Surf Company can sell all of the two surfboard models it produces, but it has only 424 direct labor hours available. The Glide modelrequires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $224 forGlide and $348 for Ultra.(a) Compute the contribution margin per direct labor hour for each product.(b) Determine the best sales mix and the resulting contribution margin.Complete this question by entering your answers in the tabs below.Required A Required BCompute the contribution margin per direct labor hour for each product.GlideUltraContribution margin per direct labor hour< Required ARequired B >

Contribution Margin per Direct Labor HourGlide:Contribution margin per unit = $224 (given)Direct…

Answered: Surf Company can sell all of the two…

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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Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold Total costs 460 750 910 Variable costs $110,860 $ ? Fixed costs per year Total costs ? ? Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? ? ? ? ? $ 522.75 Required: 1. Complete the table. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $690. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of bikes produced and sold 460 Units 750 Units 910 Units Total costs Variable costs $ 110,860 Fixed costs per year Total costs $ 110,860 $ O $ Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $…
Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,160 per desk unit and $690 per chair. Variable costs are $695 per desk unit and $345 per chair. Fixed costs are $204,330. Required: 1. Compute the weighted-average contribution margin. 2. Compute the break-even point in units. 3. Compute the number of units of each product that would be sold at the break-even point. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the weighted-average contribution margin. (Round your final answer to the nearest whole number.) Weighted-average contribution margin Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,160 per desk unit and $690 per chair. Variable costs are $695 per desk unit and $345 per chair. Fixed costs are $204,330. Required: 1. Compute the weighted-average contribution margin. 2.…
Presidio, Incorporated, produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $630. 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. Note: Round your Cost per Unit' answers to 2 decimal places. Bikes Produced and Sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 720 Units 890 Units 1,902 Units $ 187,200 187,200 $ 0 $ 0 $ 0.00 Required 1 543.00 $ 0.00 Required 2 >
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A Product B Product C Cordova currently is limited to 50,000 labor hours per month. Required: Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal places.) Contribution Margin Product B Ⓒ Product C O Product A Product A Product B Product C $46.00 $56.00 $86.00 22.00 12.25 38.00 8.00 8.00 2.50 4.00 $ $ $ 8.00 1.50 14.67 CM per DL hour 13.12 CM per DL hour 15.25 CM per DL hour Which product would be Cordova's first choice to produce?
Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,340 per desk unit and $590 per chair. Variable costs are $805 per desk unit and $295 per chair. Fixed costs are $171,210.Required:1. Compute the weighted-average contribution margin.2. Compute the break-even point in units.3. Compute the number of units of each product that would be sold at the break-even point.
Logan Company produces two products, Standard and Premier. Logan can sell all of the Standard and Premier products it can produce, but it has limited production capacity. Machine hours per unit for Standard is 4 hour and for Premier is 6.0 hours. The company has 226,800 machine hours available. Contribution margin per unit is $24 for Standard and $30 for Premier. What is the total contribution margin if Logan chooses the most profitable sales mix? Multiple Choice $1,760,000. $1,360,800. $1,910,000.$2,310,000. $1,300,000. Please don't give solution in image
Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,250 per desk unit and $500 per chair. The variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000. Required 1. Compute the selling price per composite unit. 2. Compute the variable costs per composite unit. 3. Compute the break-even point in composite units. 4. Compute the number of units of each product that would be sold at the break-even point.
Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit. Selling price per unit Skateboards $ 200 Scooters) $ 400 120 310 Variable costs per unit (a) Compute the contribution margin per unit (b) Compute the contribution margin per machine hour (a) Contribution margin pet und Contion margm per machine hour Skateboards Scooters
Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 160,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Best installs 4,000 windows. Use (a) the Equation method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) X X )-( )-( X X 700 600 X = Operating income = Next, use (b) the contribution method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. = Operating income
Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $510 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 850 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $67,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.
Olsen Company produces two products. Product A has a contribution margin of $30 and requires 10 machine hours. Product B has a contribution margin of $24 and requires 4 machine hours. Determine the more profitable product assuming the machine hours are the constraint. Unit contribution margin per bottleneck hour:Product A $_____Product B $_____ Product ____ is most profitable.
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 $88 per unit. Determine the markup percentage on total cost. %

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