Gambarini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $219.90 per unit. Sales volume (units) Cost of sales 4,700 6,410 $390,100 $532,030 Selling and administrative costs $617,000 $663,170 The best estimate of the total monthly fixed cost is: a. $1,195,200 b. $1,053,060 c. $490,100 d. $1,007,100

Gambarini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $219.90 per unit. Sales volume (units) Cost of sales 4,700 6,410 $390,100 $532,030 Selling and administrative costs $617,000 $663,170 The best estimate of the total monthly fixed cost is: a. $1,195,200 b. $1,053,060 c. $490,100 d. $1,007,100

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

See similar textbooks

Similar questions

Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
Boss Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $197.80 per unit. Sales Volume (units) Cost of sales Selling and administrative costs 6000 7000 $ 4,86,600 $ 5,67,700 $ 6,12,600 $6,24,400 The best estimate of the total monthly fixed cost is: A. $541,800. B. $1,192,100. C. $1,099,200. D. $1,145,650.
Posted in General account
Please given correct answer
Please solve this question
lacob Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $153.00 per unit. Sales volume (units) Cost of sales Selling and administrative costs The best estimate of the total contribution margin when 13,360 units are sold is: Multiple Choice O O $755,310 $641,280 $338,770 $430,850 12,400 $ 954,800 $ 688,000 13,590 $ 1,046,430 $ 721,320
Jenna Corporation sells a single product. Management has provided the following data for two levels of monthly sales volume. The company sells the product for $172.50 per unit. Sales Volume in Units 4,000 5,000 Cost of Sales (COS) $307,600 $384,500 Selling, General & Administrative Costs (SG&A) $321,200 $337,000 Selling Price Per Unit $173 Total costs for these cost categories and may include both Fixed and Variable costs. HINT: See high-low analysis. 1. Calculate the total contribution margin when 4,300 units are sold. 2. What is the breakeven point in Sales dollars if Advertising (a fixed SG&A cost) is increased by $40,000? Please show calculations.
Bacob Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $103.40 per unit. Sales volume (units) Cost of sales Selling and administrative costs O $213,590 The best estimate of the total contribution margin when 5,300 units are sold is: O $41,340 O $133,560 5,000 $315,500 $ 162,500 $56,710 6,000 $378,600 $177,600
The best estimate of the total variable cost per unit is