Solve this financial Accounting problem Wilson Athletics plans to sell 4,800 tennis rackets at$95 each in the coming year. The unit variable cost is$57.50 (includes direct materials, direct labor, variablefactory overhead, and variable selling expense). Fixedfactory overhead is $28,500, and fixed selling andadministrative expenses are $39,200.I. Calculate the variable cost ratio.2. Calculate the contribution margin ratio.

Explanation of Variable Cost Ratio:The variable cost ratio measures the proportion of sales revenue…

Answered: Wilson Athletics plans to sell 4,800…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

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Chapter3: Cost-volume-profit Analysis

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Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Calculate variablecost and contribution margin ration ? Financial accounting
Colton Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $50,000. Determine the company’s current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.)
Natasha Industries has a product with a selling price per unit of $136, the unit variable cost is $46, and the total monthly fixed costs are $300,000. How much is Natasha's contribution margin ratio? Provide Answer
A company expects to sell 75,000 widgets at a price of $10.00. The unit variable costs are estimated at $8.00, and the fixed costs are estimated at $125,000. On the basis of this information, calculate the following: 1. Contribution margin 2. PV ratio 3. Revenue break-even by using the PV ratio 4. Profit generated
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Current operating income for Bay Area Cycles Company is $46,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $184,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $115,000? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Fixed expense Operating income Per Unit Volume $ 100.00 Total Ratio 100 % + % 25 % (184,000) 46,000
Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products: X Y Selling price per unit $40 $25 Variable cost per unit 25 15 Total fixed costs are $275,000.Required:a. Calculate the contribution margin for each product.b. Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.c. Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.
Natasha Industries has a product with a selling price per unit of $136, the unit variable cost is $46, and the total monthly fixed costs are $300,000. How much is Natasha contribution margin ratio?
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Refer to the list below for the exact wording of an amount description within your income statement. Amount Descriptions Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost Calculate the total variable cost per unit. Variable cost per unit Calculate the total fixed expense for the year. Total fixed expense for the year Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct labor per helmet 8 Variable factory overhead per helmet 4 Total fixed factory overhead 20,000 Variable selling expense is a commission of $3 per helmet; fixed selling and administrative expense totals $29,500. Required: 1. Calculate the total variable cost per unit. 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin income statement for Head-First Company for the…

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