Answered: If the unit selling price is $400, the…

If the unit selling price is $400, the unit variable cost is $250, and the total monthly fixed costs are $200,000, then the contribution margin ratio is: a. 40% b. 45% c. 50% d. 60%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1EA: Calculate the per-unit contribution margin of a product that has a sale price of $200 if the...

See similar textbooks

Related questions

Q: Please explain the solution to this general accounting problem using the correct accounting…

A: Step 1: Definition of Debt Restructuring Debt restructuring is the process by which a company…

Q: Discuss three recent tax reforms in Jamaica. What are the benefits of these tax reforms to the…

A: Three Recent Tax Reforms in Jamaica (as of 2020-2024) 1. Reduction in General Consumption Tax (GCT)…

Q: I need help finding the accurate solution to this financial accounting problem with valid methods.

A: Step 1: Definition of EquityEquity represents the residual interest in the assets of a business…

Q: general accounting

A: Step 1: Definition of Contribution MarginContribution margin is the amount remaining from sales…

Q: Provide answers

A: 1. Identify the Given Information:Annual Revenue = $1,400,000Profit = $75,000Fixed Costs = $320,000…

Q: what is the company's P/E ratio? accounting question

A: Step 1: Definition of P/E RatioThe Price-Earnings (P/E) Ratio shows how much investors are willing…

Q: Please help me solve this general accounting question using the right accounting principles.

A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) measures the profitability of a…

Q: No use ai tool

A: Step 1: Calculate current liabilities using the working capital formulaWorking capital = Current…

Q: Hi expert please given correct answer with General accounting

A: Step 1: Define Stock Dividend and Stock SplitA stock dividend is a distribution of additional shares…

Q: Get correct answer with accounting question

A: Step 1: Definition of After-Tax EarningsAfter-tax earnings represent the income a company retains…

Q: I am looking for help with this general accounting question using proper accounting standards.

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is the estimated…

Q: Osbourne Industries collected $107,474 from customers in 2015. Of the amount collected, $27,373 was…

A: Explanation of Cash-Basis Accounting: Cash-basis accounting is a method where revenue is recorded…

Q: I need assistance with this general accounting question using appropriate principles.

A: Step 1: Definition of Earnings per Share (EPS)Earnings per share (EPS) is a company's profit divided…

Q: How much gross profit was realised from this sale ?

A: Provided Data:Direct materials cost = $3.18Direct labor cost = $5.67Overhead rate = 42% of direct…

Q: what is weeks of supply?

A: To calculate Weeks of Supply, use this formula: Weeks of Supply = (Inventory ÷ Annual COGS) × 52 Now…

Q: compute the variable and fixed elements using the high low mwthod ?

A: Step 1: Definition of Mixed CostsMixed costs, also known as semi-variable costs, are costs that have…

Q: Ans

A: Step 1: Definition of Beginning Cash BalanceThe Beginning Cash Balance for a period is the amount of…

Q: Provide Answer

A: Step 1: Recall the basic accounting equation.The basic accounting equation states that:Assets =…

Q: I am looking for the correct answer to this financial accounting problem using valid accounting…

A: 1. Corporate Tax on HarborTech Inc.When a C Corporation converts to an S Corporation, the IRS wants…

Q: What is the amount of overapplied or underapplied overhead?

A: Step 1:Definition of Overapplied/Underapplied OverheadIn cost accounting, overapplied or…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: Step 1: Definition of §197 Amortization DeductionSection 197 of the Internal Revenue Code allows…

Q: Choice correct answer with accounting question

A: Step 1: Definition of Current LiabilitiesCurrent liabilities are debts or obligations that a company…

Q: I don't need ai answer general accounting question

A: To calculate the Quick Ratio, use the formula:Quick Ratio = (Current Assets - Inventory) / Current…

Q: Calculate kelvin's net earnings for the week.

A: Step 1: Definition of Net EarningsNet earnings (or take-home pay) are the amount an employee…

Q: Hi expert please given correct answer with General accounting

A: Step 1: Define Annual Inventory Carrying CostAnnual inventory carrying cost represents the total…

Q: The income Statement shows income of $ 95,000 and expenses of $50,000

A: Concept of Assets:Assets are resources owned by a business that are expected to provide future…

Q: Solve this problem

A: Explanation of Gross Profit:Gross profit is the difference between a company's revenue from sales…

Q: Answer please general accounting questions

A: Step 1: DefinitionsShareholders' EquityShareholders' equity, also known as owner's equity or…

Q: Need help this question general accounting

A: Step 1: Definition of Allowance for Doubtful AccountsThe Allowance for Doubtful Accounts is a…

Q: Please provide the accurate answer to this general accounting problem using valid techniques.

A: Step 1: Definition of Over-applied and Under-applied Overhead Over-applied overhead occurs when the…

Q: General accounting question

A: To calculate Earnings Per Share (EPS), we need to follow these steps: Step 1: Calculate Earnings…

Q: Financial Accounting

A: Step 1: Definition of Net IncomeNet income is the amount of money a company has left after all its…

Q: Please explain the solution to this general accounting problem with accurate explanations.

A: To find the Degree of Operating Leverage (DOL), we use this formula: DOL = Contribution Margin / Net…

Q: What is the correct answer with financial accounting question

A: Step 1: Definition of Working Capital, Current Ratio, Debt to Assets Ratio and Debt to Equity…

Q: Question: In 2021, Bridgestone Spa reported revenue of $45,000. Total expenses for the year were…

A: Step 1: DefinitionsConcept of Net Income:Net income is the amount a company earns after subtracting…

Q: Need help in this qn

A: Given:Standard: 4 lbs @ $3/lb = $12 per finished unitTotal Variance (Unfavorable): $18,000Actual…

Q: What is the correct answer with accounting question

A: Step 1: Definition of Net Income from Retained EarningsNet Income can be derived from changes in…

Q: provide correct option with calculation

A: Step 1: Definition of Gross ProfitGross Profit is the amount of money a company earns from its core…

Q: Owner's equity for Voltaire Enterprises is $1,250,000, and total liabilities are $500,000. The…

A: Step 1: Definition Concept of Accounting Equation:The accounting equation is the foundation of…

Q: Explain the difference between the accrual basis and cash basis of accounting. What are the…

A: Difference Between Accrual Basis and Cash Basis AccountingAccrual Basis Accounting: Accrual…

Q: General accounting

A: Step 1: Definition of Depreciation ExpenseDepreciation is the allocation of the cost of a tangible…

Q: Summit Corp. produces 145 snowmobiles per month. Direct costs are $2,720 per snowmobile. The monthly…

A: Step 1: DefinitionsConcept of Direct Costs:Direct costs are expenses that can be directly traced to…

Q: Quick answer of this accounting

A: Step 1: Definition of Predetermined Overhead Rate (Traditional Costing)The Predetermined Overhead…

Q: Financial accounting problem

A: Step 1: Definitions Concept of Quick Ratio:The quick ratio, also known as the acid-test ratio, is a…

Q: calculate the operating income using absorption costing

A: Step 1: Definition of Absorption CostingAbsorption costing is a method of accounting for all costs…

Q: Job 204 ?

A: Provided Data:Direct materials cost = $18,400Direct labor cost = $15,000Overhead rate = 120% of…

Q: correct option

A: Step 1: Definition of High-Low MethodThe High-Low Method is a technique used to separate mixed costs…

Q: how much interest expense is incurred?

A: Step 1: Definition of Interest Expense Interest expense is the cost a borrower incurs for using…

Q: general accounting

A: Step 1: Definition of Interest RateThe interest rate is the percentage of the principal amount that…

Q: Please provide the correct answer to this general accounting problem using accurate calculations.

A: Explanation: In the given case, we are required to calculate the actual profit of Lunar Technologies…

Question

100%

I am looking for the correct answer to this general accounting question with appropriate explanations.

If the unit selling price is $400, the unit variable cost is
$250, and the total monthly fixed costs are $200,000,
then the contribution margin ratio is:
a. 40%
b. 45%
c. 50%
d. 60%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65.
A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110
A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio?
Accounting question help
Assume the selling price per unit is $30, the contribution margin ratio is 40%, and thetotal fixed cost is $60,000. What is the break-even point in unit sales?a. 2,000b. 3,000c. 4,000d. 5,000
Give correct contribution margin ratio?
If sales are $30,000, fixed costs are $10,000, and variable costs are $7,000 what is the contribution margin ratio? O 0.594 O 0.767 O 0.612 0.659
10. If sales are $500,000, variable costs are 200,000, and fixed costs are 260,000, what is the contribution margin percentage? a. 52% b. 48% c. 40% d. 60%
Summersville Production Company had the following projected information for the current year: Selling price per unit $150 Variable cost per unit $90 Total fixed costs $300,000 What is the contribution margin ratio? a.0.600 b.2.500 c.0.400 d.1.667
If the sales price is $150 per unit, the variable cost is $90 per unit, and total fixed costs is $24,000, the contribution margin ratio is: Question 4 options: 80%. 60%. 40%. 20%.
Please help
What is the contribution margin?