Subject: accounting In September, Blossom Industries sold 800 units of product. The average sales price was $35. During the month, fixed costs were$6,405 and variable costs were 75% of sales.(a)Determine the contribution margin in dollars, per unit, and as a ratio. (Round Contribution margin to 0 decimal places, e.g.5,275. Other all answers to 2 decimal places. e.g. 52.75.)Contribution margin (in dollars)Unit contribution marginContribution margin ratioSave for Later$$Attempts: 0 of 1 used Submit Answer

The contribution margin is calculated as the difference between sales and variable costs. The…

Answered: In September, Blossom Industries sold…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

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Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
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
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
In September, Crane Industries sold 800 units of product. The average sales price was $40. During the month, fixed costs were $6,504 and variable costs were 70% of sales. (a) Determine the contribution margin in dollars, per unit, and as a ratio. (Round Contribution margin to 0 decimal places, e.g. 5,275. Other all answers to 2 decimal places, e.g. 52.75.) Contribution margin (in dollars) $ Unit contribution margin Contribution margin ratio $
In the month of September, Matiock Industries sold 800 units of product. The average sales price was $30. During the month, fixed costs were $6,300 and variable costs were 70% of sales. Instructions (a) Determine the contribution margin in dollars, per unit, and as a ratio. (b) Using the contribution margir technique, compute the break-even point in dollars and in units.
In the month of March, Pharoah Salon services 630 clients at an average price of $100. During the month, fixed costs were $14,880 and variable costs were 68% of sales. (A) Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio. Contribution margin in dollars $ Contribution margin per unit $ Contribution margin ratio % (B) Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales $ Break-even sales units
Rovinsky Corp, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (5,700 units) $319,200 Variable Expenses 188,100 Contribution Margin 131,100 Fixed Expenses 106,500 Net Operating Income 24,600 Calculate the breakeven point in: a. sales units (round to the nearest whole unit) b. and sales dollars
In the last reporting period, Helena's Heavenly Fixture Company recorded 80,000 units sold for the first time in the history of the company. The price per unit was $91.81 and variable costs per unit at $38.15. Compute the contribution margin. Next, compute the fixed costs if the operating income is $4,110,000 O A. $3,052,000; $2,641,000 O B. $3,052,000; $3,463,000 O C. $4,292,800; $182,800 O D. $7,344,800; $6,933,800
In the last reporting period, Global Tech Company recorded 140,000 units sold for the first time in the history of the company. The price per unit was $85.63 and variable costs per unit at $35.07. Compute the contribution margin. Next, compute the fixed costs if the operating income is $3,810,000. OA. $4,909,800; $4,528,800 OB. $7,078,400; $3,268,400 OC. $4,909,800; $5,290,800 OD. $11,988,200; $11,607,200
Rovinsky Corp, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (5,700 units) $319,200 Variable Expenses 188,100 Contribution Margin 131,100 Fixed Expenses 106,500 Net Operating Income 24,600 Calculate the contribution margin ratio for the company. Round to one decimal place.

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