Knox Corporation manufactures an item. The cost structure is:Manufacturing$100$800,000Variable cost per unitTotal fixed costSelling & Administrative$30$203,000In its first year of operations, Knox Corporation produced 70,000 items and sold 64,000 at $200each.Part 1: What is the contribution margin at the end of the first year of operations under thevariable costing method?Part 2: Which costing method (variable or absorption) will generate a higher net operatingincome in Knox Corporation's first year of operations and by how much? Hint: See page6-21 Illustration 6A- for Variable Costing model and page 6-20 Illustration 6Aguidance on Absorption Costing model.

Variable costing and absorption costing methods differ in the treatment of fixed costs. Under…

Answered: Part 1: What is the contribution margin…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Problem 4. Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income Borunda Corporation has provided the following data for its two most recent years of operation: Selling price per unit Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 1 0 10,000 8,000 2,000 Year 2 2,000 12,000 12,000 2,000 $83 $9 $7 $3 $360,000 $6 $77,000 Required: a. Assume the company uses absorption costing. Prepare an income statement for each year. b. Assume the company uses variable costing. Prepare an income statement for each year. c. Prepare a report in good form…
Subject :- Account
Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio: E (Click the icon to view the table.) Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.) A Number of units 1,510 units Sale price per unit $ 1,600 Variable costs per unit 1, 120 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio Data Table A Number of units 1,510 units 14,390 units 2,450 units Sale price per unit 1,600 $ 4.400 5,000 Variable costs per unit 1,120 880 3,750 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Final Check
Can u help me how to solve others in excel like the contribution margin etc, break even point and etc...
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Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,300 units at $375 each) Variable costs (10,300 units at $300 each) Contribution margin Fixed costs Income Exercise 18-18 (Algo) Evaluating strategies-price increase LO C2 If the company raises its selling price to $400 per unit. 1. Compute Hudson Company's contribution margin per unit. 2. Compute Hudson Company's contribution margin ratio. 3. Compute Hudson Company's break-even point in units. 4. Compute Hudson Company's break-even point in sales dollars. 1. Contribution margin 2. Contribution margin ratio 3. Break-even point 4. Break-even sales dollars $ 3,862,500 3,090,000 772,500 600,000 $ 172,500 per unit % units
Q1:- The following data relate to maintenance costs of Kim company for the last six months of 2010:- Months Activity level- hours (X) Maintenance costs $ (Y) 1 4 24 2 3 22 3 8. 32 4 6. 28 5 7 30 6. 20 Required: 1- Determine variable and fixed costs using a high- low method of activity and writing the cost equation.
First: When the number of units in inventories decrease between the beginning and end of the period, absorption costing net operating income will typically be greater than variable costing net operating income. Second: When viewed over the long term, accumulated net operating income will be the same for variable and absorption costing if there are no ending inventories at the end of the term. * a. Both statements are true b. Only the first statement is true c. Only the second statement is true d. Both statements are false
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials — $28 Direct labor — 19 Factory overhead $98,800 14 Selling expenses: Sales salaries and commissions 20,500 6 Advertising 6,900 — Travel 1,500 — Miscellaneous selling expense 1,700 6 Administrative expenses: Office and officers' salaries 20,100 — Supplies 2,500 2…
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixedCost EstimatedVariableCost(perunitsold) Production costs: Direct materials $13 Direct labor 9 Factory overhead $210,100 6 Selling expenses: Sales salaries and commissions 43,700 3 Advertising 14,800 Travel 3,300 Miscellaneous selling expense 3,600 3 Administrative expenses: Office and officers' salaries 42,700 Supplies 5,300 1…

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