General Accounting Eastland Corp. had total variable costs of$155,306, total fixed costs of $119,500, andtotal revenues of $254,600.a. Calculate contribution margin ratio.b. Compute the required sales in dollars tobreak-even.

Step 1: Define Contribution Margin RatioThe contribution margin ratio shows the contribution margin…

Answered: Eastland Corp. had total variable costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Crane Manufacturing Ltd. has provided you with the following CVP income statement. Sales (1,460 units) Variable costs: Cost of goods sold Selling expenses Administrative expenses Contribution margin Fixed costs: Cost of goods sold Selling expenses Administrative expenses Operating income $1,022,000 454,060 81,760 67,160 419, 20 153,300 52,560 33,580 $179,580 a. Calculate the contribution margin ratio. b. Calculate the break-even point in sales dollars and number of units.
The controller of Ashton Company prepared the following projected income statement: Sales $97,000 Total variable cost 32,850 Total fixed cost 43,800 Operating income $20,440 Required: Calculate the contribution margin ratio?
Sheridan Corp. had total variable costs of $148,200, total fixed costs of $139,200, and total revenues of $285,000. (a1) Calculate contribution margin ratio. Contribution margin ratio %
What isbthe overall contribution margin ratio ?
Given the following information, find dollar sales: a. Fixed costs, $60,000; profit, $18,000; sales price per unit, $8.00; variable cost per unit, $5.00 b. Variable rate, .45; profit, $21,578.10; fixed costs, $58,382 c. Sales price per unit, $16.60; profit, $21,220; contribution margin, $9.29; fixed costs, $126,000
What is the overall contribution margin ratio?
Please help fill in the rest of the table on based on Cost-Volume-Profit relationship
Cullumber Corp. had total variable costs of $247,500, total fixed costs of $193,500, and total revenues of $450,000.Compute the required sales in dollars to break even. Required sales $enter the required sales in dollars
A company has sales of $1,000,000, variable costs of $250,000, and fixed costs of $600,000. Compute the following: 1. Contribution margin ratio. 2. Break-even sales volume. 3. Margin of safety ratio. 4. Net operating income percentage.
Exercise 10-32 (Algo) Activity-Based Costing of Customers (LO 10-3, 4) Northwestern Bank (NB) offers only checking accounts. Customers can write checks and use a network of automated teller machines. NB earns revenue by investing the money deposited; currently, it averages 4.1 percent annually on its investments of those deposits. To compete with larger banks, NB pays depositors 0.3 percent on all deposits. A recent study classified the bank's annual operating costs into four activities. Activity Using ATM Visiting branch Processing transactions Managing functions Total overhead Cost Driver Number of uses Number of visits Number of transactions Total deposits Cost $ 1,936,800 1,900,800 8,521,920 7,321,600 $ 19,681,120 Driver Volume 3,228,000 uses 396,000 visits 129,120,000 transactions $ 615,035,000 in deposits Data on two representative customers follow: Emily Jacob ATM uses 40 130 Branch visits 5 Number of transactions Average deposit 200 45 520 $ 10,000 $ 10,000
APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company's product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a per-unit basis.…
Pharoah Corp. had total variable costs of $179,400, total fixed costs of $74,400, and total revenues of $260,000.Compute the required sales dollars to break even. Required sales $ enter the required sales in dollars

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Eastland Corp. had total variable costs of $155,306, total fixed costs of $119,500, and total revenues of $254,600. a. Calculate contribution margin ratio. b. Compute the required sales in dollars to break-even.