Large Marge, Inc. is a manufacturer of trailers for long-haul trucking companies. The company produces 2types of trailers: Retractable and Flat Beds. The information below relates to the first year of operations:Unit Sales PriceContribution Margin PercentageTraceable Fixed CostsVolume Sold (Units)Retractable$1,00060%$2,500,00010,000Flat BedsRetractable $2,220,000 Flat Beds $7,655,000Retractable $3,500,000 Flat Beds $10,375,000Retractable $1,500,000, Flat Beds $8,250,000Retractable $6,000,000, Flat Beds $14,875,000O Retractable $1,500,000, Flat Beds $1,875,000$2,50070%$4,500,0008,500Total common fixed costs were $4,000,000 and were allocated to the product lines based on their respectivepercentage of total unit sales.Based on the data above, on which amounts should the performance of the two product lines be evaluated?

The contribution margin is divided by the number of units sold to determine the contribution margin…

Answered: trucking companie es of trailers:…

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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JSON-5313 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 Selling price $ 72.00 $ 54.00 $ 62.00 Variable expenses: Direct materials 21.60 18.00 9.00 21.60 22.50 34.40 43.20 43.40 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 40.50 $13.50 $28.80 $18.60 40% 25% 30% JSON-5313 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 4,800 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-5313 can earn per month using its 4,800 pounds of direct materials optimally? O $ 10,800 O $ 13,020 O $ 23,820 O $ 26,320
Contribution margin per constraint Zion Metals Inc. has three grades of metal product, A1, B3, and E6. Financial data for the three grades are as follows: A1 B3 E6 Revenue $ 400,000 $ 578,000 $ 300,000 Variable cost $(250,000) $(380,000) $(270,000) Fixed cost (105,000) (118,800) (20,000) Total cost $(355,000) $(498,800) $(290,000) Operating income $ 45,000 $ 79,200 $ 10,000 Number of units ÷ 15,000 ÷ 16,500 ÷ 5,000 Operating income per unit $ 3.00 $ 4.80 $ 2.00 Zion Metals’ operations require all three grades to be melted in a furnace before being formed. The furnace runs 24 hours a day, 7 days a week, and is a production constraint. The furnace hours required per unit of each product are as follows: A1: 8 hours B3: 10 hours E6: 6 hours The Marketing Department is considering a new marketing and sales campaign. Which product should be emphasized in the marketing and sales…
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product A B Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses $84.00 $66.00 $74.00 25.20 18.00 9.00 25.20 31.50 42.80 50.40 49.50 51.80 Contribution margin $33.60 $16.50 $22.20 Contribution margin ratio 40% 25% 30% The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,700 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds of materials? Complete this question by entering your answers in the tabs below.…
When Isaiah Company has fixed costs of $115,440 and the contribution margin is $26, the break-even point is a. 13,020 units b. 5,870 units Oc. 8,880 units d. 4,440 units
Contribution Margin by Segment The following data are for Cabin Craft Apparel: East West Sales volume (units): Product XX 9,300 10,000 Product YY 6,100 12,900 Sales price: Product XX $18 $20 Product YY $23 $22 Variable cost per unit: Product XX $11 $11 Product YY $14 $14 a. Determine the contribution margin for Product YY.$fill in the blank 1 b. Determine the contribution margin for the West Region.$fill in the blank 2
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 62.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 80.00 24.00 24.00 48.00 $ 32.00 Required 1 Required 2 40% Required 3 18.00 25.40 43.40 $18.60 30% с $81.00 The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. 9.00 43.65 52.65 $28.35 Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? 35% Complete this question by…
CVP single product; comprehensiveBeantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual production and sales are 960,000 baseballs. Costs for each baseball are as follows:Direct material$2.00Direct labor1.25Variable overhead0.50Variable selling expenses0.25Total variable cost$4.00Total fixed overhead$1,250,000a. Calculate the unit contribution margin in dollars and the contribution margin ratio for the company.Note: Round percentage to two decimal places (for example, round 32.5555% to 32.56%).Unit contribution margin in dollars $AnswerContribution margin ratio Answer%\\n
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $86,500. Required: $ 76,600 41,400 $ 46,000 5,000 $ 123,400 52,800 $ 91,000 5,000 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. 4. Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer…
The following information is for Bullwinkle Industries Inc.: Line Item Description East West Sales volume (units): Product Alpha 45,000 38,000 Product Omega 60,000 50,000 Sales price: Product Alpha $500 $600 Product Omega $250 $225 Variable cost per unit: Product Alpha $275 $275 Product Omega $140 $140 a. Determine the contribution margin for the East Region and West Region.East Region: fill in the blank 1 of 2$West Region: fill in the blank 2 of 2$ b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.East Region: fill in the blank 1 of 2%West Region: fill in the blank 2 of 2%
Required information [The following information applies to the questions displayed below] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): $ 10,000 5,500 4,500 2,250 Sales Variable expenses Contribution margin Fixed expenses Net operating income 2,250 2. What is the contribution margin ratio? Contribution margin ratio
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 84.00 25.20 25.20 50.40 $ 33.60 40% Required 1 Required 2 Required 3 21.00 31.50 52.50 $ 17.50 25% с $ 74.00 The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Contribution margin per pound of the constraining resource Product C
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses $ 15,000 9,000 6,000 3,120 Net operating income $ 2,880 nces 8. What is the break-even point in unit sales? Break-even point units

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