What is the total contribution margin for 1 ) Product YY for east and west2 ) West region for XX and XY.Read the question clearly before answering , last answer is wrong. EastWestSales volume (units):Product XX6,5006,800Product YY3,0005,000Sales price:Product XX$17$16Product YY$22$23Variable cost per unit:Product XX$10$10Product YY$13$13

The contribution margin is calculated by subtracting the product's price from any related variable…

Answered: East West Sales volume (units): Product…

East West Sales volume (units): Product XX 6,500 6,800 Product YY 3,000 5,000 Sales price: Product XX $17 $16 Product YY $22 $23 Variable cost per unit: Product XX $10 $10 Product YY $13 $13

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Break-even analysis can help compare locations on the basis of factors that are expressed in terms…

A: Introduction: Break-even analysis stands as a critical tool for businesses assessing the financial…

Q: f the following statements related to cost ?estimation methods is true .a None of the given answers…

A: Option d is correct The three methods determine a slope and an intercept…

Q: Fixed cost per unit ______ A

A: Under Marginal costing technique there are two types of costs . That is a) Fixed costs Fixed cost…

Q: The difference between contribution margin and income from operations is ________. a. net income b.…

A: The contribution margin is the excess revenue over the value of variable cost and the operating…

Q: Which of the following is not correct? At break-even A. Fixed costs equals contribution margin B.…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Q: The High- low method is used for? A. Profit planning B. Splitting mixed cost into fixed cost and…

A: A mixed cost contains a fixed portion of cost incurred even when the facility is idle, and a…

Q: In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple…

A: Lets understand the basics.High low method as the name suggest consider highest level of activity…

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…

A: on the cost volume profit graph, the area between the total costline and the sales line before the…

Q: Which of the following best describes an "opportunity cost"? Expected future costs that differ…

A: Introduction: Opportunity cost: Cost for the opportunity lost called opportunity cost.

Q: Q 7: prices What is meant by Transfer price and why transfer are needed?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: In Cost-Volume-Profit analysis, it is an important assumption that all units produced are sold; in…

A: Cost-Volume-Profit analysis is performed to analyze the behavior of costs and revenues and it shows…

Q: You are provided with the following information for Concord Inc. for the month ended June 30, 2020.…

A: The inventory can be valued using various methods: 1. FIFO 2. LIFO 3. Weighted average method

Q: Which of the statement is not a true reflection of Target cost gap ? The target cost gap =…

A: target costing is the way in which deriving of a target cost is done to set the production manager…

Q: How was total cost (a) found for #1?

A: Total cost for any product or service is calculating by taking sum of variable cost of the total…

Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…

A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…

Q: Q1. List the two types of fixed costs and give example. Q2. Present and explain the equation of the…

A: In accounting, the term "cost" refers to the monetary value or expenditure incurred by a business or…

Q: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…

A: Fixed cost will change and total cost will remain the same.

Q: Contribution margin is selling price plus unit cost. True or false

A: Contribution Margin is the income before deduction of any fixed cost. Contribution margin = Selling…

Q: ***

A: Marginal profit is profit on additional units units. Profit can be calculated by deductions of cost…

Q: Which of the following statements is (are) true? (A) A price standard is the price that should be…

A: Standard costing refers to the method of costing used for the computation of expenses in the process…

Q: 9. The point where the sales line and the total expense line intersects represents the A. profit…

A: Sales line: Sales line represents the sales incurred by the company over the specific period.…

Q: Select the correct statement concerning the below cost-volume-profit graph: Line E A O a. None O b.…

A: Margin of safety=Budgeted sales in dollars-Break even level in sales dollars

Q: Choose one correct answer by writing down the question number and the letter representing the answer…

A: Costs are classified as direct and indirect costs. Direct costs are a cost which is directly related…

Q: Sunland Corp. is considering purchasing one of two new diagnostic machines. Either machine would…

A: The process of assessing and choosing long-term investments that will benefit a corporation over a…

Q: Unit cost is the same as average cost of a product or service O A. True B. False

A: Unit cost is the cost of making or selling one unit. It includes direct material cost per unit,…

Q: 3. What are differential Revenues? A B C Any Revenue that increases when costs go down. D.…

A: Revenues and Expenses are important part of income statement. Under this, net income is calculated…

Q: Which of the following is NOT correct about Contribution concept? Select one: a. Contribution can…

A: 1. Contribution can be computed on total basis and per unit basis 2. contribution helps in…

Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve…

A: A graphical representation of the relationship between production costs and total sales is shown by…

Q: Each incorrect answer cancels out each correcr one. Indicate which of the following statements are…

A: 1. Indirect costs are those factors whose increase or decrease is not related to changes in the…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…

Q: Consider the following statements: (1) Total costs will equal the sum of fixed and variable costs.…

A: (1) Total costs will equal the sum of fixed and variable costs. This statement is true because fixed…

Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

What is the total contribution margin for

1 ) Product YY for east and west

2 ) West region for XX and XY.

Read the question clearly before answering , last answer is wrong.

East
West
Sales volume (units):
Product XX
6,500
6,800
Product YY
3,000
5,000
Sales price:
Product XX
$17
$16
Product YY
$22
$23
Variable cost per unit:
Product XX
$10
$10
Product YY
$13
$13

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following statements related to CVP chart is not true? O a. None of the given answers. O b. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per unit found out earlier and subtracting that from the total cost for that level of volume. Oc. The high-low method is a way to estimate the cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O d. To determine the variable cost per unit froma graph, the change in cost is divided by the change in units. O e. The slope of the total cost line determines the fixed cost per unit. Of. The intercept between the total cost line on a graph and the y axis determines the fixed cost. on Mazoon Company sells 500 units resulting in $300,000 of sales revenue, $100,000 of variable costs, and $36,000 of fixed costs. The number of units that must be sold to achieve $40,000 of operating income is: Fir F2 F3 F9 F10 F1 F4 F5 F6 F7 F8 23…
7. Which of the following is a correct formula to calculate contribution margin ratio (CM ratio)? a. Contribution margin/Sales b. Contribution margin/Variable cost c. Contribution margin/Fixed cost d. Sales/Contribution margin
What costs are assigned to a segment under the contribution approach? Distinguish between a traceable fixed cost and a common fixed cost. Explain how the contribution margin is different from the segment margin.
cc
Answer full question
TRUE/FALSE. Write T' if the statement is true and 'F' if the statement is false. 17) Target costing sets prices by computing an average cost and then adding a desired markup.
Which of the following is a correct definition of the margin of safety? The excess of contribution margin over fixed costs The excess of gross margin over target income 0 The excess of sales revenue over the breakeven point The excess of ner income over all costs (both variable and fixed
Which of the following statements is FALSE? O a. The mark up is a percentage applied to base cost. O b. A major advantage of mark up pricing is that standard mark ups are easy to apply. Oc. The mark up can be calculated using a variety of bases. O d. The mark up is an absolute rule.
Choose the correct letter of answer In using least-squares to estimate the variable and the fixed components in a mixed cost, these two formulas are very useful: ∑XY = a∑X + b∑X2 and ∑Y = an + b∑X. Which unknown value can be computed after eliminating the first variable? a.) ab.) yc.) xd.) b
Variable costing income will be greater than absorption costing income when: a. Sales is greater than production. b. contribution pricing is applied c. Production is less than or equal to sales. d. Production is greater than sales
On a graph, if a horizontal axis represents units of production and the vertical axis represents total costs, the total variable costs line would be shown as a(n): Question 4 options: horizontal line. vertical line. upward sloping line. downward sloping line.
1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: a. What is the total contribution margin? b. What is the total variable expense? c. How many units were sold? d. What is the per-unit variable expense? e. What is the per-unit contribution margin? 2. Answer the following questions about breakeven analysis: a. What is the breakeven point in units? b. What is the breakeven point in sales dollars? 3. Answer the following questions about target profit analysis and safety margin: a. How many units must the company sell in order to earn a profit of $48,000? b. What is the current margin of safety in units? c. What is the margin of safety in sales dollars? d. What is the margin of safety in percentage?