Contribution Margin Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin. To Determine: The contribution margin and contribution margin ratio for each segment of Incorporation TW.

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Answer 1

Question

Chapter 20, Problem 20.16EX

(a)

To determine

Contribution Margin

Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin.

To Determine: The contribution margin and contribution margin ratio for each segment of Incorporation TW.

(b)

To determine

To Describe: The contribution margin ratio for the publishing department is smaller than compared to the other segments.

(c)

To determine

To Identify: Does your answer to (b) mean that the other segments are more profitable businesses than the publishing department.

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

quesrion 2

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Answer 2

Question

Chapter 20, Problem 20.16EX

(a)

To determine

Contribution Margin

Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin.

To Determine: The contribution margin and contribution margin ratio for each segment of Incorporation TW.

(b)

To determine

To Describe: The contribution margin ratio for the publishing department is smaller than compared to the other segments.

(c)

To determine

To Identify: Does your answer to (b) mean that the other segments are more profitable businesses than the publishing department.

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Answer 3

Question

Chapter 20, Problem 20.16EX

(a)

To determine

Contribution Margin

Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin.

To Determine: The contribution margin and contribution margin ratio for each segment of Incorporation TW.

(b)

To determine

To Describe: The contribution margin ratio for the publishing department is smaller than compared to the other segments.

(c)

To determine

To Identify: Does your answer to (b) mean that the other segments are more profitable businesses than the publishing department.

Expert Solution & Answer

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Answer 4

Question

Chapter 20, Problem 20.16EX

(a)

To determine

Contribution Margin

Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin.

To Determine: The contribution margin and contribution margin ratio for each segment of Incorporation TW.

(b)

To determine

To Describe: The contribution margin ratio for the publishing department is smaller than compared to the other segments.

(c)

To determine

To Identify: Does your answer to (b) mean that the other segments are more profitable businesses than the publishing department.

Expert Solution & Answer

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Answer 5

Chapter 20, Problem 20.16EX

(a)

To determine

Contribution Margin

Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin.

To Determine: The contribution margin and contribution margin ratio for each segment of Incorporation TW.

(b)

To determine

To Describe: The contribution margin ratio for the publishing department is smaller than compared to the other segments.

(c)

To determine

To Identify: Does your answer to (b) mean that the other segments are more profitable businesses than the publishing department.

Answer 6

Chapter 20, Problem 20.16EX

(a)

To determine

Contribution Margin

Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin.

To Determine: The contribution margin and contribution margin ratio for each segment of Incorporation TW.

Answer 7

Chapter 20, Problem 20.16EX

(a)

To determine

Contribution Margin

Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin.

To Determine: The contribution margin and contribution margin ratio for each segment of Incorporation TW.

Answer 8

(b)

To determine

To Describe: The contribution margin ratio for the publishing department is smaller than compared to the other segments.

Answer 9

(b)

To determine

To Describe: The contribution margin ratio for the publishing department is smaller than compared to the other segments.

Answer 10

(c)

To determine

To Identify: Does your answer to (b) mean that the other segments are more profitable businesses than the publishing department.

Answer 11

(c)

To determine

To Identify: Does your answer to (b) mean that the other segments are more profitable businesses than the publishing department.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author calculates the contribution margin for each segment of Incorporation TW by deducting variable cost from sales or selling and administrative expenses.

To Describe: The contribution margin ratio for the publishing department is smaller than compared to the other segments.

To Identify: Does your answer to (b) mean that the other segments are more profitable businesses than the publishing department.

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