costs and the total contribution margin for the company. E21-23 Using variable costing, service company Herman's Helpers provides locksmith services. One type of service call is to evalu- ate private residences for security concerns and make recommendations for a safety plan. Use the data below to determine the company's total contribution margin, contribution margin per service call, and contribution margin ratio when 50 service calls are made in the month of June. Service Revenue $ 100 per service call Variable Costs 35 per service call Fixed Costs 2,000 per month

costs and the total contribution margin for the company. E21-23 Using variable costing, service company Herman's Helpers provides locksmith services. One type of service call is to evalu- ate private residences for security concerns and make recommendations for a safety plan. Use the data below to determine the company's total contribution margin, contribution margin per service call, and contribution margin ratio when 50 service calls are made in the month of June. Service Revenue $ 100 per service call Variable Costs 35 per service call Fixed Costs 2,000 per month

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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Compute for the total cost per month using costing labor cost by the given data Compute for the percentage weight of the monetary benefit, non monetary benefit, and deferred monetary benefit Compute for the percentage of cost relevant to the sales of total labor cost, given that there are 40 employees in the company and the revenue of the company is 2,500,000 monthly.
Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.25/unit) Gross profit Operating expenses: Selling ($1,200 + $0.10/unit) Administrative ($3,500 + $0.20/unit) Operating income $34,400 22,775 $ 11,625 1,950 5,000 $ 4,675 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to 1. 11,250 units. 2. 3,750 units. d. Refer to your answer to part a for total revenues of $34,400. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase by $14,500. 2. Decrease by $3,000.
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