Contribution MarginMolly Company sells 40,000 units at $16 per unit. Variable costs are $9.92 per unit, and fixed costs are $119,200.Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.a. Contribution margin ratio (Enter as a whole number.)%b. Unit contribution margin (Round to the nearest cent.)per unitc. Income from operations

Answered: Contribution Margin Molly Company sells…

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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Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses $ 15,000 9,000 6,000 3,120 $ 2,880 Net operating income 2. What is the contribution margin ratio? Contribution margin ratio
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Hobbs Company produces one product for which following is information is available. Product A S per unit Selling price 6.00 Direct Material 2.50 Direct Labor 1.40 Variable overhead 1.10 $ 120,000 per annum Total Fixed cost Sales units 200,000 per annum |Required: a) Calculate contribution margin per unit. b) Calculate break even point in units. c) Calculate break even point in sales value d) Calculate profit for the year based on total contribution. e) Calculate Margin of safety in units and percentage of sales.
XYZ Company's product has a contribution margin per unit of $11.25 and a variable cost ratio of 60%. What is the selling price of the product? Select one: a. $28.125. b. $22.5. c. $37.5. d. $40. e. $50.
Contribution Margin Ratio a. Young Company budgets sales of $1,240,000, fixed costs of $41,900, and variable costs of $186,000. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 62%, sales were $567,000, and fixed costs were $274,200, what was the operating income?
Brand Company provides the following information about its single product. Targeted operating income $35,000 Selling price per unit $7.85 Variable cost per unit $6.10 Total fixed cost $96,250 What is the contribution margin per unit at the Brand Company? A) $6.10 B) $1.75 C) $0.22 D) $13.95
Dalian Company provides the following information: Price per uit Variable cost per uniti Fixed cost per month How much is the contribution margin ratio? Select one: OA 12% O B. 40% 609 O OD. 6% ested Solutions Unit Fight
Contribution Margin Ratio a. Young Company budgets sales of $1,150,000, fixed costs of $80,200, and variable costs of $356,500. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 62%, sales were $517,000, and fixed costs were $240,410, what was the operating income?
United Merchants Company sells 17,000 units at $10 per unit. Variable costs are $6.40 per unit, and fixed costs are $31,200. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Income from operations $fill in the blank 3
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units the relevant range of production is 500 units to 1,500 units) Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 32,100 12,700 9,400 7,708 Required: a. What is the margin of safety in dollars? (Do not round intermediate calculations.) b. What is the margin of safety percentage? Margin of safety
Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $90 per unit. The company's annual fixed costs are $432.000 Management targets an annual income of $750,000. (1) Compute the unit sales to earn the target income. Numerator: 1 Denominator: (2) Compute the dollar sales to earn the target income.. Numerator: Denominator P M = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target
Lamp Company has the following cost-volume-profit (CVP) data: Breakeven point, in units 3,000 Selling price per unit $ 600 Total fixed costs $ 124,000 What is the variable cost per unit (rounded to two decimal places)?

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