Information concerning a product produced by Ender Company appears here: $4 165 Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating 94 $482,800 costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $127,800. d. Determine the margin of safety in units, sales dollars, and as a percentage. Complete this question by entering your answers in the tabs below. Req A to C Reg D Determine the margin of safety in units, sales dollars, and as a percentage. (Round "Percentage" answer to 1 decimal place (i.e., 0.234 should be entered as 23.4).) Units Sales Percentage Margin of safety < Req A to C heys

Information concerning a product produced by Ender Company appears here: $4 165 Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating 94 $482,800 costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $127,800. d. Determine the margin of safety in units, sales dollars, and as a percentage. Complete this question by entering your answers in the tabs below. Req A to C Reg D Determine the margin of safety in units, sales dollars, and as a percentage. (Round "Percentage" answer to 1 decimal place (i.e., 0.234 should be entered as 23.4).) Units Sales Percentage Margin of safety < Req A to C heys

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6PB: Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating...

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Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
A product has a sales price of $250 and a per-unit contribution margin of $75. What is the contribution margin ratio?
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: It is expected that 12,000 units will be sold at a price of 240 a unit. Maximum sales within the relevant range are 18,000 units. Instructions 1. Prepare an estimated income statement for 20Y7. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-even sales. 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to one decimal place.) 6. Determine the operating leverage.
When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit ELT $. Total annual fixed manufacturing and operating $576,000 E8 costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $180,000. d. Determine the margin of safety in units, sales dollars, and as a percentage. Complete this question by entering your answers in the tabs below. Req A to C Req D Determine the margin of safety in units, sales dollars, and as a percentage. (Round "Percentage" answer to 1 decimal place (i.e., 0.234 should be entered as 23.4).) Units Sales Percentage Margin of safety < Req A to C
Information concerning a product produced by Rundle Company appears as follows. Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs Required Determine the following: $ 171 $92 $ 505,600 a. Contribution margin per unit. b. Number of units that Rundle must sell to break even. c. Sales level in units that Rundle must reach to earn a profit of $205,400. a. Contribution margin per unit b. Break-even in units c. Required sales in units
nformation concerning a product produced by Ender Company appears here: Sales price per unit $ 159 Variable cost per unit $ 78 Total annual fixed manufacturing and operating costs $ 510,300 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $234,900. Determine the margin of safety in units, sales dollars, and as a percentage.
Information concerning a product produced by Ender Company appears here: 165 Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating 94 $482,800 costs Required Determine the following: 灣 a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $127,800. d. Determine the margin of safety in units, sales dollars, and as a percentage. 彩 Complete this question by entering your answers in the tabs below. Req A to C Req D a. Contribution margin per unit. b. Number of units that Ender must sell to break even. C. Sales level in units that Ender must reach to earn a profit of $127,800. a. Contribution margin per unit b. Break-even in units c. Sales in units Req A to C Req D > Mc Graw
Information concerning a product produced by Ender Company appears here: Sales price per unit $ 174 Variable cost per unit $ 76 Total annual fixed manufacturing and operating costs $ 656,600 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $245,000. Determine the margin of safety in units, sales dollars, and as a percentage.
Profit Functions A company has a fixed cost of $26,000 and a production cost of $5 for each unit it manufactures. A unit sells for $10. Find the following functions (in dollars). (a) What is the cost function? C(x) = (b) What is the revenue function? R(x) = (c) What is the profit function? P(x) = (d) Compute the profit (loss), in dollars, corresponding to the following production levels. P(5,500) =$ P(8,800) =$ P(12,100) =$
A company reports the following information for the single product it manufactures. Sales price Variable cost per unit Total fixed costs Target income (a) Compute contribution margin per unit. $ 230 per unit $ 161 per unit $ 986,700 per year $572,700 per year Contribution margin (b) Compute the break-even point in units. Numerator (c) Compute the unit sales to earn the target income. Numerator Denominator = Break-Even Units = = Break-even units Denominator = Units to Achieve Target = Units to achieve target