GardenRite Ltd manufactures wheelbarrows with a selling price of £100 per wheelbarrow. Budgeted production and sales volume is 2,000 wheelbarrows per month. During January 2021, 2,000 wheelbarrows were made of which 1,400 were sold. There was no opening inventory. The variable cost per wheelbarrow is £55. Fixed costs in January were, as budgeted, £50,000. Using marginal costing calculate the contribution and profit for January. O A. Contribution: £63,000, Profit £28,000 O B. Contribution: £90,000, Profit £13,000 O C. Contribution: £90,000, Profit £28,000 O D. Contribution: £63,000, Profit £13,000

GardenRite Ltd manufactures wheelbarrows with a selling price of £100 per wheelbarrow. Budgeted production and sales volume is 2,000 wheelbarrows per month. During January 2021, 2,000 wheelbarrows were made of which 1,400 were sold. There was no opening inventory. The variable cost per wheelbarrow is £55. Fixed costs in January were, as budgeted, £50,000. Using marginal costing calculate the contribution and profit for January. O A. Contribution: £63,000, Profit £28,000 O B. Contribution: £90,000, Profit £13,000 O C. Contribution: £90,000, Profit £28,000 O D. Contribution: £63,000, Profit £13,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

During the month of September, Chase's Barbershop engaged with 590 clients at an average price of $200. During the month, fixed costs were $26,536 and variable costs were 69% of sales. (Do not use commas or dollar signs in your responses.) Contribution margin in dollars $ Contribution margin per unit $ Contribution margin ratio
Miller Company produces speakers for home stereo units. The speakers are sold to retail stores for £30. Variable costs per unit are: Direct materials £9.00; Direct labour 4.50; Distribution 1.50 and Variable Factory overhead 3.00. Fixed costs per month are: Factory overhead £120,000 and Selling and admin. 60,000. The variable distribution costs are for transportation to the retail stores. The current production and sales volume is 20,000 per year. Capacity is 25,000 units per year. An Atlanta wholesaler has proposed to place a special one-time order for 7,000 units at a special price of £25.20 per unit. The wholesaler would pay all distribution costs, but there would be additional fixed selling and administrative costs of £6,000. In addition, assume that overtime production is not possible and that allother information remains the same as the original data. The effect on profits if the special order is accepted is Select one: a. cannot be determined b. £30,900 decrease c. £50,100…
Dhapa
Sanju
ABC Company sells a product for $100 per unit. Variable costs are $60 per unit, and fixed costs are $3,000 per month. The company expects to sell $600 units in September using the contribution margin format. In the income statement for September using the Contribution Margin Format, the Contribution Margin is and the Operating Income is_ O $20,000 and $22,000 O $22,000 and $19,000 O $24,000 and $21,000 O $23,000 and $20,000 O $21,000 and $18,000
Mulhi
(a) A company manufactures a single product which has variable cost of £40 per unit. The contribution to sales ratio is 45%. Monthly fixed costs are £198,000. What is the breakeven point in pounds and in units? (b) John makes and sells a product which has a variable cost of £60 and sells for £80 per unit. Budgeted fixed costs are £140,000 and budgeted sales are 16000 units. Determine the sales required to achieve this profit What is the breakeven point and margin of safety? (c) TLF Ltd wishes to sell 28,000 units of its product, which has a variable cost of £30 to make and sell. Fixed costs are £94,000 and required profit is £26,000. Calculate the sales price per unit (d) Apple Ltd makes and sells a single product, for which variable costs are follows:Direct materials $20Direct labour $16Variable production overhead $12…