Brighton Co. reports the following contribution margin income statement for 2023: Sales (12,000 units at $250 each): $3,000,000 • Variable costs (12,000 units at $190 each): $2,280,000 • Contribution margin: $720,000 ⚫ Fixed costs: $500,000 • Pre-tax income: $220,000 A. Compute the contribution margin ratio. B. Determine the break-even sales in units. C. If sales increase by 1,500 units, by how much would net income increase?

Brighton Co. reports the following contribution margin income statement for 2023: Sales (12,000 units at $250 each): $3,000,000 • Variable costs (12,000 units at $190 each): $2,280,000 • Contribution margin: $720,000 ⚫ Fixed costs: $500,000 • Pre-tax income: $220,000 A. Compute the contribution margin ratio. B. Determine the break-even sales in units. C. If sales increase by 1,500 units, by how much would net income increase?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Sheridan Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet). Sales mix is determined based upon total sales dollars.
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2. Sooner Industries charges a price of $82 and has fixed cost of $325,000. Next year, Sooner expects to sell 14,800 units and make operating income of $187,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places. Line Item Description Answer Variable cost per unit $fill in the blank 2 per unit Contribution margin ratio fill in the blank 3 %
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Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,430 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $21,870 (a)What is the contribution margin ratio? Contribution margin ratio % (b)What is the break-even point in dollars? Break-even point $ (c)What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio % (d)If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $
Contribution margin is?
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Please help me figure a-e
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