Loega Plc Ltd. sells rocks in Utah. They have supplied the following data:• Units sold: 3,296• Sales revenue: $4,511,592• Variable manufacturing expense: $2,164,549• Fixed manufacturing expense: $1,205,943• Variable selling and administrative expense: $435,645• Fixed selling and administrative expense: $300,051⚫ Net operating income: $405,404Loega's contribution margin ratio is closest to:Select one:O A. 42.4%O B. 9.0%OC. 25.3%O D. 83.7%O E. 66.6%13

Step 1: Calculation of contribution margin ratio.Total variable costs = Variable manufacturing…

Answered: Loega Plc Ltd. sells rocks in Utah.…

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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Shown below is a segmented income statement for Hickory Company’s Kitchen Setproduct lines:Teflon Spatula Roaster TotalSales Revenue $ 400,000 $ 200,000 $ 300,000 $ 900,000Less: Variable Expenses 225,000 120,000 250,000 595,000Contribution Margin $ 175,000 $ 80,000 $ 50,000 $ 305,000Less Direct Fixed Expenses:Machine Rent (5,000) (20,000) (50,000) (75,000)Supervision (15,000) (10,000) (20,000) (45,000)Depreciation (35,000) (10,000) (25,000) (70,000)Segment Margin $ 120,000 $ 40,000 $ (45,000) $ 115,000Refer to the information for Hickory Company above. Hickory’s management is deciding whether to keepor drop the Roaster product line. Hickory’s parquet flooring product line has a contribution margin of$50,000 (sales of $300,000 less total variable costs of $250,000). All variable costs are relevant. Relevantfixed costs associated with this line include 80% of Roaster’s machine rent and all of Roaster’ssupervision salaries.Required:1. Would you recommend the company to drop the Roaster…
Bilbo Limited incurs the following costs and revenues in manufacturing and selling 8,000 units of its product X: Direct materials. E12 000 Direct labour. £16 000 E1000 Depreciation of machinery.. Sales. 856 000 What is the contribution per unt of product? a. £7.00 b.E0.80 c. £2.50 d.£3.50
A manufacturing company decides which of three mutually exclusive products to make in its factory on the basis of maximising the company's throughput accounting ratio. Current data for the three products is shown in the following table: Product X Product Y Product Z $20 Selling price per unit $60 $40 Direct material cost per unit $40 $10 $16 Machine hours per unit 10 20 2.5 Total factory costs (excluding direct materials) are $150,000. The company cannot make enough of any of the products to satisfy external demand entirely as machine hours are restricted. Which of the following actions would improve the company's existing throughput accounting ratio? Increase the selling price of product Z by 10% Increase the selling price of product Y by 10% Reduce the material cost of product Z by 5% O Reduce the material cost of product Y by 5%
Jenna Corporation sells a single product. Management has provided the following data for two levels of monthly sales volume. The company sells the product for $172.50 per unit. Sales Volume in Units 4,000 5,000 Cost of Sales (COS) $307,600 $384,500 Selling, General & Administrative Costs (SG&A) $321,200 $337,000 Selling Price Per Unit $173 Total costs for these cost categories and may include both Fixed and Variable costs. HINT: See high-low analysis. 1. Calculate the total contribution margin when 4,300 units are sold. 2. What is the breakeven point in Sales dollars if Advertising (a fixed SG&A cost) is increased by $40,000? Please show calculations.
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Ple'egrea Pte Ltd. sells books in Madagascar. They have supplied the following data: • Units sold: 3,291 • Sales revenue: $4,710,350 • Variable manufacturing expense: $2,107,995 • Fixed manufacturing expense: $1,207,163 . Variable selling and administrative expense: $437,696 Fixed selling and administrative expense: $334,084 • Net operating income: $623,412 Ple'egrea's contribution margin ratio is closest to: ● Select one: O A. 29.6% OB. 13.2% O C. 83.6% O D. 46.0% OE. 67.3%
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