gold coast Co. had a break - even point of $500,000 in 2020, based on a selling price of $10 per unit and fixed costs of $250,000 in 2021, the break-even point increased to $800,000 but the selling price and variable costs per unit did not change. Instructions: a. Compute the contribution margin per unit for 2020. b. Compute the contribution margin ratio for 2020. c. Compute the increase in fixed costs for 2020.

gold coast Co. had a break - even point of $500,000 in 2020, based on a selling price of $10 per unit and fixed costs of $250,000 in 2021, the break-even point increased to $800,000 but the selling price and variable costs per unit did not change. Instructions: a. Compute the contribution margin per unit for 2020. b. Compute the contribution margin ratio for 2020. c. Compute the increase in fixed costs for 2020.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....

See similar textbooks

Similar questions

1. The following CVP income statements are available for ABC Company and XYZ Company. Sales Variable costs Contribution margin Fixed costs Operating income ABC Company CVP I/S for 2020 $500,000 300,000 200,000 180,000 $ 20,000 XYZ Company CVP I/S for 2020 $500,000 180,000 320,000 300,000 $ 20,000 med m (a) Compute the break-even point in dollars and the margin of safety ratio for each w ww w w w w h m w m ww m company. (b) Compute the degree of operating leverage for each company. (c) Assuming that sales revenue decreases by 20%, each a CVP income statement for w w w w ww w www w w m wm company. (d) Assuming that sales revenue increases by 20%, calculate the operating incomes of the two companies without w w w w ww med m www S WInoul preparing income statement. (Use DOL) nea ww w
In 2024, Sunland Company had a break-even point of $372,000 based on a unit selling price of $6.00 and fixed costs of $111,600. In 2025, the unit selling price and the unit variable costs did not change, but the break-even point increased to $495,000. (a) * Your answer is incorrect. Compute the unit variable costs and the contribution margin ratio for 2024. (Round unit variable cost to 2 decimal places, e.g. 2.25 and contribution margin ratio to O decimal places, e.g. 20%.) Unit variable cost Contribution margin ratio %
Please help me with show all calculation thanku
Focner
For XYZ Company , how many units of their product would have to be sold to yield a target operating income of $92,000 for the financial year ending 2021, assuming variable costs are $50 per unittotal fixed costs are \$8, , and the unit selling price is $60 ? a. 800 units b. 2,000 units c. 10,000 units d. 9,200 units
Currently the unit selling price of a product is $200, the unit variable cost is $110, and the total fixed costs are $585,000. A proposal is being evaluated to increase the unit selling price to $275. Under the proposed plan, the variable cost per unit and the total fixed cost will not change. 1) Calculate the contribution margin per unit. 2) Calculate the contribution margin ratio. 3) Calculate the breakeven point in units under the current scenario.
Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2021: Sales quantity Unit selling price Unit variable costs Fixed costs (a) 2,200 barrels $75 per barrel $45 per barrel $18,480 What is the contribution margin ratio? Contribution margin ratio %
A projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?
Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the total fixed costs are $1,008,000. A proposal is being evaluated to increase the unit selling price to $440. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units
Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,430 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $21,870 (a)What is the contribution margin ratio? Contribution margin ratio % (b)What is the break-even point in dollars? Break-even point $ (c)What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio % (d)If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $
For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $46,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total fixed costs are $4,000, and the unit selling price is $60? O a. 400 units O b. 4,600 units Ос. 1,000 units O d. 5,000 units
a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution marginincome statement for the year ended December 31, 2019, detailing the components of total fixed costsand clearly showing contribution and net income. c) Calculate Benoit’s break-even point in units and in sales dollars.