Answered: Sales are $1,000,000 for a product with…

Sales are $1,000,000 for a product with a variable cost per unit of $6 and a sales price of $20. If fixed costs are $250,000, what is the contribution margin?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1EB: Calculate the per-unit contribution margin of a product that has a sale price of $150 if the...

See similar textbooks

Related questions

Q: Calculate the current liabilities general accounting question

A: To calculate the total current liabilities, add all the liabilities listed: Total Current…

Q: Solve this financial accounting problem

A: Explanation: We can calculate the Return on Equity (ROE) using the DuPont equation. As per the…

Q: Provide Answer

A: Concept of Contribution MarginThe contribution margin represents the amount of revenue remaining…

Q: Compute the net income for the year on these financial accounting

A: To compute the net income for the year, we use the following formula: Net Income = Increase in…

Q: Quick answer of this accounting questions

A: To calculate the overhead rate for each activity, you need to divide the total overhead for each…

Q: Annapolis Company completes Job #601 which has a standard of 600 labor hours at a standard rate of…

A: We are tasked with calculating the Labor Rate Variance (LRV) for Job #601, which involves comparing…

Q: Accounting cash flow financial accounting

A: Below the correct answer of all questions: Step 1:Question - Accounting: When should…

Q: Please given correct answer

A: Step 1: Definition of MarginThe margin represents the percentage of net operating income earned from…

Q: Factory overhead is: 6150000

A: Step 1: Formula Prime costs = Direct materials + Direct laborDirect labor = Prime costs - Direct…

Q: 7. Financial Accounting: Assume the following is the stockholders' equity section of the 2019 Max &…

A: Explanation of Issued Shares:Issued shares refer to the total number of shares that a company has…

Q: Need answer

A: The question requires the determination of the additional sales to achieve a desired profit. Sales…

Q: Predetermined overhead rate?

A: Explanation of Overhead: Overhead refers to all indirect costs associated with running a business…

Q: Ans plz

A: Step 1: Definition of High-Low MethodThe high-low method is a cost analysis tool used to estimate…

Q: Answer this accounting question

A: Explanation of Biological Assets: Biological assets are living plants or animals used in…

Q: Solve this question answer general Accounting

A: Step 1: Define Cost-Volume-Profit (CVP) AnalysisThe CVP analysis is considered to figure out the…

Q: The difference between a company's sales and cost of goods sold is referred to as the: a. gross…

A: The correct answer is:a. gross profit. Explanation:Gross Profit:The difference between a company's…

Q: None

A: Key Definitions:Leverage Ratio:The leverage ratio is the ratio of equity to total assets. A leverage…

Q: None

A: To calculate the return on equity (ROE), you can use the following formula:ROE= Net Income / Equity…

Q: General accounting question

A: To calculate the equivalent taxable yield, use the formula:Equivalent Taxable Yield=Tax-Free…

Q: Solve this question general Accounting

A: Step 1: Define PatentsPatents are rights to use certain inventions exclusively. The inventors need…

Q: Need answers general Accounting question

A: The formula for ROE is:ROE=Net Income/Total EquityGiven:Net Income = $360Total Equity =…

Q: A firm purchases machinery, which has an estimated useful life of 14 years and no salvage value, for…

A: Explanation of Depreciation:Depreciation refers to the gradual reduction in the value of an asset…

Q: A manufacturer sells a product for $45 to a wholesaler, and the wholesaler sells it to a retailer.…

A: FEEL FREE TO ASK FOR CLARIFICATIONS

Q: A put option written on non-controlling interests is? Accounting Problem: A) Recognized as financial…

A: A put option written on non-controlling interests (NCI) gives the non-controlling shareholders the…

Q: I don't need ai answer accounting questions

A: Step 1:Calculate the average accounts receivable as follows:Average accounts receivalbe = (Accounts…

Q: Calculate field and struthers's NOPAT ? General accounting question please solve

A: Step 1: Introduction to income statementIncome statement is referred to as the financial statement…

Q: help me with this

A: Step 1:Net Income increase or decrease by the special order equals the contribution margin from the…

Q: None

A: i) Maximize inventory levels: This is not the objective of the EOQ. Indeed, EOQ emphasizes the…

Q: Compute the return on total assets?

A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) measures a company's…

Q: How will this be shown on the income statement?

A: Step 1: Definition of Contra AccountsContra accounts are accounts used to reduce the balance of a…

Q: A firm has a return on equity of 22 percent. The total asset turnover is 2.9 and the profit margin…

A: Calculate the net income using the formula for Return on Equity (ROE):ROE=Net Income/Total Equity…

Q: None

A: Step 1: Definition of Fixed CostFixed costs remain constant in total regardless of changes in…

Q: I want answer

Q: Hi teacher please help me this question

A: Step 1: Definition of Full Cost Per UnitFull cost per unit refers to the total cost incurred to…

Q: None

A: To compute the net income for the year, we use the following formula: Net Income = Increase in…

Q: Abc

A: Step 1: Calculate the market value of equity (E)The market value of equity is given by:E=Number of…

Q: Quick answer of this accounting questions

A: To calculate the average collection period, follow these steps: Formula:Average Collection Period…

Q: Financial accounting MCQ

A: A subsidiary ledger is used to provide detailed information that supports a control account in the…

Q: Financial Accounting

A: The question requires the determination of the real HPR. Holding period return (HPR) is a measure of…

Q: A company s manufacturing overhead includes $7.10 per machine hour

A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a method used by…

Q: General Accounting

A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) ratio is a valuation metric…

Q: A company is considering whether to adopt a new accounting software system. Discuss the potential…

A: New accounting software implementation may provide considerable benefits to the company. Most of the…

Q: Quick answer of this accounting questions

A: To calculate the Return on Assets (ROA) and Return on Equity (ROE) ratios, use the following…

Q: Need help with this accounting questions

A: Step 1: Definition of Income Tax ExpenseIncome tax expense represents the total tax liability a…

Q: Provide answer

A: Explanation of Contra Revenues: Contra revenues are accounts that reduce gross sales to arrive at…

Q: Get General Account Answer

A: To calculate the unit product cost, we include direct materials, direct labor, and applied…

Q: Expert please provide correct answer

A: Explanation of Consolidation Method:The consolidation method is an accounting technique used when a…

Q: What is the fixed asset turnover for the year.... Please answer the general accounting

A: Step 1: Define Fixed Asset TurnoverThe Fixed Asset Turnover ratio measures how efficiently a company…

Q: General accounting

A: Step 1: Definition of Markup and Gross ProfitMarkup is the percentage added to the cost of goods…

Q: The stock holders equity at the end of year

A: Explanation of Stockholders' Equity:Stockholders' equity represents the residual interest in a…

Question

Sales are $1,000,000 for a product with a variable cost per unit of $6 and a sales price of $20. If fixed costs are $250,000, what is the contribution margin?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Calculate the per-unit contribution margin of a product that has a sale price of $150 if the variable costs per unit are $40.
A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio?
I need answer
Sales
If sales are $500,000, variable cost are $200,000, and fixed costs are $240,000, what is the contribution margin ratio?
What is the contribution margin per unit?
A product sells for $25 with variable costs of $15. What is the contribution margin per unit?
Answer with formula for upvotes?
If the selling price per unit is $10, the unit contribution margin is $5, and total fixed expenses are $17,500, what are the breakeven sales in units?
Total fixed cost of a product is IDR 10,000,000 and variable cost is IDR 50,000 per unit. The sale price is IDR.75,000 per unit . How much products should be produced to get BEP? Prove your answer and make a graphic. ..And If the company need profit IDR 10,000,000. How much is the sales price? Prove your answer.
1) What level of output would generate a profit of $15,000 if a product sells for $24.99, has unit variable costs of $9.99, and total fixed costs of $55,005?
sales are $500,000, variable costs are $200,000, and fixed costs are $240,000, what is the contribution margin ratio?