(A) Concept Introduction: Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as: Contribution Margin Ratio = Contribution Margin/ Revenue. Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero. The selling price of the new product if the average contribution margin ratio is not changed.

Question

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Answer 1

Question

Chapter 12, Problem 12.14E

To determine

(A)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The selling price of the new product if the average contribution margin ratio is not changed.

To determine

(B)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The number of units required to be sold at break even point if fixed cost is added by $30600.

To determine

(C)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

The total operating income if 20000 new product units are sold at $13.75 per unit.

Requirement 2:

To determine

The average contribution margin ratio if 20000 new product units are sold at $13.75 per unit.

To determine

(D)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

Operating Income of existing product

Requirement 2:

To determine

The complications, if some volume from existing product is added to new product.

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Please provide problem with accounting question

Brightstar Industries began the year with stockholders' equity of $400,000. During the year, the company recorded revenues of $600,000 and expenses of $420,000, and paid dividends of $40,000. What was Brightstar Industries' stockholders' equity at the end of the year?

Answer 2

Question

Chapter 12, Problem 12.14E

To determine

(A)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The selling price of the new product if the average contribution margin ratio is not changed.

To determine

(B)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The number of units required to be sold at break even point if fixed cost is added by $30600.

To determine

(C)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

The total operating income if 20000 new product units are sold at $13.75 per unit.

Requirement 2:

To determine

The average contribution margin ratio if 20000 new product units are sold at $13.75 per unit.

To determine

(D)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

Operating Income of existing product

Requirement 2:

To determine

The complications, if some volume from existing product is added to new product.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12.14E

To determine

(A)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The selling price of the new product if the average contribution margin ratio is not changed.

To determine

(B)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The number of units required to be sold at break even point if fixed cost is added by $30600.

To determine

(C)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

The total operating income if 20000 new product units are sold at $13.75 per unit.

Requirement 2:

To determine

The average contribution margin ratio if 20000 new product units are sold at $13.75 per unit.

To determine

(D)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

Operating Income of existing product

Requirement 2:

To determine

The complications, if some volume from existing product is added to new product.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 12.14E

To determine

(A)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The selling price of the new product if the average contribution margin ratio is not changed.

To determine

(B)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The number of units required to be sold at break even point if fixed cost is added by $30600.

To determine

(C)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

The total operating income if 20000 new product units are sold at $13.75 per unit.

Requirement 2:

To determine

The average contribution margin ratio if 20000 new product units are sold at $13.75 per unit.

To determine

(D)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

Operating Income of existing product

Requirement 2:

To determine

The complications, if some volume from existing product is added to new product.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 12.14E

To determine

(A)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The selling price of the new product if the average contribution margin ratio is not changed.

To determine

(B)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The number of units required to be sold at break even point if fixed cost is added by $30600.

To determine

(C)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

The total operating income if 20000 new product units are sold at $13.75 per unit.

Requirement 2:

To determine

The average contribution margin ratio if 20000 new product units are sold at $13.75 per unit.

To determine

(D)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

Operating Income of existing product

Requirement 2:

To determine

The complications, if some volume from existing product is added to new product.

Answer 6

Chapter 12, Problem 12.14E

To determine

(A)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The selling price of the new product if the average contribution margin ratio is not changed.

Answer 7

Chapter 12, Problem 12.14E

To determine

(A)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The selling price of the new product if the average contribution margin ratio is not changed.

Answer 8

To determine

(B)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The number of units required to be sold at break even point if fixed cost is added by $30600.

Answer 9

To determine

(B)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

The number of units required to be sold at break even point if fixed cost is added by $30600.

Answer 10

To determine

(C)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

The total operating income if 20000 new product units are sold at $13.75 per unit.

Answer 11

To determine

(C)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

The total operating income if 20000 new product units are sold at $13.75 per unit.

Answer 12

Requirement 2:

To determine

The average contribution margin ratio if 20000 new product units are sold at $13.75 per unit.

Answer 13

Requirement 2:

To determine

The average contribution margin ratio if 20000 new product units are sold at $13.75 per unit.

Answer 14

To determine

(D)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

Operating Income of existing product

Answer 15

To determine

(D)

Concept Introduction:

Contribution margin ratio is defined as the portion of each sales dollar which is left after all variable costs are incurred and the amount is available to cover fixed cost to generate profits. It calculates change in contribution margin margin for every change in revenue. It is calculated as:

Contribution Margin Ratio = Contribution Margin/ Revenue.

Break Even Point is the amount of revenue realized where the firm will have neither profit nor loss. In other words, break even point is where operating profit is equal to zero.

Requirement 1:

Operating Income of existing product

Answer 16

Requirement 2:

To determine

The complications, if some volume from existing product is added to new product.

Answer 17

Requirement 2:

To determine

The complications, if some volume from existing product is added to new product.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

Ch. 12 - Prob. 12.1ME Ch. 12 - Prob. 12.2ME Ch. 12 - Prob. 12.3ME Ch. 12 - Prob. 12.4ME Ch. 12 - Prob. 12.5ME Ch. 12 - Prob. 12.6ME Ch. 12 - Exercise 12.7 LO 3 Cost classifications For each...Ch. 12 - Exercise 12.8 LO 3 Cost classifications For each...Ch. 12 - Prob. 12.9E Ch. 12 - Prob. 12.10E

The average contribution margin ratio if 20000 new product units are sold at $13.75 per unit.

The complications, if some volume from existing product is added to new product.

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Chapter 12 Solutions