Travis Company reports the following for its single product. Travis produced and sold 34,000 units this year.Direct materialsDirect laborVariable overheadFixed overheadVariable selling and administrative expensesFixed selling and administrative expensesSales priceCompute contribution margin for the company under variable costing.Multiple Choice$2,346,000$2,618,000$6,596,000$44 per unit$ 50 per unit$ 23 per unit$ 134,000 per year$8 per unityear$ 194 per unit$ 209,600 per Fixed overneadVariable selling and administrative expensesFixed selling and administrative expensesSales priceCompute contribution margin for the company under variable costing.Multiple ChoiceOO$2,346,000$2,618,000$6,596,000$4,656,000$4,446,400$ 134,000 per year$ 8 per unit$ 209,600 per year$ 194 per unit

Contribution margin is the amount of profit after deducting the variable expenses from the sales.…

Travis Company reports the following for its single product. Travis produced and sold 34,000 units this year. $ 44 per unit $50 per unit $ 23 per unit $ 134,000 per year $8 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Compute contribution margin for the company under variable costing. Multiple Choice $2,346,000 $2,618,000 $6,596,000 $ 209,600 per year $ 194 per unit.

Travis Company reports the following for its single product. Travis produced and sold 34,000 units this year. $ 44 per unit $50 per unit $ 23 per unit $ 134,000 per year $8 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Compute contribution margin for the company under variable costing. Multiple Choice $2,346,000 $2,618,000 $6,596,000 $ 209,600 per year $ 194 per unit.

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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A company produced and sold 3,400 units of its only product this year. The sales price is $162 per unit. Fixed costs include overhead of $85,000 per year, and selling and administrative expenses of $68,000 per year. Variable costs per unit follow. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Use variable costing to compute contribution margin. Variable expenses Contribution Margin (Variable Costing) $ 28 per unit $ 30 per unit $5 per unit 34 per unit
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Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 69 Direct labor $ 50 Variable manufacturing overhead $ 12 Sales commission $ 8 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company's contribution margin? Multiple Choice • $549,000 • $423,000 • $351,000 • $621,000
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Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Per Unit $ 200 $ 72 $ 50 $ 10 $8 Multiple Choice $ 287,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $28,700. The absorption costing net operating income will be lower than the variable costing net operating income by $100,700. Per Year The absorption costing net operating income will be higher than the variable costing net operating income by $28,700.
Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 54,000 units and sold 49,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 22 $ 12 $3 $5 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce…
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Markson Company had the following results of operations for the past year: Contribution margin income statement Per Unit Annual Total Sales (9,000 units) $ 20.00 $ 180,000 Variable costs Direct materials 4.25 38,250 Direct labor 6.00 54,000 Overhead 2.00 18,000 Contribution margin 7.75 69,750 Fixed costs Fixed overhead 4.25 38,250 Income $ 3.50 $ 31,500 A foreign company offers to buy 2,500 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $2,000 for the purchase of special tools. Markson’s annual productive capacity is 13,500 units. If Markson accepts this additional business, its profits will:
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