General account query Cost Account - Chance, Inc. sold 3,300 units of its product at a price of$87 per unit. The total variable cost per unit is $63, consisting of $41 invariable production costs and $22 in variable selling and administrativecost.Compute the manufacturing margin for the company under variablecosting.a. $135,300b. $207,900c. $151,800d. $287,100e. ($128,700)

To compute the manufacturing margin under variable costing, we only consider sales revenue and…

Answered: Cost Account - Chance, Inc. sold 3,300…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 4MCQ

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Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Information concerning a product produced by Rundle Company appears as follows. Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs Required Determine the following: $ 171 $92 $ 505,600 a. Contribution margin per unit. b. Number of units that Rundle must sell to break even. c. Sales level in units that Rundle must reach to earn a profit of $205,400. a. Contribution margin per unit b. Break-even in units c. Required sales in units
Chance Inc. sold 2,600 units of its product at a price of $114 per unit. Total variable cost per unit is $79, consisting of $46 invariable production cost and $33 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing. A. $119,600 B. $91,000 C. $176,800 D. ($114,400) E. $296,400
Gibson Manufacturing Company makes a product that sells for $74.60 per unit. Manufacturing costs for the product amount to $25.10 per unit variable, and $65,100 fixed. During the current accounting period, Gibson made 3,100 units of the product and sold 2,600 units. Selling and administrative expenses were zero. Required a. Prepare an absorption costing income statement. b. Prepare a variable costing income statement.
I want to correct answer general accounting
Use the information below to answer the following question(s). Franscioso Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.25 Direct manufacturing labour $1.15 Manufacturing overhead $0.25 Selling costs $1.85 Annual fixed costs $110,000 The Franscioso Company contribution margin ratio is O A. 0.702:1. O B. 1.425:1. O C. 0.298:1. O D. 1.102:1. O E. 0.637:1.
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Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit ELT $. Total annual fixed manufacturing and operating $576,000 E8 costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $180,000. d. Determine the margin of safety in units, sales dollars, and as a percentage. Complete this question by entering your answers in the tabs below. Req A to C Req D Determine the margin of safety in units, sales dollars, and as a percentage. (Round "Percentage" answer to 1 decimal place (i.e., 0.234 should be entered as 23.4).) Units Sales Percentage Margin of safety < Req A to C

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