Exercise 18-8 (Algo) Computing missing amounts in contribution margin income statements LO A1 Compute the missing amounts in the contribution income statement shown below: (Round "Per Unit" answers to 2 decimal places.) Company A Company B Number of units sold 2,275 Total Per unit Total Per unit Sales $ 391,600 $ 89.00 Variable costs 259,600 100,100 es Contribution margin 131,950 Fixed costs 50,050 Income $ 90,200

Exercise 18-8 (Algo) Computing missing amounts in contribution margin income statements LO A1 Compute the missing amounts in the contribution income statement shown below: (Round "Per Unit" answers to 2 decimal places.) Company A Company B Number of units sold 2,275 Total Per unit Total Per unit Sales $ 391,600 $ 89.00 Variable costs 259,600 100,100 es Contribution margin 131,950 Fixed costs 50,050 Income $ 90,200

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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QS 19-15 (Algo) Computing contribution margin LO P2 D'Souza Company sold 6,000 units of its product for $88 per unit. Each unit had $51.60 in varlable cost of goods sold and $10.80 in variable selling and administrative expenses. Compute contribution margin. D'SOUZA COMPANY Contribution Margin Sales Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Units $ per unit Total
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Exercise 19-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 Skip to question [The following information applies to the questions displayed below.]Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $120 per unit. Direct materials $ 48 per unit Direct labor $ 18 per unit Variable overhead $ 6 per unit Fixed overhead $ 420,000 per year Variable selling and administrative expenses $ 12 per unit Fixed selling and administrative expenses $ 110,000 per year Exercise 19-3 (Algo) 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. 2a. Assume the company uses variable costing. Determine its total product cost per unit. 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
%24 Kesterson Corporation has provided the following information: Cost Cost per Period per Unit $7.20 $4.30 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense 09 $2.20 $0.50 If 7,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to: Multiple Cholce $12,000 O $36.750 re to search F4 F5 F7 F8 F10 てい1 Coca %23 V
Contribution margin per constraint Zion Metals Inc. has three grades of metal product, A1, B3, and E6. Financial data for the three grades are as follows: A1 B3 E6 Revenue $ 400,000 $ 578,000 $ 300,000 Variable cost $(250,000) $(380,000) $(270,000) Fixed cost (105,000) (118,800) (20,000) Total cost $(355,000) $(498,800) $(290,000) Operating income $ 45,000 $ 79,200 $ 10,000 Number of units ÷ 15,000 ÷ 16,500 ÷ 5,000 Operating income per unit $ 3.00 $ 4.80 $ 2.00 Zion Metals’ operations require all three grades to be melted in a furnace before being formed. The furnace runs 24 hours a day, 7 days a week, and is a production constraint. The furnace hours required per unit of each product are as follows: A1: 8 hours B3: 10 hours E6: 6 hours The Marketing Department is considering a new marketing and sales campaign. Which product should be emphasized in the marketing and sales…
1- Chapter 1 Assignment i 1 of 15 € a 19 2 Total manufacturing overhead cost Manufacturing overhead per unit 4# Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Okay 3 4 Y A Saved 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) & LO 5 * Help 6 Save & Exit 7 Average Cost per Unit $7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 You Check my work 8 Submit 9 } 11 0 d
Hh1. Account
t 0 ences Mc Graw Hill Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Break even point $ 25 $ 20 The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing…
EXERCISE 1-11 Cost Behavior; Contribution Format Income Statement L01-4, L01-6 Harris Company manufactures and sells a single product. A partially completed schedule of the com- pany's total costs and costs per unit over the relevant range of 30,000 to 50,000 units is given below: Vist Jumsch Total costs: Variable cost. Fixed cost Total cost. Costs per unit: Variable cost. Fixed cost Total cost per unit. Units Produced and Sold 40,000 30,000 $180,000 300,000 $480,000 ? ? ? ? ? ? ? ? ? 50,000 ? ? ? ? ? ? Required: 1. Complete the above schedule of the company's total costs and costs per unit. 2. Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribution format income statement for the year. 6 107
Exercise 11-15A (Algo) Using contribution margin format income statement to measure the magnitude of operating leverage LO 11-3, 11-4 The following income statement was drawn from the records of Benson, a merchandising firm: BENSON COMPANY Income Statement For the Year Ended December 31 Sales revenue (4,500 units × $163) $ 733,500 Cost of goods sold (4,500 units × $82) (369,000 ) Gross margin 364,500 Sales commissions (5% of sales) (36,675 ) Administrative salaries expense (85,000 ) Advertising expense (34,000 ) Depreciation expense (48,000 ) Shipping and handling expenses (4,500 units × $3) (13,500 ) Net income $ 147,325 Required Reconstruct the income statement using the contribution margin format. Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Benson will earn if sales increase by 20 percent.
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