Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2021:Sales quantityUnit selling priceUnit variable costsFixed costs2,200 barrels$75 per barrel$45 per barrel$18,480 If the company wishes to increase its total dollar contribution margin by 30% in 2022, by how much will it need to increase itssales dollars if all other factors (other than sales quantity) remain constant?Total increase in sales required$

Contribution margin is the difference of sales and variable cost. It is directly proportional to the…

Answered: Sheridan Bucket Co., a manufacturer of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company reported the following data: • Sales price per unit: $10 • Fixed cost per month: $20,000 Variable cost per unit: $2 How many units must this company sell each month in order to reach a target profit of $50,000?
How do I find the dollar sales volume to produce an income of 864,000 before taxes when the maximum capacity with present facilities = 40,000 units, total fixed costs per period = 468,000, variable cost per unit = 128, and sales price per unit = 212?
Overtime produces and sells a mantel clock for $200 per unit. In 2020, 41,000 clocks were produced and 37,000 were sold. Other information for the year includes: Direct materials $42.00 per unit Direct manufacturing labor $8.00 per unit Variable manufacturing costs $5.00 per unit Sales commissions $14.50 per unit Fixed manufacturing costs $64.00 per unit Administrative expenses, all fixed $38.50 per unit What is the inventoriable cost per unit using absorption costing and variable costing? a. $119.00, $55.00 b. $117.00, $53.00 c. $49.00, $51.00 d. $53.00, $42.00
Nicolas Enterprises sells a product for $111 per unit. The variable cost is $63 per unit, while fixed costs are $387,072. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $119 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $119 per unit units
Zhao Company has fixed costs of $455,600. Its single product sells for $191 per unit, and variable costs are $124 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. $ a. Margin of safety (in dollar) 611,200 b. Margin of safety (%)
Estrada Corporation produced 200,000 watches that it sold for $20 each during 2019. The company determined that fixed manufacturing cost per unit was $9 per watch. The company reported a $1,200,000 gross margin on its 2019 financial statements. Required Determine the variable cost per unit, the total variable cost, and the total contribution margin.
Nike company sells 80,000 units for $9 a unit. The fixed cost is $120,000 and the Net Income is $360,000. What should be reported as variable expenses in the CVP income statement
Crane Industries produces and sells a cell phone-operated home security control systems. Information regarding the costs and sales during May 2022 is as follows. Unit selling price $45.00 Unit variable costs $25.20 Total monthly fixed costs $124,000 Units sold 8,400 Prepare a CVP income statement for Crane Industries for the month of May. (Round per unit answers to 2 decimal places, e.g. 15.25.)
Zhao Co. has fixed costs of $390,600. Its single product sells for $181 per unit, and variable costs are $119 per unit. Compute the level of sales in units needed to produce a target (pretax) income of $124,000.

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2021: Sales quantity Unit selling price Unit variable costs Fixed costs 2,200 barrels $75 per barrel $45 per barrel $18,480