In the month of April, Carly's Carwash provided 3,000 car washes at an average price of $25.Fixed costs are $9,300 and variable costs are 85% of sales. Compute the margin of safety ratio.2.60%17.33%20.97%15.00%eTextbook and Mediahp

Meaning of Margin of Safety:Margin of Safety is an excess of actual or budgeted sales over the break…

Answered: In the month of April, Carly's Carwash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Trillium, Inc. reports the following information for April: Alpha Beta Units sold 3,000 units 750 units Sales price per unit $250 $700 Variable manufacturing cost per unit 175 500 Sales commission per unit: Alpha: 4% of sales price 10 Beta: 6% of sales price 42 What is the contribution margin ratio of Beta? (Round your answer to two decimal places.) OA. 30% OB. 28.57% ○ C. 6% OD. 22.57%
Linda Robert sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $53,000 Cost of goods sold (all variable) 30,000 Gross margin 23,000 Selling expenses (70% variable) 8,000 Administrative expenses (20% variable) 12,000 Operating income $3,000
Following is relevant information for Philly's Sandwich Shop, a small business that serves sandwiches: Total fixed cost per month Variable cost per sandwich $1,020.00 1.50 Sales price per sandwich 5.75 During the month of June, Philly's sold 580 sandwiches. Required: Complete the contribution margin income statement for the month of June. Note: Round your final answers to the nearest whole dollar. Philly's Sandwich Shop Contribution Margin Income Statement Month of June Contribution margin Net Operating income
Green and White Company reported the following monthly data: 3,600 units $ 27 per unit $ 2 per unit $ 3 per unit $ 3.50 per unit $ 14,400 in total $0.50 per unit Units produced Sales price Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses What is Green and White's contribution margin for this month if 1,140 units were sold? Multiple Choice O $64,800 O $20,520 $30,780 $97,200 $3,600 in total $25,080
s
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $13.51 Variable cost per cake Ingredients 2.24 Direct labor 1.05 Overhead (box, etc.) 0.21 Fixed cost per month $3,203.20 Required: 1. Determine Cove’s break-even point in units and sales dollars. 2. Determine the bakery’s margin of safety if it currently sells 410 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,500 in profit.
Old Jeans, Incorporated, has two divisions or profit centers, one makes regular fit jeans and the other makes relaxed fit jeans. The information for the two centers for the month of May follows: Regular fit Relaxed fit Sales $ 400,000 $ 175,000 Variable cost (as a % of Sales) 40% 50% Traceable fixed costs $ 40,000 $ 70,000 There are also common fixed costs of $27,500. Required: Prepare a responsibility income statement by profit center and in total.
1A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850 and has per-unit variable costs of $400 associated with its production. The company has fixed expenses of $90,000 per month. In August, the company sold 425 of the Model 101 motors. Calculate the contribution margin per unit for the Model 101. Calculate the contribution margin ratio of the Model 101. Prepare a contribution margin income statement for the month of August
Margin of Safety Heads-Up Company sold 6,600 scooter helmets at $80.00 each this fiscal year. Unit variable costs were $50.00 (includes direct material, direct labor, variable manufacturing overhead, and variable selling expense). Total fixed costs equaled $82,500 (includes fixed manufacturing overhead and fixed selling and administrative expense). Operating income for the year was $115,500. Calculate the margin of safety in units. Select one: a. 3,850 b. 1,375 c. 6,600 d. 4,400 e. 2,750
7
Pathways Careers, Inc. has two products-Resume Reader and Cover Letter Cure. Financial data for both the products follow: Resume Cover Letter Reader Cure 2,600 units 1,300 units Units sold Sales price per unit Variable manufacturing cost per unit Sales commission (% of sales) $600 320 6% $1,000 650 4% Pathways has two sales representatives-Curtis Muller and Willow Brown. Each sales representative sold a total of 1,950 units during the month of March. Curtis had a sales mix of 60% Resume Reader and 40% Cover Letter Cure. Willow had a sales mix of 80% Resume Reader and 20% Cover Letter Cure. Based on the above information, calculate Willow's total contribution to company profits. OA. $380,640 O B. $120,900 OC. $501,540 OD. $573,300

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In the month of April, Carly's Carwash provided 3,000 car washes at an average price of $25. Fixed costs are $9,300 and variable costs are 85% of sales. Compute the margin of safety ratio. 2.60% 17.33% 20.97% 15.00% eTextbook and Media hp