1. Calculate the following values:Round dollar amounts to the nearest cent and round ratio values to three decimal places (express the ratio as a decimal rather than a percentage).a. Variable product cost per unitb. Total variable cost per unitc. Contribution margin per unitd. Contribution margin ratioe. Total fixed expense for the year$$$$ Variable Costs, Contribution Margin, Contribution Margin RatioSuper-Tees Company plans to sell 20,000 T-shirts at $19 each in the coming year. Product costs include:Direct materials per T-shirt$6.65$1.33Direct labor per T-shirtVariable overhead per T-shirt$0.57Total fixed factory overhead$43,000Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $13,000.

ANSWER Variable product cost per unit=Direct material cost per unit+ Direct labor cost per unit+…

Answered: Variable Costs, Contribution Margin,…

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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Cartier Corporation currently sells its products for $50 per unit. The company’s variable costs are $20 per unit. Fixed expenses amount to a total of $5,000 per month. What is the company’s contribution margin ratio? multiple choice 1 40% 60% 100% 20%
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 10.00 $ 3.00 $ 133,000 Greengrow $31.00 $11.00 $ 35,000 Last year the company produced and sold 41,500 units of Weedban and 24,500 units of Greengrow. Its annual common fixed expenses are $105,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
Campbell company incurs annual fixed costs of $65,400 variable costs for Campbell's product are $32.00 per unit, and the sales price is $50.00 per unit. Campbell desires to earn an annual profit of $48,000. Required Use the per-unit contribution margin approach to determine the sale volume in units and dollars required to earn the desired profit. Sales in dollars Sales Volume in units
Based on the following information, what is the total contribution margin for Scrapyard Pizza? Pizzas sold during the period 80,000 Selling price per pizza $14.00 Variable cost per pizza: Production $6.00 Selling & administrative 3.00 Fixed Costs: Production $100,000 per year Selling & administrative 20,000 per year
2Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 15%. Prepare a projected contribution margin income statement for Markham Farms assuming it purchases the new equipment. Assume sales level remains unchanged.
Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $8.12 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $245,650 per year. Administrative cost (all fixed) totals $297,606. Comer expects to sell 225,000 strings of lights next year. Required: 1. Calculate the break-even point in units.fill in the blank 1 units 2. Calculate the margin of safety in units.fill in the blank 2 units 3. Calculate the margin of safety in dollars.$fill in the blank 3 4. Conceptual Connection: Suppose Comer actually experiences a price decrease next year, while all other costs and the number of units sold remain the same. Would this increase or decrease risk for the company? (Hint: Consider what would happen to the number of break-even units and to the margin of safety.)
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 120,000 units of antibiotic at an average price of $25 each in the coming year. Total variable costs equal $960,000. Total fixed costs equal $7,200,000. Required: 1. What is the contribution margin per unit? Round your answer to the nearest cent. What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.) fill in the blank 2 2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar. 3. Calculate the sales revenue needed to achieve a target profit of $205,000. Round your answer to the nearest dollar. 4. What if the average price per unit increased to $26.50? Recalculate the following: a. Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a…
Contribution Margin, CVP, Net Income, Margin of Safety Nail Glow, Inc., produces novelty nail polishes. Each bottle sells for $5.90. Variable unit costs are as follows: Bottle, packing material $1.15 Acrylic base $0.86 Pigments Selling commission 0.57 0.14 Other ingredients 0.43 Fixed overhead costs are $34,475 per year. Fixed selling and administrative costs are $6,720 per year. Nail Glow sold 35,000 bottles last year Required: 1. What is the contribution margin per unit for a bottle of nail polish? Round your answer to the nearest cent per unit What is the contribution margin ratio? Round your answer to four decimal places. Use the rounded value in the subsequent computations. (Express as a decimal-based amount rather than a whole percent.) 2. How many bottles must be sold to break even? bottles What is the break-even sales revenue? Round your answer to the nearest dollar, if rounding is required. Use the rounded value in the subsequent computations. $ 3. What was Nail Glow's…
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Owe

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