Molly Company sells 19,000 units at $49 per unit. Costs that vary in total dollar amount as the level of activity changes.Variable costs are $35.77 per unit, and Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed costs are $100,500. Determine (a) the The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.contribution margin ratio, (b) the The dollars available from each unit of sales to cover fixed costs and provide operating profits.unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations $
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Molly Company sells 19,000 units at $49 per unit. Costs that vary in total dollar amount as the level of activity changes.Variable costs are $35.77 per unit, and Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed costs are $100,500.
Determine (a) the The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.contribution margin ratio, (b) the The dollars available from each unit of sales to cover fixed costs and provide operating profits.unit contribution margin, and (c) income from operations.
| a. Contribution margin ratio (Enter as a whole number.) |
|
% |
| b. Unit contribution margin (Round to the nearest cent.) | $
|
per unit |
| c. Income from operations | $
|
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