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Accounting
Crane's Bike Shop has the following income statement. Sales ($150 per unit) Less: Cost of Goods sold ($96 per unit) Gross margin Less: Operating costs Salaries Advertising Shipping ($6 per unit) Operating income $24.960 Contribution margin per unit $ 12,480 6,240 $156,000 99,840 56,160 43,680 $12,480 Calculate the contribution margin per unit. (Round answers to O decimal places, e.g. 25.)

Crane's Bike Shop has the following income statement. Sales ($150 per unit) Less: Cost of Goods sold ($96 per unit) Gross margin Less: Operating costs Salaries Advertising Shipping ($6 per unit) Operating income $24.960 Contribution margin per unit $ 12,480 6,240 $156,000 99,840 56,160 43,680 $12,480 Calculate the contribution margin per unit. (Round answers to O decimal places, e.g. 25.)

FINANCIAL ACCOUNTING
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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Crane's Bike Shop has the following income statement. Sales ($150 per unit) Less: Cost of Goods sold ($96 per unit) Gross margin Less: Operating costs Salaries Advertising Shipping ($6 per unit) Operating income Contribution margin per unit $ $24.960 12,480 6,240 eTextbook and Media $156,000 99,840 56,160 43,680 Calculate the contribution margin per unit. (Round answers to O decimal places, e.g. 25.) $12,480
Transcribed Image Text:Crane's Bike Shop has the following income statement. Sales ($150 per unit) Less: Cost of Goods sold ($96 per unit) Gross margin Less: Operating costs Salaries Advertising Shipping ($6 per unit) Operating income Contribution margin per unit $ $24.960 12,480 6,240 eTextbook and Media $156,000 99,840 56,160 43,680 Calculate the contribution margin per unit. (Round answers to O decimal places, e.g. 25.) $12,480
Calculate the contribution margin ratio. (Round answers to 0 decimal places, e.g. 25.) Contribution margin ratio eTextbook and Media Calculate the breakeven point in units and in sales dollars. (Use your answer of breakeven units to calculate the E dollars. Round Breakeven units and point in dollar to O decimal places, e.g. 25,000.) Breakeven point in units Breakeven point in sales dollars Margin of safety in units % $ Margin of safety in dollars Calculate the margin of safety in units and in dollars. (Use your answer of margin of safety in units to calculate the marg dollars. Round Margin of safety units and point in dollar to 0 decimal places, e.g. 25,000.) units units
Transcribed Image Text:Calculate the contribution margin ratio. (Round answers to 0 decimal places, e.g. 25.) Contribution margin ratio eTextbook and Media Calculate the breakeven point in units and in sales dollars. (Use your answer of breakeven units to calculate the E dollars. Round Breakeven units and point in dollar to O decimal places, e.g. 25,000.) Breakeven point in units Breakeven point in sales dollars Margin of safety in units % $ Margin of safety in dollars Calculate the margin of safety in units and in dollars. (Use your answer of margin of safety in units to calculate the marg dollars. Round Margin of safety units and point in dollar to 0 decimal places, e.g. 25,000.) units units
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