Snellville Co. reports the following data: Line Item Description Amount Sales $673,800 Variable costs (377,300) Contribution margin $296,500 Fixed costs (214,100) Operating income $82,400 Determine Snellville Co.’s operating leverage. Round your answer to one decimal place. fill in the blank 1 of 1
Q: Presented here is the income statement for Fairchild Co. for March: Sales $ 81,500 Cost…
A: A contribution margin income statement subtracts all variable expenses from sales to calculate the…
Q: Bryce Co. sales are $876,000, variable costs are $469,800, and operating income is $233,000. What is…
A: Contribution margin: Difference between the sales and the variable costs is called contribution…
Q: Determine Tom Company's operating leverage. Round your answer to one decimal place.
A: Operating leverage is calculated to find out how an increase in the revenue can increase the…
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A: To calculate sales revenue required to earn target income, we need to calculate target contribution…
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A: The objective of the question is to calculate the sales revenue necessary for Bolton Inc. to earn a…
Q: Asha Inc. and Samir Inc. have the following operating data: Line Item Description Asha Inc. Samir…
A: The operating leverage measures a company's ability to increase its operating income by increasing…
Q: Bryce Co. sales are $876,000, variable costs are $469,700, and income from operations is $216,000.…
A: Given, Sales = $876,000 Variable costs = $469,700 Contribution margin = Sales - Variable costs
Q: The following analysis of selected data is for each of the two services Gates Corporation provides.…
A: Contribution margin: Contribution margin is the difference between the revenue and the variable…
Q: The CVP income statement for Jen Company for 2022 appears below: Jen COMPANY CVP Income Statement…
A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…
Q: Bryce Co. sales are $891,000, variable costs are $460,100, and operating income is $203,000. The…
A: The contribution margin ratio =( sales - variable costs) / sales * 100 =($891,000 - $460,100 )/…
Q: Compute the contribution margin ratio and fixed costs using the following data. Sales $ 4,500…
A: Contribution margin ratio is calculated by dividing the contribution margin by sales revenue.…
Q: Tucker Co. reports the following data: Line Item Description Amount Sales $911,900 Variable…
A: The objective of the question is to calculate the operating leverage of Tucker Co. Operating…
Q: Operating leverage Haywood Co. reports the following data: Line Item Description Amount Sales…
A: Operating income is a measure used to evaluate the effect of change in revenues on the operating…
Q: a. Coastal Company budgets sales of $870,000, fixed costs of $62,600, and variable costs of…
A: The objective of the first part of the question is to calculate the contribution margin ratio for…
Q: ! Required information [The following information applies to the questions displayed below.] Hudson…
A: A financial concept known as the "margin of safety" evaluates the level of safety or buffer that a…
Q: Bluegill Company sells 16,700 units at $260 per unit. Fixed costs are $217,100, and operating income…
A: Variable costs are those costs which changes directly with change in level of activity. Contribution…
Q: If the contribution margin ratio for France Company is 32%, sales are $488,000, and fixed costs are…
A: Contribution margin = Sales x contribution margin ratio Operating income = Contribution margin -…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $346,400…
A: Operating leverage is calculated as contribution margin divided by operating income.
Q: Bluegill Company sells 13,700 units at $400 per unit. Fixed costs are $274,000, and income from…
A: Formula: Contribution margin = Selling price - variable cost Deduction of variable cost from selling…
Q: Annual financial information for a company follows. Contribution Margin Income Statement Sales…
A: Answer:- Relevant Cost:- It is the cost that is different in different alternatives. It is used for…
Q: Lillibridge & Friends, Incorporated provides you with the following data for its single product:…
A: Prime Cost = Direct material + direct labourContribution margin = selling price - variable…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $295,300…
A: Leverage analysis is a financial assessment that involves evaluating the impact of fixed costs on a…
Q: Compute the missing amounts in the contribution Income statement shown below: (Round "Per Unit"…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Staley Co. manufactures electronic equipment. The following is a summary of its basic cost and…
A: Contribution margin: The difference between the sales and the variable costs is called the…
Q: The CVP income statements shown below are available for Blossom Company and Crane Company. Sales…
A: The contribution margin is calculated as the difference between sales and contribution margin. The…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $290,900…
A: Degree of operating leverage (DOL): DOL Reflects an organization's variable and fixed cost…
Q: Ferrante Company sells 23,000 units at $50 per unit. Variable costs are $39.50 per unit, and fixed…
A: 1. CVP analysis is used to identify the changes in costs and volume that affect a company's…
Q: Determine Teague Co.'s operating leverage. Round your answer to one decimal plac
A: Operating leverage is an important concept in finance. It shows the degree to which a firm can…
Q: Shock Company manufactures electronic equipment. The following is a summary of its basic cost and…
A: Operating income = Total contribution - Fixed cost
Q: Bluegill Company sells 16,200 units at $360 per unit. Fixed costs are $291,600, and operating income…
A: Sales volume = 16,200 units. Selling price per unit = $360 per unit Sales revenue = 360 * 16,200 =…
Q: a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal…
A: Leverage can be commonly measured into 3 kinds, namely Operating Leverage (OL) Financing Leverage…
Q: Ferrante Company sells 26,000 units at $12 per unit. Variable costs are $10.08 per unit, and fixed…
A: Unit contribution margin = Selling price - Unit variable cost Contribution margin ratio = Unit…
Q: Molly Company sells 23,000 units at $28 per unit. Variable costs are $21.56 per unit, and fixed…
A: The objective of the question is to calculate the contribution margin ratio, the unit contribution…
Q: The following income statement applies to Finch Company for the current year: Income Statement Sales…
A: The contribution margin approach can be used to calculate the magnitude of operating leverage, which…
Q: Brand Company provides the following information about its single product. Targeted operating income…
A: Contribution margin is an important technique used in the cost volume profit analysis. It is the…
Q: A merchandising company has provided the following contribution format income statement: Sales…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales…
A: Solution:Contribution margin refers to the revenue of the firm after deducting variable cost from…
Q: Whirly Corporation’s most recent income statement is shown below: Total Per Unit Sales…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: Crane Inc. had sales of $2,390,000 for the first quarter of 2022 (it sold 239,000 units). In making…
A: As per the absorption costing method, the product cost includes fixed and variable manufacturing…
Q: Restate the following income statement in contribution margin format. (Round answers to 2 decimal…
A: Step 1 A contribution margin income statement is an income statement in which all variable expenses…
Q: Willie Company sells 39,000 units at $21 per unit. Variable costs are $14.70 per unit, and fixed…
A: a. Compute contribution margin ratio.
Q: Harry Company sells 37,000 units at $44 per unit. Variable costs are $36.52 per unit, and fixed…
A: Contribution margin can be defined as the cost-accounting technique that determines that whether a…
Q: Bluegill Company sells 8,900 units at $320 per unit. Fixed costs are $142,400, and income from…
A: Contribution margin statement: Sales XXXLess: Variable expenses…
Q: Tucker Company reports the following data: Sales $415,400 Variable costs 278,300 Contribution…
A: Operating Leverage = Total Contribution margin / Operating Income
Q: Determine Cartersville Co.’s operating leverage.
A: Operating leverage: It is the ratio that measures the proportion of fixed cost on the total costs…
Q: The single-column CVP income statements shown below are available for Wildhorse Company and Blossom…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Bluegill Company sells 7,500 units at $160 per unit. Fixed costs are $60,000 and income from…
A: Total Sales = Variable Cost + Fixed Cost +Profit
Q: Teague Co. reports the following data: Sales $489,300 Variable costs 278,900 Contribution…
A: Solution Formula = Operating leverage = Contribution margin / Operating income.
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- If the contribution margin ratio for Martinez Company is 51%, sales were $707,000, and fixed costs were $248,790, what was the operating income?$fill in the blank 2A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales revenue 260,000 $ 1,118,000 Variable manufacturing expense $ 429,000 Fixed manufacturing expense $ 288,000 $ 91,000 Variable selling and administrative expense Fixed selling and administrative expense Net operating income $ 228,000 $82,000 What is the company's unit contribution margin? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $4.30 per unit $0.32 per unit hBluegill Company sells 14,600 units at $320 per unit. Fixed costs are $233,600, and operating income is $1,635,200. Determine the following: a. Variable cost per unit $fill in the blank 1 b. Unit contribution margin $fill in the blank 2 per unit c. Contribution margin ratio fill in the blank 3 %
- Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $374,700 $1,056,000 Variable costs 150,300 633,600 Contribution margin $224,400 $422,400 Fixed costs 158,400 246,400 Income from operations $66,000 $176,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. b. How much would income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. $ %Bluegill Company sells 16,900 units at $100 per unit. Fixed costs are $84,500, and income from operations is $929,500. Determine the following: Round the contribution margin ratio to two decimal places. a. Variable cost per unit $fill in the blank 1 b. Unit contribution margin $fill in the blank 2 per unit c. Contribution margin ratio fill in the blank 3 %CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…
- Accel Corp makes two products: C and D. The following data have been summarized (Click the icon to view the data.) Accel Corp desires a 28% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Accel have to charge the customer to achieve that gross profit? Round to two decimal places Begin by selecting the formula to compute the amount that the company should charge for each product Direct labor cost per unit Direct materials cost per unit Indirect manufacturing cost per unit Product cost as a percentage of sales price Target gross profit percentage Total product cost per unit Get more help. Clear all Show work Required sales price per unit Check answerThe following income statements illustrate different cost structures for two competing companies: Income Statements Number of customers (a) Sales revenue (a $200) Variable cost (ax $140) Contribution margin Fixed cost Net income Company Name Hill 200 $40,000 N/A 40,000 (28,000) $12,000 Creek 200 $40,000 (28,000) 12,000 0 $12,000 Required a. Reconstruct Hill's income statement, assuming that it serves 400 customers when it lures 200 customers away from Creek by lowering the sales price to $120 per customer. b. Reconstruct Creek's income statement, assuming that it serves 400 customers when it lures 200 customers away from Hill by lowering the sales price to $120 per customer. Complete this question by entering your answers in the tabs below.The following information is available from the accounting records of Wisconsin International Inc.. Sales at 65% of Capacity $89,500 Fixed costs $36,950 Variable costs $28,350 Total costs $65,300 Net Income $24,200 a) Compute the break-even point in sales dollars (round off two the nearest cent) $ b) Compute the break-even point as a percent of capacity. (round off two decimal places) %
- Bryce Co. sales are $897,000, variable costs are $468,500, and operating income is $276,000. The contribution margin ratio is Oa. $2.2% Ob. 57.4% Oc. 47.8% Od. 43.5%The Tom Company reports the following data. Sales $181,203 Variable costs 94,503 Fixed costs 35,700 Determine Tom Company's operating leverage. Round your answer to one decimal place.Market Inc. has two divisions, Telbot and Heather Following is the Income statement for the past month 27 Total Talbot Beather $217, 500 $217,500 $435,000 195,750 65,250 261,000 21,750 152, 250 174,000 78, 300 78,300 156, 600 Sales Variable Costs Contribution Margin Fired Costs (allocated) Profit Margin $(56,550) $ 73,950 $ 17,400 What would Marker's proft margih be if the Talbot division was dropped and all fixed costs are unavoidable? Mutiole Choice $56.550 loss $4.350 loss $73.950 profit