Sales Price per Unit: $35/unit Variable Manufacturing Costs: $22/unit Variable Sales Commissions: $4/unit Fixed Manufacturing Costs: $15,000 Fixed Sales and Administrative Costs: $25,000 Sarah budgeted $210,000 in Total Sales Actual Sales were $225,000 What is Sarah's budgeted Contribution Margin per unit? a. $13/unit b. $9/unit c. $11/unit d. Unable to determine with the information provided

Sales Price per Unit: $35/unit Variable Manufacturing Costs: $22/unit Variable Sales Commissions: $4/unit Fixed Manufacturing Costs: $15,000 Fixed Sales and Administrative Costs: $25,000 Sarah budgeted $210,000 in Total Sales Actual Sales were $225,000 What is Sarah's budgeted Contribution Margin per unit? a. $13/unit b. $9/unit c. $11/unit d. Unable to determine with the information provided

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

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...

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Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Unit variable cost is 21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is 30,000 and fixed selling and administrative expense is 48,000. Required: 1. Calculate the variable cost ratio. 2. Calculate the contribution margin ratio. 3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin.
Computing unit costs at different levels of production French Fragrances, Ltd. budgeted for 12,000 bottles of perfume Belle during May. The unit cost of Belle was $20, consisting of direct materials, $7; direct labor, $8; and factory overhead, $5 (fixed, $2; variable, $3). What would be the unit cost if 10,000 bottles were manufactured? (Hint: You must first determine the total fixed costs.) What would be the unit cost if 20,000 bottles were manufactured? Explain why a difference occurs in the unit costs.
Jasmine Companys expected sales were 2,000 units at 100 per unit. During 20x1, it had actual sales of 1,800 units at 110 per unit. Budgeted variable costs were 60 per unit. What is Jasmines sales price variance? a. 8,000 (U) b. 20,000 (U) c. 18,000 (F) d. 2,000 (U)
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Revenue (8,100 units) $16,200 Variable costs 4,050 Contribution margin $12,150 Fixed costs 4,050 Net income $ 8,100 If actual production totals 8,500 units, the flexible budget would show total costs of: Multiple Choice $8,300. None of these answers are correct. $8,400. $16,600.
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Abel Company manufactures a single product. Budgeted data are as follows: Production /sales 12,000 units Variable costs per unit P 7.20 Fixed costs P 9,600 Current assets 60% of sales Fixed assets P 48,000 The company wants to earn 20% return on investment (Assets), What should be the selling price per unit?a. 8.00b. 10.00c. 12.00d. 12.50
Sales (7,000 units x $400 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Insurance Office rent Income 1. Compute total variable cost per unit. 2 Compute total fixed costs. $ 2,800,000 280,000 490,000 175,000 65,000 140,000 154,000 210,000 35,000 20,000 36,000 1,195,000 3. Prepare a flexible budget at activity levels of 6,000 units and 8,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 6,000 units and 8,000 units. Sales Variable costs Direct materials Direct labor Sales commissions Indirect materials Shipping Total variable costs Contribution margin Fixed costs Supervisor salary Administration salaries Depreciation-Office equipment Insurance Office rent Income TEMPO COMPANY Flexible Budget Variable Amount Total Fixed per Unit Cost S 400.00 Flexible Budget for.…
a. If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? b. If the contribution margin ratio is 30%, sales are $900,000, and fixed costs are $200,000, what is the operating income? operating income %24
esc Rich & Sweet Candy Company's budgeted contribution income statement assumed it would produce and sell 5,000 units and includes the following: Total Sales Revenue Total Variable Costs Total Fixed Costs $100,000 40,000 50,000 In preparing its flexible budget given the actual units sold was 10% greater than budgeted, its total fixed costs would equal 40 Click Save and Submit to save and submit. Click Save All Answers to save all answers. ! 1 7 Q A 2 W S #m 3 E $ 4 D R do L % 5 F MacBook Pro < 6 T G & 7 Y H * 00 8 S