The sports equipment department of Mountain Athletics Store is analyzing the performance of their tennis racket line. Manager John Davis has collected the following data: Total Sales (800 tennis rackets): $400,000 Variable Costs: $240,000 Fixed Costs: $100,000 Tax Rate: 30% Calculate: a. Contribution Margin (CM) b. Unit CM c. CM Ratio
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- Cullumber Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income (a) Net income $ (b) Shocker Net Income Tingler $300,000 $500,000 Tingler Net Income $ Total Net Income (c) Why or why not? Compute current net income for Cullumber Company. ta Net income would 151,400 148,600 $ 119,400 S $29,200 Fixed expenses consist of $298,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,800 (Shocker), and $34,300 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Shocker 197,000 303,000 229,800 $73,200 Compute net income by product line and in total for…Meargia Plastics is evaluating its plastic bottles division. The accounting manager has come up with the following data for the year: contribution margin of $570,000, controllable fixed of $228,000, and noncontrollable fixed costs of $57,000. Required: 1. What is the controllable margin? Controllable Margin 2. What is the total contribution by profit center (CPC)?Meargia Plastics is evaluating its plastic bottles division. The accounting manager has come upwith the following data for the year: contribution margin of $500,000, controllable fixed costs of$200,000, and noncontrollable fixed costs of $50,000.What is the controllable margin and total contribution by profit center (CPC)?a. Controllable margin: $200,000; CPC: $50,000b. Controllable margin: $50,000; CPC: $500,000c. Controllable margin: $250,000; CPC: 300,000d. Controllable margin: $300,000; CPC: $250,000
- Anu’s Amusement Center has collected the following data for operations for the year. Total revenues $ 2,016,000 Total fixed costs $ 694,400 Total variable costs $ 1,134,000 Total tickets sold 63,000 Required: a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? c. What is the average contribution margin per ticket? (Do not round intermediate calculations.) d. What is the break-even point? (Do not round intermediate calculations.) e. Anu has decided that unless the operation can earn at least $222,600 in operating profits, she will close it down. What number of tickets must be sold for Anu’s Amusements to make a $222,600 operating profit for the year on ticket sales? (Do not round intermediate calculations.)Refer to the list below for the exact wording of an amount description within your income statement. Amount Descriptions Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost Calculate the total variable cost per unit. Variable cost per unit Calculate the total fixed expense for the year. Total fixed expense for the year Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct labor per helmet 8 Variable factory overhead per helmet 4 Total fixed factory overhead 20,000 Variable selling expense is a commission of $3 per helmet; fixed selling and administrative expense totals $29,500. Required: 1. Calculate the total variable cost per unit. 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin income statement for Head-First Company for the…Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $15,000 for sales support should be assigned to the individual customers from the information given as follows: Multiple Choice Units purchased Purchase orders (annually) What is the amount of the sales support costs that should be allocated to Customer B, assuming Fence uses purchases orders to compute activity-based costs? $3,000 $6,000 $9,000 Customer A 200,000 $12,000 Customer B 300,000 32 8
- Thank you.Voice Com, Inc., uses the product cost method of applying the cost - plus approach to product pricing. The costs of producing and selling 5,000 units of cell phones are as follows:Voice Com desires a profit equal to a 13% rate of return on invested assets of $600, 800.a. Determine the amount of desired profit from the production and sale of 5,000 units of cell phones.Sfill in the blank 1b. Determine the product cost per unit for the production of 5,000 of cell phones. If required, round your answer to nearest dollar.Sfill in the blank 2 per unitc. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 %d. Determine the selling price of cell phones. Round to the nearest dollar.Waterman's WaterWorld Tourist Park has collected the following data for operations for the year: $ 2,000,000 $ 546,875 Total revenues Total fixed costs Total variable costs Total tickets sold $ 1,125,000 50,000 Required: a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? Note: Round your final answer to 2 decimal places. c. What is the average contribution margin per ticket? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. d. What is the break-even point? Note: Do not round intermediate calculations. e. Waterman's management has decided that unless the operation can earn at least $140,000 in operating profits, they will close it down. What number of tickets must be sold for Waterman's to make a $140,000 operating profit for the year on ticket sales? Note: Do not round intermediate calculations. a. Average selling price b. Average variable cost c. Average contribution margin d. Break-even point e.…
- Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:Windows is a small company that installs windows. Its cost structure is as follows: LOADING... (Click the icon to view the cost structure.) Traylor Windows' breakeven revenues is $1,870,000 and breakeven units is 3,400. Calculate the margin of safety in units and dollars and the margin of safety percentage if Traylor Windows expects to sell 3,600 windows in the year. Begin with calculating the margin of safety in dollars. Determine the formula to calculate the margin of safety in dollars. Then, enter the amounts and calculate the margin of safety in dollars. Budgeted revenue - Breakeven revenue = Margin of safety in dollars - = Next, determine the formula, enter the amounts, and calculate the margin of safety in units. Budgeted units - Breakeven units = Margin of safety in units - = Finally, calculate the margin of safety percentage if…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 $ 110,000 34,000 $ 76,000 Required 1 Makeover $ 55,000 7,250 $ 47,750 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 2 Required 3 Complete this question by entering your answers in the tabs below. Total $ 165,000 41, 250 123, 750 87,300 $ 36,450 What is the company's overall break-even point in dollar sales? Note: Do not round intermediate calculations. Overall break-even point