Last month when Holiday shane, Inc., sold 42,000 units, total sales were $400,000,total variable expenses were $244,000, and fixed expenses were $39,700.20 questions left-Renews MRequired:Enter question1. What is the company's contribution margin (CM) ratio?

The contribution margin ratio of an organisation is computed by dividing total revenue by variable…

Answered: Last month when Holiday shane, Inc.,…

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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Last month when Holiday Creations, Incorporated, sold 43,000 units, total sales were $172,000, total variable expenses were $137,600, and fixed expenses were $36,300. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 325 units and total sales by $1,300? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %
Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total variable expenses were $147,840, and fixed expenses were $39,300. Required: 1. What is the company’s contribution margin (CM) ratio? 2. What is the estimated change in the company’s net operating income if it can increase sales volume by 375 units and total sales by $1,500? (Do not round intermediate calculations.)
Last month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses, and fixed expenses were $164,000, $136,120, and $38,600, 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 ratio 2. Variable expense ratio 17 % %
Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,425,000.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $57,600 38,400 $ 19, 200 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Sales Variable expenses Contribution margin Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Engberg Company Contribution Income…
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 112,000 34,600 $77,400 Makeover $ 56,000 7,400 $ 48,600 Total $ 168,000 42,000 126,000 86,400 $ 39,600 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 11 Required 21 Required 3 Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations, Round your…
1. Shown below is an income statement in the traditional format for Ellie Inc, which has a contribution margin ratio of 25%. Sales ...... Cost of goods sold... Gross profit...... Operating expenses: Selling... Administrative.... Operating income $100,000 (70,000) $ 30,000 (5,000) (10,000) $ 15,000 Prepare an income statement in the contribution margin format. b. Calculate the sales per unit, variable expense per unit, and contribution margin per unit if 10,000 units were produced and sold. c. Calculate the cost formula (Y=a+bX). d. Calculate the firm's break even point in units.
A company reports the following contribution margin income statement. Contribution Margin Income Statement For Year Ended December 31 Sales (19,200 units at $22.50 each) Variable costs (19,200 units at $18.00 each) Contribution margin. Fixed costs Income The manager believes the company can increase sales volume to 22,000 total units by increasing advertising costs by $16,200. Required A Required B Complete this question by entering your answers in the tabs below. Contribution Margin Income Statement For Year Ended December 31 $ 432,000 345,600 Prepare a contribution margin income statement assuming the company incurs the additional advertising costs and sales volume increases to 22,000 units. Sales Variable costs Contribution margin 86,400 64,800 $ 21,600 Fixed costs Income
2. Assume that the company expects sales of each product to decline to 41,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). Note: Round "per unit" answers to 2 decimal places. Contribution margin Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total
The following monthly data are available for the Phelps Company: Product A Product B $150,000 $130,000 Variable expenses $91,000 $104,000 Contribution margin $59,000 $26,000 Fixed expenses Operating income The break-even sales for the month for the company are: Sales Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $203,000 Product C $90,000 $27,000 $63,000 foonnnn. Total $370,000 $222,000 $148,000 $55,000

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Last month when Holiday shane, Inc., sold 42,000 units, total sales were $400,000, total variable expenses were $244,000, and fixed expenses were $39,700. 20 questions left-Renews M Required: Enter question 1. What is the company's contribution margin (CM) ratio?