The Coffee Club sells specialist coffee drinks from a rented cart on the beachside on the Gold Coast. Provided below is a summarised version of the income statement for July 2016. Sales revenue - $7,500 Less: Expenses Cost of beverages - $750 Cost of napkins - $750 Rent of cart - $750 Wages - $375 Total expenses $2,625 Profit - $4,875 Calculate the contribution margin ratio. (Round your answer to the nearest whole number.)

The Coffee Club sells specialist coffee drinks from a rented cart on the beachside on the Gold Coast. Provided below is a summarised version of the income statement for July 2016. Sales revenue - $7,500 Less: Expenses Cost of beverages - $750 Cost of napkins - $750 Rent of cart - $750 Wages - $375 Total expenses $2,625 Profit - $4,875 Calculate the contribution margin ratio. (Round your answer to the nearest whole number.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

See similar textbooks

Similar questions

A company is planning to manufacture rocking chairs. The fixed cost is $40,000 and the cost pre rocking chair is $80. Each rocking chair will be sold for $180. In the space below, type in the formula for the revenue function, R(x), from the sale of x rocking chairs.
Coffee & Biscuit sells specialist coffee beverages from a rented cart at the local street market. They also supply free biscuits and napkins to their customers. Provided below are the details from the statement of profit or loss for May 2021. $ Sales revenue 27,000 Cost of beverages 4,800 Cost of biscuits 1,100 Cost of napkins 200 Rent of Cart 2,000 Wages 6,000 Calculate the net profit for May 2021 (ignoring taxes). If the cost of beverages, biscuits and napkins are classified as variable costs, and the rent of cart and wages are classified as fixed costs, calculate the break-even…
Prepare journal entries for the following transactions from Forest Furniture. Oct. 3 Sold 2 couches with a sales price of $2,450 per couch to customer Norman Guzman. Norman Guzman paid with his Draw Plus credit card. The Draw Plus credit card charges Forest Furniture a 3.50% usage fee based on the total sale per transaction. The cost for this sale is $1,800 per couch. Oct. 6 Sold 4 end chairs for a total sales price of $1,250 to April Orozco. April paid in full with cash. The cost of the sale is $800. Oct. 9 Sold 18 can lights with a sales price of $50 per light to customer James Montgomery. James Montgomery paid using his Fund Max credit card. Fund Max charges Forest Furniture a 2.40% usage fee based on the total sale per transaction. The cost for this sale is $30 per light. Oct. 12 Draw Plus made a cash payment in full to Forest Furniture for the transaction from Oct 3, less any usage fees. Oct. 15 Fund Max made a cash payment of 25% of the total due to Forest Furniture…
Prepare journal entries for the following transactions from Forest Furniture. Oct. 3 Sold 2 couches with a sales price of $2,450 per couch to customer Norman Guzman. Norman Guzman paid with his Draw Plus credit card. The Draw Plus credit card charges Forest Furniture a 3.5% usage fee based on the total sale per transaction. The cost for this sale is $1,700 per couch. Oct. 6 Sold 4 end chairs for a total sales price of $1,250 to April Orozco. April paid in full with cash. The cost of the sale is $800. Oct. 9 Sold 18 can lights with a sales price of $50 per light to customer James Montgomery. James Montgomery paid using his Fund Max credit card. Fund Max charges Forest Furniture a 2.4% usage fee based on the total sale per transaction. The cost for this sale is $29 per light. Oct. 12 Draw Plus made a cash payment in full to Forest Furniture for the transaction from Oct 3, less any usage fees. Oct. 15 Fund Max made a cash payment of 25% of the total due to…
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 102,000 $ 51,000 $ 153,000 Variable expenses 25,480 5,120 30,600 Contribution margin $ 76,520 $ 45,880 122,400 Fixed expenses 88,080 Net operating income $ 34,320 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Boston Home Center (BHC) offers customers the use of a truck at $64 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage: Cost Driver Rate Cost Driver Volume Resources used Operation $ 0.55 per mile 46,200 miles Administration 25.00 per trip 1,874 trips Resources supplied Operation $ 35,400 Administration $ 62,400 Sales revenue totaled $80,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a traditional income statement. Traditional Income Statement Sales revenue Operation costs Administration costs Operating profit Activity-Based Income Statement Resources Used Unused Resource Capacity…
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 104,000 $ 52,000 $ 156,000 Variable expenses 25,960 5,240 31,200 Contribution margin $ 78,040 $ 46,760 124,800 Fixed expenses 89,760 Net operating income $ 35,040 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. REQUIRED 1 Overall CM ratio % Required 2 Overall break-even point ....... Required 3 see doc attached.
Please help me
Shown below is a segmented income statement for Mullett Marina’s three main boating service lines: WinterStorage Boat Fuel &Concessions BoatMaintenance Total Sales revenue $4,000,000 $1,000,000 $5,000,000 $10,000,000 Less: Variable expenses 2,000,000 200,000 4,900,000 7,100,000 Contribution margin $2,000,000 $ 800,000 $ 100,000 $2,900,000 Less direct fixed expenses: Garage/warehouse rent 700,000 55,000 350,000 1,105,000 Supervision 50,000 70,000 150,000 270,000 Equipment depreciation 250,000 75,000 100,000 425,000 Segment margin $1,000,000 $ 600,000 $ (500,000) $1,100,000 Relevant fixed costs associated with this line include 60% of Boat Maintenance’s garage/warehouse rent and 50% of Boat Maintenance’s supervision salaries. In addition, assume that dropping the Boat Maintenance service line would reduce sales of the Winter Storage line by 20% and sales of the Boat Fuel & Concessions line by 10%. All other information remains…
Shown below is a segmented income statement for Mullett Marina’s three main boating service lines: WinterStorage Boat Fuel &Concessions BoatMaintenance Total Sales revenue $4,000,000 $1,000,000 $5,000,000 $10,000,000 Less: Variable expenses 2,000,000 200,000 4,900,000 7,100,000 Contribution margin $2,000,000 $ 800,000 $ 100,000 $2,900,000 Less direct fixed expenses: Garage/warehouse rent 700,000 55,000 350,000 1,105,000 Supervision 50,000 70,000 150,000 270,000 Equipment depreciation 250,000 75,000 100,000 425,000 Segment margin $1,000,000 $ 600,000 $ (500,000) $1,100,000 Relevant fixed costs associated with this line include 60% of Boat Maintenance’s garage/warehouse rent and 50% of Boat Maintenance’s supervision salaries. In addition, assume that dropping the Boat Maintenance service line would reduce sales of the Winter Storage line by 20% and sales of the Boat Fuel & Concessions line by 10%. All other information remains…
Shown below is a segmented income statement for Mullett Marina’s three main boating service lines: WinterStorage Boat Fuel &Concessions BoatMaintenance Total Sales revenue $4,000,000 $1,000,000 $5,000,000 $10,000,000 Less: Variable expenses 2,000,000 200,000 4,900,000 7,100,000 Contribution margin $2,000,000 $ 800,000 $ 100,000 $2,900,000 Less direct fixed expenses: Garage/warehouse rent 700,000 55,000 350,000 1,105,000 Supervision 50,000 70,000 150,000 270,000 Equipment depreciation 250,000 75,000 100,000 425,000 Segment margin $1,000,000 $ 600,000 $ (500,000) $1,100,000 Mullett’s management is deciding whether to keep or drop the Boat Maintenance service line. Mullett’s Boat Maintenance service line has a contribution margin of $100,000 (sales of $5,000,000 less total variable costs of $4,900,000). All variable costs are relevant. Relevant fixed costs associated with this line include 60% of Boat Maintenance’s garage/warehouse…
Please provide answer in text (Without image) and show calculation