Help Vicious Cycle, Inc., produces and sells 2,000 bikes.$4,000Selling price per unitVariable cost per unit$800Annual fixed cost$500,000What is the company's contribution margin per unit? (Round to the nearest cent.)

Contribution margin: Difference between the sales and the variable costs is called contribution…

Vicious Cycle, Inc., produces and sells 2,000 bikes. Selling price per unit Variable cost per unit $4,000 $800 Annual fixed cost $500,000 What is the company's contribution margin per unit? (Round to the nearest cent.)

Vicious Cycle, Inc., produces and sells 2,000 bikes. Selling price per unit Variable cost per unit $4,000 $800 Annual fixed cost $500,000 What is the company's contribution margin per unit? (Round to the nearest cent.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

See similar textbooks

Related questions

Q: Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To…

A: Ans. Whenever an entity is acquiring the target entity, the assets would be taken in fair value of…

Q: Use the following to answer the next 2 questions: The following refers to a purchase of a machine by…

A: Journal entry: It is the duty of the accountant to record business economic and non-economic…

Q: Use the following information to answer the next 2 questions: On January 1, 2020, Aggie Company…

A: Present value interest factor of an annuity (PVIAF) is used for calculation of present value of a…

Q: Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a…

Q: 3. Time Value of Money Assume that ten years from now, you will need $10,000 and that your bank…

A: The concept of the time value of money states that money today has more value than the same amount…

Q: Information from Pascua Company for the year ended December 31, 2020: Units sold 60,000 Units…

A: Cost Accounting - "A systematic set of methods for recording and reporting measures of the cost of…

Q: Required: a. Prepare a statement of LLC liquidation. b. Provide the journal entry for the final cash…

A: Given Information: Lester Capital = $48,630 Torres Capital = $65,630 Hearst Capital = $26,190…

Q: The provisions of a will currently undergoing probate are: "Two thousand shares of Dorn stock to my…

A: The working and the answer is given below :

Q: Swifty Co. uses a periodic inventory system. Its records show the following for the month of May, in…

A: First-in First-Out Method - Under the First-in First-Out Method a company uses inventory in the…

Q: An accountant wishes to find the present value of an annuity of $1 payable at the beginning of each…

A: The value of money today is not the same as the value of money in the future. For example, the value…

Q: Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To…

A: When an entity called parent entity acquired more than 50 percent shares of another company,then…

Q: Culver Corporation issues $450,000 of 8% bonds, due in 9 years, with interest payable semiannually.…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Assume you can lease an item you need for a project for GH¢950/day. To purchase the item, the cost…

A: Here in this question, we are required to calculate make or buy decision. In this type of decision…

Q: Question 8 At January 1, 2020, Sandhill Company had plan assets of $283,600 and a projected benefit…

A: Pension worksheet is prepared to record all expenses and benefits related to pension of an…

Q: HELP ASAP (

A: To address this problem effectively, it's crucial to comprehend the cost allocation process within…

Q: Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To…

A: The answer for the multiple choice question and relevant working are presented hereunder : Under the…

Q: Problem # 1 Assume the following for Sam Corporation: 2018 $ 20,000 30% 2019 $ 30,000 2020 (current…

A: Carry loss back and forward: Federal tax laws provide tax payers with an option to carry back the…

Q: Ultra Petroleum (UPL) has earnings per share of $1.56 and a P/E ratio of 32.48. What's the stock…

A: The provided information are: Earning per share = $1.56 P/E ratio = 32.48

Q: Sarasota Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make…

A: Sinking Fund refers to amount which is set aside from profits to meet future known liability. It…

Q: 2. A company determines that the maximum they should pay for a new machine is $46,679. The company…

A: cost of new machinery = $46,679 net cash flow for 7 years= $8,000 per year interest rate = 5%…

Q: Interview someone who borrowed from the bank, know how much is the rate pplied to the loan, term of…

A: A loan is made if, in return for the payment of both the principal and interest, you obtain cash or…

Q: orepare a statement of cash flows. Use the indirect method of reporting cash flows from operating…

A: Solution: Statement of cash flows for year 2 is as under:

Q: $20,000. $60,000. $110,000. $120,000. $230,000.

A: In the goodwill method, the fair value of the firm is determined. The fair value is compared to the…

Q: The provisions of a will currently undergoing probate are: "One thousand shares of Wal-mart stock to…

A: The working and the answer is given below

Q: The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity's assets,…

A: Since you have asked a question with multiple subparts, we will solve the first three subparts for…

Q: Direction: Solve the problem involving buying and selling of products. Show all your solutions.…

A: Break even shows that the total fixed cost of the entity equal to the Contribution which it earned…

Q: During the last ten minutes of trading, call options on Commart Inc. common stock have risen from…

A: The provided information are: Initial value of the call option (C0) = $1.20 New value of the call…

Q: When an estate does not have sufficient assets to satisfy all claims against it, what claim has the…

A: When there aren't enough assets to pay out every claim against an estate, the subject of claims'…

Q: 14. A 90-day government bill was bought by an investor for a price of K95 per K100 nom- inal. After…

A: Solution:- Given, Annual effective rate of Return formula = (Selling price/Buying price)^(1/n)-1…

Q: On January 1 of the current year, Stuart borrows $150,000, pledging the assets of his business as…

A: Interest expense has been classified into different categories for tax purpose: Active Trade…

Q: Jewel Company, as lessee, enters into a lease agreement on January 1, 2020, to lease equipment. The…

A: Given: Fair value of lease = $34,500 Lease period = 3years Implicit rate = 5%

Q: 7. Options A. How does the price of a call option respond to the following changes, other things…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: a. What was the deareciation for the first year? Round your intermediate calculations to 4 decimal…

A: Double Declining balance of depreciation is an accelerated depreciation method that has higher…

Q: Consider the following repricing buckets: Repricing Bucket 1 day 1 day to 3 months 3 to 6 months 6…

A: Interest income is the money or income made from interest payments made on loans, bonds, savings…

Q: uestion 41 The following account balances were available for the Perry, Quincy, and Renquist…

A: Partnership is the relation between two or more person, it has the following characteristics They…

Q: An analysis of a company's estimated liability account revealed the following information: Sales of…

A: The warranty expense refers to the cost expected to be incurred for repair or replacement after the…

Q: Shamrock Company has five employees participating in its defined benefit pension plan. Expected…

A: Calculation of no. of Service Years: Year Jim Paul Nancy Dave Kathy Total 2020 1 1 1 1 1 5…

Q: Carla Company recently signed a lease for a new office building, for a lease period of 12 years.…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: periods at 12% is 1.76234. The future value of an ordinary annuity for five periods at 12% is…

A: Solution: Sometimes recurring payments or receipts, and the ongoing payments or receipts such as…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

100%

Help

Vicious Cycle, Inc., produces and sells 2,000 bikes.
$4,000
Selling price per unit
Variable cost per unit
$800
Annual fixed cost
$500,000
What is the company's contribution margin per unit? (Round to the nearest cent.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
Vicious Cycle, Inc., produces and sells 2,000 bikes. Selling price per unit $2,000 Variable cost per unit $800 Annual fixed cost $500,000 What is the company's contribution margin per unit? (Round to the nearest cent.)
Sabrina Inc. sells table for $110. The unit variable cost per table is $85. Fixed costs total $475,000. Required: a What is the contribution margin per table? b. What is the breakeven point in table? C. How many table must be sold to earn a pretax income of $450 000? d. What is the margin of safety, assuming 33 000 tires are sold?
Sheridan Recreation Products sells the Amazing Foam Frisbee for $19. The variable cost per unit is $6; fixed costs are $26,000 per month. (a) Your Answer Correct Answer Your answer is correct. What is the breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round answers to O decimal places, eg. 5,275) The breakeven point The breakeven sales (b) eTextbook and Media Solution $ eTextbook and Media Save for Later 2000 frisbees 38000 How many frisbees must Sheridan sell to earn $39,000 in monthly operating income? (Round answer to O decimal places, eg. 5,275) frisbees Attempts: unlimited Attempts: unlimited Submit Ar (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.
Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are as follows: direct materials = $15; direct labour = $7; variable overhead = $3; sales commission is 5% of price. Its fixed monthly costs are $50,000. Required: 1. Using the above cost data, set up a monthly cost equation. Y=___+___x 2. What is the company’s contribution margin percentage? (Round your answer to 2 decimal places.) Contribution Margin %
Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each headphone sells for $315 per unit and has variable costs of $225 per unit. Next year XYZ Company wishes to earn an operating income that equals 90% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest number) Select one: O a. 2,364 O b. 1,244 O c. 394 O d. 124 O e. 207
Jackson, Ltd. produces a bicycle pump. The sales price per unit is $18.98. Fixed costs are $84 000. The variable cost per unit is $11.98. Find the profit on sales of 15000 units.
Subject-account
Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are P60 per unit, and fixed costs total P1,800,000 annually. The company estimates that sales will increase by P450,000 during the coming year due to increased demand. Required: By how much should net income increase?
Can you help me with CVP Drill #14?
Steps Inc sells step aerobic class equipment. The equipment sells for $15 / unit. The variable cost is $10 per unit and fixed costs are $1,750,000. What are number of units the company must sell if the company wants to achieve a target profit of $400,000
Indiana Bones, Inc., produces and sells 2,000 units of a single product, a deluxe dog house: Selling price per unit: $3,000 Variable cost per unit: $1,000 Annual fixed cost: $500,000 What is the company's breakeven point in sales dollars? Round your answer to the nearest whole dollar.