Contribution Margin I/S: Recast Exercise Sold (Unit) 10,000 Sales Variable expenses Contribution margin Fixed expenses Net Income 100,000 60,000 40,000 30,000 10,000 Per unit $10 $6 $4 7,500 Per unit $10 $6 $4 (8) 12,000 Per unit ratios $10 12 $6 13 $4

Contribution Margin I/S: Recast Exercise Sold (Unit) 10,000 Sales Variable expenses Contribution margin Fixed expenses Net Income 100,000 60,000 40,000 30,000 10,000 Per unit $10 $6 $4 7,500 Per unit $10 $6 $4 (8) 12,000 Per unit ratios $10 12 $6 13 $4

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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H1. Account
The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 136,000 100.00 $ 136,000 100.00 Variable costs 81,600 60.00 40,800 30.00 Contribution margin 54,400 40.00 95,200 70.00 Fixed costs 36,400 72,450 Operating income (πB) $ 18,000 $ 22,750 The annual breakeven point in sales dollars for X Company is: Multiple Choice $103,857. $91,000. $64,000. $111,769. $92,657.
Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 111,000 Net operating income $ 69,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $77,400. $82,200. $153,200. $88,500.
3-39 CVP analysis, medical sector. Yahama Medical Centre operates a medical surgery in Japan that specializes in the diagnosis and treatment of hay fever allergies. The firm's budget for next year is as follows: Number of beds available In-patient days In-patient fees 80 per day 26,000 per annum ¥1,300,000 Variable Costs Fixed Costs Total Costs Direct supplies ¥ 100,000 ¥ 100,000 Direct salaries Patient service O/H Administration Total costs 800,000 800,000 58,000 ¥102,000 160,000 108,000 ¥1,066,000 150,000 ¥252,000 258,000 ¥1,318,000 1. Calculate the contribution margin ratio. 2. Compute the breakeven point in both in-patient days and in-patient fees. 3. Compute the margin of safety ratio if the clinic operates at full capacity. 4. Suppose the direct salaries were increased to ¥826,000 and total variable costs increased to ¥1,092,000, compute the breakeven point in in-patient days if all matters not specified remain the same. 5. Suppose the fixed patient service overheads increase to…
Amount $300,000 120,000 Per Unit Sales $40 Variable expenses 16 Contribution margin 180,000 $24 Fixed expenses 41,000 Net operating income $139,000 If the variable expenses increase by $1 per unit, the advertising expenditures increase by $15,000, and unit sales increase by 5%, then the best of estimate of the Multiple Choice $137.600. $125125. $144,725, $139.375.
nkt.3
Required information Exercise 5-7 (Algo) Changes in Variable Costs, Fixed Costs, Selling Price, and Unit Sales [LO5-7] [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 100 61 $39 Exercise 5-7 (Algo) Part 1 Percent of Sales 100% 61 39% Fixed expenses are $80,000 per month and the company is selling 3,700 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,500, the monthly sales volume increases by 100 units, and the total monthly sales increase by $10,000? 1-b. Should the advertising budget be increased?
Use formula as needed. Do not hardcode. 3. Calculate the following for both divisions using appropriate formula: - Variable costs per unit - Contribution margin per unit - Break-even units Use Roundup formula in Excel to round up to full unit. The general roundup formula for break-even will be: =ROUNDUP(Total Fixed costs/Contribution margin per unit,0). - Break-even sales in dollar - Margin of safety in percentage - Operating leverage not income
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Sales revenue (1000 units) $20,000 Fixed costs $29,000 Contribution margin ration 60%, what is the variable cost per unit?
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