Last month when Holiday Creations, Incorporated, sold 42,000 units, its sales, variable expenses, and fixed expenses were $168,000,$122,640, and $35,200, respectively.Required:1. What is the company's contribution margin (CM) ratio?2. What is the company's variable expense ratio?Note: Do not round intermediate calculations.1. Contribution margin ratio2. Variable expense ratio%%

Contribution Margin Ratio = (Contribution Margin / Sales) * 100Variable Expense Ratio = (Variable…

Answered: Last month when Holiday Creations,…

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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Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 20,000 T-shirts at $19 each in the coming year. Product costs include: Direct materials per T-shirt $6.65 $1.33 Direct labor per T-shirt Variable overhead per T-shirt $0.57 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $13,000.
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Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $175; Variable costs per unit includes: Direct material $60, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $45,000. What is the contribution margin percentage? O a. 56.6% O b. 61.1% O c. None of the given answers d. 50.9% Ое. 49.1%
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total variable cost 23,760 Contribution margin $64,240 Total fixed cost 43,800 Operating income $20,440 Required: 1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number. fill in the blank 1 % 2. Calculate the variable cost ratio. Note: Enter as a percent, rounded to the nearest whole number.fill in the blank 2 % 3. Calculate the break-even sales revenue for Ashton. Note: Round your answer to the nearest dollar. $fill in the blank 3 4. How could Ashton increase projected operating income without increasing the total sales revenue? Decrease the contribution margin ratio
Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 300,000 240,000 60,000 59,000 $ 1,000 If sales increase to 6,020 units, the increase in net operating income would be closest to: Multiple Choice ○ $1,000.00 ○ $200.00 ○ $800.00 ○ $3.33
In March, James Electronics had sales of $2,550,000 (25,500 units), total variable expenses of $1,275,000, and total fixed expenses of $825,000. Required: 1. What is the company's CM ratio? CM ratio % A 2. Using the CM ratio, calculate the break-even level of sales in dollars. Break-even level of sales in dollor 3. What is the break-even level of sales in units? Break-even level of sales in units units
CMR, BEP, sensitivity analysis. Wild's Company's income statement is shown below Per Unit P 5.00 3.00 P 2.00 Sales (30,000 units) Less: Variable costs Contribution margin Less: Fixed expenses Net Income Total P 150,000 90,000 60,000 50,000 P 10,000 Required: 1. Compute the contribution margin ratio, breakeven point in pesos, and operating income. 2. Calculate the new contribution margin ratio, breakeven point in pesos and operating profit under each of the changes below: a. Unit sales price increase by 15% b. Unit variable costs decrease by 25% c. Total fixed costs increase to P80,000 d. Unit sales price decreases by 20% and the sales volume increases by 20% e. The selling price increases by P 0,50 per unit, fixed costs increase by P10,000, and the sales volume decreases by 5% f. Variable costs increase by PO.20 per unit, the selling price increases by 12%, and the sales volume decreases by 10%
Use the information below to answer the following question. K-CO Company Summary Income Statement Data For the year ended December 31, 2016 S Total S per unit Sales (4,000 units) S 800,000 200.00 100% Total Variable Costs 120.00 60% Contribution Margin Total Fixed Costs 200.000 Operating Income $ 120.000 Calculate K-Co's break-even point (BE) in sales dollars. Select one: O a. $333,333 O b. $800,000 O c. $500,000 O d. $120,000
Company XYZ made total contribution margin of $300,000 and a net income of $140,000. The company also made a total gross margin of $270,000. Assume that the variable selling and administrative expenses ?($) were $80,000, how much is the fixed manufacturing cost 130,000 .a 50,000 .b None of the given answers .c O 110,000 .d O 160,000 .e
Nocum Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) Variable expenses Contribution margin Fixed expenses $ 120,000 90,000 30,000 21,000 $ 9,000 Net operating income If sales volumes decline to 2,900 units, the net operating income would be closest to:

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