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...

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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format incomestatement for a recent month for the two games appears below:Claimjumper Makeover TotalSales ............................................ $30,000 $70,000 $100,000Variable expenses ...................... 20,000 50,000 70,000Contribution margin ..................... $10,000 $20,000 30,000Fixed expenses .......................... 24,000Net operating income .................. $ 6,000Required:1. Compute the overall contribution margin (CM) ratio for the company.2. Compute the overall break-even point for the company in sales dollars.3. Verify the overall break-even point for the company by constructing a contribution format incomestatement showing the appropriate levels of sales for the two products.
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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…
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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 106,000 26,440 $ 79,560 Makeover $ 53,000 5,360 $ 47,640 Total $ 159,000 31,800 127,200 94,080 $ 33,120 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.
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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Claimjumper Makeover $ 112,000 $ 56,000 34,600 7,400 $ 77,400 $ 48,600 Total $ 168,000 42,000 126,000 88,425 $ 37,575 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.
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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.