Please help me this question solution Lindo Company incurs annual fixed costs of $80,000.Variable costs for Undo's product are $40 per unit, and thesales price is $64 per unit. Lindo desires to earn an annualprofit of $40,000.Use the contribution margin ratio approach to determine thesales volume in dollars and units required to earn the desiredprofit.

Step 1: Definition of Contribution Margin RatioThe contribution margin ratio is the percentage of…

Answered: Lindo Company incurs annual fixed costs…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

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Chapter3: Cost-volume-profit Analysis

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Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.
Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 15%. Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged.
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $ 480,000, and fixed selling and administrative costs are $240, 000 per year. Required: Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Confirm your results by preparing a contribution margin income statement in excel for the break - even sales volume.
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Prepare a contribution margin income statement for the break-even sales volume. Complete this question by entering your answers in the tabs below.
Blanchard Company manufactures a single product that sells for $136 per unit and whose total variable costs are $102 per unit. The company's annual fixed costs are $496,400. Management targets an annual pretax income of $850,000. Assume that fixed costs remain at $496,400. (1) Compute the unit sales to earn the target income. Choose Numerator: Fixed costs plus pretax income Choose Denominator: = Units to Achieve Target Contribution margin per unit = Units to achieve target 0 (2) Compute the dollar sales to earn the target income. Choose Numerator: Fixed costs plus pretax income Choose Denominator: Dollars to Achieve Target 1 Contribution margin ratio = Dollars to achieve target 0
Munoz Corporation sells products for $28 each that have variable costs of $15 per unit. Munoz’s annual fixed cost is $296,400. Use the per-unit contribution margin approach to determine the break-even point in units and dollars.
The “ABM” Company sells pencil cases for $15 each. Manufacturing cost is $4.60 per pencil case; marketing costs are $1.40 per pencil case; and royalty payments are 20% of the selling price. The fixed cost of preparing the pencil cases is $18 000. Capacity is 15 000 pencil cases. Compute the unit contribution margin and contribution rate. Compute the break-even point in units Determine the break-even point in units if fixed costs are increased by 20%. 4. Determine the break-even point in units if the selling price is increased by 30%, while fixed costs are increased by 20%.
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $842,400. Management targets an annual pretax income of $1,350,000. Assume that fixed costs remain at $842,400. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator: Units to Achieve Target Units to achieve target %3D (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: Dollars to Achieve Target Dollars to achieve target %3D
Toussaint Company sells 20,000 units at $120 per unit. Variable costs are $90 per unit, and fixed costs are $250,000. C. Prepare an income statement for Toussaint in contribution margin format. Determine Toussaint's (1) contribution margin ratio and (2) unit contribution margin. How much would operating income change if Toussaint's sales increased by 3,000 units?
Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's annual fixed costs are $308,000. Management targets an annual income of $550,000. (1) Compute the unit sales to earn the target income. Numerator: Denominator: (2) Compute the dollar sales to earn the target income. Numerator: Denominator: = = = = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target
Summer Company sells a product with a contribution margin ratio of 54%. Fixed costs per month are $630. What amount of sales (in dollars) must Summer Company have to earn an operating of $6,400? If each unit sells for $25.00, how many units must be sold to achieve the desired operating income?(Round your answers to two decimal places when needed and use rounded answers for all future calculations and write unit answers in whole units when needed.)
Zachary Corporation sells hammocks; variable costs are $70 each, and the hammocks are sold for $132 each. Zachary incurs $294,000 of fixed operating expenses annually. Required Determine the sales volume in units and dollars required to attain a $78,000 profit. Prepare an income statement using the contribution margin format.Zachary is considering implementing a quality improvement program. The program will require a $8 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $51, 600 for advertising. Assuming that the improvement program will increase sales to a level that is 5,700 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format.Determine the new break- even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. C Required A1 Required A2 Required B…

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