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:
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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:
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- 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.
