Current operating income for Bay Area Cycles Company is $46,000. Selling price per unit is $100, the contribution margin ratio is 25%,and fixed expense is $184,000.Required:1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold?2. How many additional unit sales would be necessary to achieve operating income of $115,000?Complete this question by entering your answers in the tabs below.esRequired 1 Required 2Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold?RevenueVariable expenseContribution marginFixed expenseOperating incomePer UnitVolume$100.00TotalRatio100 %+%25 %(184,000)46,000

Step 1: Calculation of Contribution margin, revenue and variable expense total and…

Answered: Current operating income for Bay Area…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter2: Building Blocks Of Managerial Accounting

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Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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Current operating income for Bay Area Cycles Company is $26,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $104,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $65,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Fixed expense Operating income $ Per Unit 100.00 Volume
gnment i ces Saved Current operating income for Bay Area Cycles Company is $22,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $88,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $65,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Fixed expense Operating income Per Unit Volume $ 100.00 Total Ratio 100 % % 25 % $ (88,000) 22,000 Required 1 Required 2 > H
following are the cost data associated with water purification devices. a.The initial cost of one device 20,000 b. The cost of transporting one device = %3D 4% of the initial cost of the device. c. The cost of installing the device and connecting it to the water 8% of the cost of the device. d. Profit margin ratio 20% of the total cost of a single device. e. Requited: Calculate the sales price of the device including transportation, installation and connection to water, using cost-based pricing.
A company would like to determine various costs and points to aid them in deciding whether to expand or not. If you are given the following information, compute the required amounts and / or figures.Selling price / unit = P100 Variable cost / unit = P70Annual fixed cost = P500,000 Compute 5. Sales in units to earn a profit of 10% of sales.
Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 160,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Best installs 4,000 windows. Use (a) the Equation method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) X X )-( )-( X X 700 600 X = Operating income = Next, use (b) the contribution method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. = Operating income
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Summer Company sells a product with a contribution margin ratio of 54%. Fixed costs per month are $630. What amount of sales (in dollars) must Summer Company have to earn an operating of $6,400? If each unit sells for $25.00, how many units must be sold to achieve the desired operating income?(Round your answers to two decimal places when needed and use rounded answers for all future calculations and write unit answers in whole units when needed.)
Peppy Quadcopters plans to sell a standard quadcopter (toy drone) for $70 and a deluxe quadcopter for $90. Peppy purchases the standard quadcopter for $60 and the deluxe quadcopter for $65. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $16,000. How many of each type of quadcopter must Peppy sell monthly to breakeven? To earn $12,000?
Sheridan Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet). Sales mix is determined based upon total sales dollars.
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