!Required information[The following information applies to the questions displayed below.]Hudson Company reports the following contribution margin income statement.HUDSON COMPANYContribution Margin Income StatementFor Year Ended December 31Sales (10,900 units at $225 each)Variable costs (10,900 units at $180 each)Contribution marginFixed costsIncomeIf the company raises its selling price to $240 per unit.1. Compute Hudson Company's contribution margin per unit.2. Compute Hudson Company's contribution margin ratio.3. Compute Hudson Company's break-even point in units.4. Compute Hudson Company's break-even point in sales dollars.1. Contribution margin2. Contribution margin ratio3. Break-even point4. Break-even sales dollars$ 2,452,5001,962,000490,500387,000$ 103,500per unit%units

The term contribution margin states the amount of revenue which is left over or remain after all the…

[The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,900 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Income $ 2,452,500 1,962,000 490,500 387,000 $ 103,500

[The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,900 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Income $ 2,452,500 1,962,000 490,500 387,000 $ 103,500

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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Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 The marketing manager believes that increasing advertising costs by $174,000 will increase the company's sales volume to 12,200 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income/Loss $ 0 $ 3,024,000 2,268,000 756,000 567,000 $ 189,000 0
Philadelphia Company has the following information for March: Sales $487,491 Variable cost of goods sold 213,248 Fixed manufacturing costs 75,006 Variable selling and administrative expenses 50,161 Fixed selling and administrating expenses 38,910 Determine the March: a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income for Philadelphia Company $fill in the blank 3
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During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 $ 900,000 555,000 345,000 294,000 $ 51,000 Sales (@$60 per unit) Cost of goods sold (@ $37 per unit) Gross margin Selling and administrative expenses* Net operating income * $3 per unit variable; $249,000 fixed each year. The company's $37 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($360,000+ 20,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Units produced Units sold Required 1 Year 1 20,000 15,000 Complete this question by entering your answers in the tabs below. Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income…
A manufacturer's contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below. Contribution Margin Income Statement Sales (12,500 units x $12 per unit) Variable costs (12,500 units x $7 per unit) Contribution margin (12,500 units x $5 per unit Fixed costs Income 1. The 12,500 units produced and sold increases to 13,000 units and fixed costs increase by $5,800. 2. Unit selling price decreases by 4% and units produced and sold increase by 8%. Hint: A unit increase has both a sales and costs impact. 3. Fixed costs increase by $20,800, variable costs per unit decrease by $2, and units produced and sold increase by 400. $ 150,000 87,500 62,500 49,000 $ 13,500 1. The 12,500 units produced and sold increases to 13,000 units and fixed costs increase by $5,800. Contribution Margin Income Statement Sales Variable costs Contribution margin Fixed costs Income (loss) Sales Variable costs Contribution margin Fixed…
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Prepare an absorption-costing income statement for last year. Round to nearest whole number.
A company has a single product. The monthly data concerning the single product follows: Item Amount Selling Price per unit $200/unit Variable expenses per unit $80/unit Total Fixed Expenses $980,000 Units produced 10,000 units Units sold 10,000 units What is the current Operating Income given the above information?
Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the following table from the data provided in the income statements. Each company sold 84,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) Unit contribution margin Break-even sales (units) Break-even sales (dollars) Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y7 1 Sales $424,000.00 2 Variable costs: 3 Manufacturing expense $254,400.00 4 Selling expense 21,200.00 5 Administrative expense 63,600.00 339,200.00 6 Contribution margin $84,800.00 7 Fixed costs: 8 Manufacturing expense $5,000.00 9 Selling expense…
Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 83,800 units during the year. Cover-to-CoverCompany Biblio FilesCompany Contribution margin ratio (percent) Unit contribution margin Break-even sales (units) Break-even sales (dollars) Review the definitions of contribution margin ratio and unit contribution margin. Also review the formulas for break-even in terms of units sold and sales dollars. Income Statement - Cover-to-Cover Cover-to-Cover CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8 Sales $419,000 Variable costs: Manufacturing expense $251,400 Selling expense 20,950 Administrative expense 62,850 (335,200) Contribution margin $83,800 Fixed costs: Manufacturing…
In the last reporting period, Global Tech Company recorded 140,000 units sold for the first time in the history of the company. The price per unit was $85.63 and variable costs per unit at $35.07. Compute the contribution margin. Next, compute the fixed costs if the operating income is $3,810,000. OA. $4,909,800; $4,528,800 OB. $7,078,400; $3,268,400 OC. $4,909,800; $5,290,800 OD. $11,988,200; $11,607,200
Darmian Corp. production for the year equaled 21 000 units and sales reached 19 000 units. Would Pearson net income be higher under: a. Variable costing system b. Absorption costing system c. Fixed costing system d. Contribution costing system