars 4Drake Company produces a single product. Last year's income statement is as follows: Sales (19,000 units) $1,153,300 Less: Variable costs 796,100 Contribution margin $357,200 Less: Fixed costs 261,700 Operating income $95,500 Required: 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. Break-even units 8,450.1 x units Break-even dollars 8,450.1 x 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
