Salesvolume(units)RevenueVariablecostsDirectmaterialsDirectlaborContributionmarginFixedcostsProfitProduct A400$60,000Product B600$60,000$25,000 $15,000$10,000 $15,000Total1,000$120,000$40,000$25,000$25,000 $30,000 $55,000$50,000$5,000Use direct labor dollars as the cost driver.Compute allocated fixed costs for Product A:

Allocation of cost is one of the most important activities in cost accounting. It enables…

Sales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit 400 $60,000 600 $60,000 $25,000 $15,000 1,000 $120,000 $40,000 $10,000 $15,000 $25,000 $25,000 $30,000 $55,000 $50,000 $5,000 Use direct labor dollars as the cost driver.

Sales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit 400 $60,000 600 $60,000 $25,000 $15,000 1,000 $120,000 $40,000 $10,000 $15,000 $25,000 $25,000 $30,000 $55,000 $50,000 $5,000 Use direct labor dollars as the cost driver.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Total Amount Units Sales Variable Costs: 31,250 Per Unit $ 445,313 $ 14.25 Direct Materials $ 125,000 4.00 = Direct Labor $ 28,000 0.90 = Variable Manufacturing Overhead $ 66,250 2.12 = Sales Commissions $ 15,625 0.50 = Shipping Variable Billing Total Variable Costs $ 3,125 0.10 $ 313 0.01 $ 238,313 7.63 Contribution Margin $ 207,000 6.62 Fixed Costs: Fixed Manufacturing Overhead Advertising Sales and Admin. Salaries Fixed Billing Total Fixed Costs Net Operating Income (Loss) 40,000 16,800 87,300 10,000 154,100 $ 52,900 F. Using the budgeted contribution margin income statement in part E. above, calculate the following: a. Breakeven in units: b. Operating Leverage Multiplier: Given a sales volume increase of 8%, operating income will increase by: c. Percent: d. Dollars: #N/A #N/A #N/A #N/A
Sales revenue (1000 units) $20,000 Fixed costs $29,000 Contribution margin ration 60%, what is the variable cost per unit?
The following information is for Bullwinkle Industries Inc.: Line Item Description East West Sales volume (units): Product Alpha 45,000 38,000 Product Omega 60,000 50,000 Sales price: Product Alpha $500 $600 Product Omega $250 $225 Variable cost per unit: Product Alpha $275 $275 Product Omega $140 $140 a. Determine the contribution margin for the East Region and West Region.East Region: fill in the blank 1 of 2$West Region: fill in the blank 2 of 2$ b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.East Region: fill in the blank 1 of 2%West Region: fill in the blank 2 of 2%
Mr
Total sales = $120,000. Contribution Margin = 40%. Segment Performance MArgin = 15%. Segment MArgin = 7%. Compute Traceable NOT Controllable Fixed Expenses ($s).
What is the expected added profit from the Challenger line ? Challenger Bikes Selling Price per Unit Materials Direct Labour Overhead (40% Variable) Total Per Unit Relevant Cost Estimated Additional Contribution Margin Estimated Sales Unit Estimated Increase in profit $39.80 19.6 9.8 (40%*24.50) $69.20 $92.29 $69.20 $23.09 25000 $577,250
Donnelly Company has three products, R2, R4, and R2D2. The following information is available: Product R2 Product R4 Product R2D2 Sales $30,000 $45,000 $12,000 Variable Costs 18,000 24,000 7,500 Contribution Margin 12,000 21,000 4,500 Fixed Costs: Avoidable 4,500 9,000 3,000 Unavoidable 3,000 4,500 2,700 Operating Income $4,500 $7,500 $(1,200) Donnelly Company is thinking of dropping Product R2D2 because it is reporting a loss. Assuming Donnelly drops Product R2D2 and does not replace it, what will happen to operating income?
The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 138,000 100.00 $ 138,000 100.00 Variable costs 82,800 60.00 41,400 30.00 Contribution margin 55,200 40.00 96,600 70.00 Fixed costs 36,450 72,500 Operating income (πB) $ 18,750 $ 24,100 Y Company's margin of safety (MOS) in sales dollars (rounded) is:
Determine the missing amounts. elling te $640 $300 1300 (e) LA MA $ Unit Variable Costs $352 207 (c) 975 (f) Unit Contribution Margin 288 $93 $325 (a) Contribution Margin Ratio 1 % (b) % (d) 25 %
Sales revenue Variable costs: Production Administrative Contribution margin Fixed costs Operating profit Status Quo 45,000 Units $ 1,170,000.0 X S $ $ GA 607,500 X 112,500 X 45,000.0 X $ 292,500.0 X 63,000.0 X S Costs and Revenues (Thousands of Dollars) Alternative 55,000 Units 1,370,000.0 $ 200,000.0 higher Difference 742,500 X 135,000 higher 112,500 X none 515,000.0 $ 65,000.0 higher 292,500.0 X none 128,000.0 $ 65,000.0 higher Required B > < Required A