3. What if the per unit selling expense increased from $0.95 to $2.05? Calculate new values for the following:Round dollar amounts to the nearest cent and round ratio values to four decimal places (express the ratio as a decimal rather than a percentage):a. Variable product cost per unitb. Total variable cost per unitc. Contribution margin per unitd. Contribution margin ratioe. Total fixed expense for the year00000$ 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.

A variable cost is a kind of business expenditure that varies depending on the volume of goods or…

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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Subject: Finance
Dartmount Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (2,900 units) $ 275,500 Variable costs 116,000 Contribution margin 159,500 Fixed costs 136,100 Operating profit $ 23,400 If the company sells 3,200 units, its total contribution margin should be closest to:
Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 180,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 150,000 per month How many units must Lamar produce and sell in order to break-even?
ces Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Sales CM ratio Fixed expenses total $183,750 per month. Flight Dynamic $ 150,000 Required 1 Product Required 2 Required 3 80% Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? Break-even point in dollar sales Sure Shot $ 250,000 36% Complete this question by entering your answers in the tabs below. Total $ 400.000 > What is the company's break-even point in dollar sales based on the current sales mix? Note: Do not round intermediate calculations.
Data concerning Wislocki Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit Percent of Change in net operating income 25% Fixed expenses are $1,051,000 per month. The company is currently selling 9,700 units per month. Required: The marketing manager would like to introduce sales commissions as an Incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $103,000 per month. The marketing manager predicts that Introducing this sales Incentive would Increase monthly sales by 470 units. What should be the overall effect on the company's monthly net operating Income of this change?
The Glass menagerie makes small pressed resin ducks and ducklings. For every duck sold, the company sells five ducklings. The following information is available about the company’s selling prices and cost: Ducks Duckling Selling price Rs. 24 Rs. 12 Variable cost 12 8 Annual fixed cost Rs. 288,000 Required: a. What is average contribution margin ratio? b. Calculate the monthly break-even point if fixed cost is incurred evenly throughout the year. At the BEP, indicate how many units of each product will be sold monthly. c. If the company wants to earn Rs. 96,000 pre-tax profit monthly, how many units of each products must it sell? d. Company management has specified Rs. 31,680 as monthly net income, and the company is in a 40 percent tax bracket. However, marketing information has indicated that the sales mix has changed to one duck to nine ducklings. How much total revenge and what number of products must be sold to achieve the company’s profit objective? e. Refer to the original…
solve all the requirements
Fruity Pebbles Apparel sells fruit themed shirts at $58.00 per shirt. It incurs monthly fixed costs of $6000. The contribution margin ratio is calculated to be 10%. What is the variable cost per shirt? (Round any intermediate calculations and your final answer to two decimal places.) O$52.20 per shirt O $63.80 per shirt O $58.00 per shirt O $5.80 pcr shirt Next •Previous
Maestro Co. employs a salesperson whose salary is $2,000 per month. Once the monthly sales exceed $40,000, the salesperson receives the commission of 5% of the sales made. Which of the following Cost Behavior Patterns describe the salesperson’s salary the most? Question 7Select one: a. Variable costs b. Fixed costs c. Semivariable costs d. Step costs
How many units would have to be sold each month to attain a target profit of 35,400
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 $57,600 38,400 $ 19, 200 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 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Sales Variable expenses Contribution margin Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Engberg Company Contribution Income…
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.)

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