Answered: Riverside Manufacturing has a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3EA: A product has a sales price of $150 and a per-unit contribution margin of $50. What is the...

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A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio?
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
Calculate the per-unit contribution margin of a product that has a sale price of $150 if the variable costs per unit are $40.
If the contribution margin ratio solve this question
A company has return on sales of 15% at sales of $400,000. Its fixed cost are $90,000; variable costs are $25 per unit. A. What are sales in units? Why? How? B. What is contribution margin per unit? Why? How? C. What is income? Why? How?
What is the contribution margin per unit?
What is the contribution margin ratio? (I need the steps to get to the answer) 38%, 26.8% or 11.8%
sales are $500,000, variable costs are $200,000, and fixed costs are $240,000, what is the contribution margin ratio?
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Riverside Manufacturing has a contribution margin ratio of 40%. If their sales are $1,200,000 and fixed costs are $300,000, what is their operating profit?