QS 19-15 (Algo) Computing contribution margin LO P2D'Souza Company sold 6,000 units of its product for $88 per unit. Each unit had $51.60 in varlable cost of goods sold and$10.80 in variable selling and administrative expenses. Compute contribution margin.D'SOUZA COMPANYContribution MarginSalesVariable expensesVariable cost of goods soldVariable selling and administrative expensesContribution marginUnits$ per unitTotal

The contribution Margin is calculated as difference between sales and variable cost. It os…

Answered: QS 19-15 (Algo) Computing contribution…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 4MCQ

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West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.25/unit) Gross profit Operating expenses: Selling ($1,200 + $0.10/unit) Administrative ($3,500 + $0.20/unit) Operating income $34,400 22,775 $ 11,625 1,950 5,000 $ 4,675 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to 1. 11,250 units. 2. 3,750 units. d. Refer to your answer to part a for total revenues of $34,400. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase by $14,500. 2. Decrease by $3,000.
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Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 8,000 units. Cost formulas also are shown: Revenues $ 34,800 Cost of goods sold ($5,700 + $2.10/unit) 22,500 Gross profit $ 12,300 Operating expenses: Selling ($1,180 + $0.09/unit) 1,900 Administrative ($3,650 + $0.20/unit) 5,250 Operating income $ 5,150 Required: Prepare an income statement in the contribution margin format. Calculate the contribution margin per unit and the contribution margin ratio. Calculate the firm's operating income (or loss) if the volume changed from 8,000 units to 12,000 units. 4,000 units. Refer to your answer to part a for total revenues of $34,800. Calculate the firm’s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues Increase by $11,000. Decrease by $3,000.
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Compute the missing amounts in the contribution income statement shown below: Note: Round "Per Unit" answers to 2 decimal places. Number of units sold Sales Variable costs Contribution margin Fixed costs Income Company A Total $ 525,300 336,600 $ 122,400 Per unit $ 103.00 Company B 2,450 Total 142,100 193,550 71,050 Per unit
Morwenna, Inc. reports the following information for August: Sales Revenue Variable Cost of Goods Sold Fixed Cost of Goods Sold Variable Selling and Administrative Costs Fixed Selling and Administrative Costs $900,000 150,000 60,000 100,000 60,000 Calculate the operating income for August using absorption costing. OA. $1,060,000 O B. $370,000 OC. $530,000 D. $250,000
Answer letter c and d only
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Brush Industries reports the following information for May: Sales Fixed cost of goods sold $9,30,000 $ 1,06,000 Variable cost of goods sold $ 2,56,000 Fixed selling and administrative costs $ 1,06,000 Variable selling and administrative costs $ 1,31,000 Calculate the gross margin for May under absorption costing. a. $674,000 b. $343,000 c. $555,000 d. $568,000
A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income The company's contribution margin ratio is closest to: Multiple Choice O 74.5% 81.6% 32.2% 50.6%

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