Seascape Company has two products: Product A has a contribution margin per unit of $17 and Product B has a contribution margin of$19 per unit.Required:Calculate the weighted-average unit contribution margin if Seascape has a 40 % / 60% ( Product A/Product B) product mix.Note: Round your answer to 2 decimal places.Weighted-average CM Heather Hudson makes stuffed teddy bears. Recent information for her business follows:Selling price per bearTotal fixed costs per month$ 34.501,370.0017.50Variable cost per bearRequired:Determine the degree of operating leverage if she sells 420 bears this month.Note: Round your answer to 2 decimal places.Degree of operating leverage

Contribution margin is an important metric that is used in cost volume profit analysis. It is the…

Answered: Seascape Company has two products:…

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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Molly Company sells 23,000 units at $28 per unit. Variable costs are $21.56 per unit, and fixed costs are $59,200. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. Line Item Description Answer a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Operating income
Bluegill Company sells 15,500 units at $320 per unit. Fixed costs are $248,000 and income from operations is $2,728,000. Determine the following: Round the contribution margin ratio to two decimal places. a. Variable cost per unit b. Unit contribution margin per unit c. Contribution margin ratio
Mars Company manufactures and sells three products. Relevant per unit data concerning each product are given below: Product A B C Selling price $8 $12 $18 Variable costs and expenses $5 $10 $15 Machine hours to produce 2 1 2 Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.25.) Product A Product B Product C Contribution margin per unit of limited resource $ $ $ Assuming 3,000 additional machine hours are available, which product should be manufactured? What is the total contribution margin if the hours are (1) divided equally amoung the products and (2) if they are allocated entirely to the product identified above. Total contribution margin (1) Divided equally amoung the…
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Jamison Company produces and sells Product X at a total cost of $1,300 per unit, of which $880 is product cost and $420 is selling and administrative expenses. In addition, the total cost of $1,300 is made up of $740 variable cost and $560 fixed cost. The desired profit is $169 per unit. Determine the markup percentage on total cost.fill in the blank 1 %
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $800 per unit, of which $540 is product cost and $260 is selling and administrative expenses. In addition, the total cost of $800 is made up of $460 variable cost and $340 fixed cost. The desired profit is $168 per unit. Determine the markup percentage on total cost. %
Two different product lines are manufactured and sold by Cheche Manufacturing Corp. Monthly fixed cost amounted to P90,000. Data with respect to each product lines follows: | Product Cutie P 10.00 5.00 Product Sweetie P 8.00 2.00 Selling price per unit Variable cost per unit Original sales mix Required: a. Based on the original sales mix: 1. What is the weighted contribution margin per unit? 2. What is the combined units to break-even? 60% 40% 3. How many units each product line to be sold in order to break- even? Show proofs. b. Suppose the mix is 50-50 for each product line: 1. What is the weighted contribution margin percentage? 2. What is the combined amount of sales of the two products needed to earn P60,000 per month? 3. How much sales should each product line generated in order for Cheche to earn P60,000 per month? c. Based on the above data (letter b), what is the margin of safety in units, in peso and in percentage? d. Assuming the total combined sales of the two products…
Keller Company sells product ZR101 for $25 per unit. The cost of one unit of ZR101 is $18. The estimated cost to complete a unit is $4, and the estimated cost to sell is $6. At what amount per unit should product ZR101 be reported, applying lower-of-cost-or-net realizable value?
Ferrante Company sells 24,000 units at $22 per unit. Variable costs are $12.54 per unit, and fixed costs are $88,500. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
McGrath electric is a service firm with current service sales of 4,794,549 and a 57% contribution margin. It’s fixed costs are 1,217,297. If there is a 13% in sales, compute the percentage of net increase in operating income for McGrath. Round to the nearest hundred, two decimals.
The average contribution margin per unit for products a, b, and c is 9,50, and 44, respectively. The sales mix was already considered in the calculation of the average contribution margin per unit. The sum of those is the weighted average contribution margin. The fixed costs are $3,117,835. What is the break-even point in units, rounding to the nearest whole unit?
Ferrante Company sells 15,000 units at $47 per unit. Variable costs are $31.96 per unit, and fixed costs are $76,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Income from operations $fill in the blank 3

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