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 Prepare: The contribution margin by state report for Company TS.

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Answer 1

Question

Chapter 20, Problem 20.5CP

(1)

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 Prepare: The contribution margin by state report for Company TS.

(2)

To determine

The additional profit for each state, if the sales amount increased by 20% and decrease in advertising expenses.

(3)

To determine

To Identify: Which state will provide the greatest profit return for a $42,200 increasing in advertising expenses?

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Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…

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Answer 2

Question

Chapter 20, Problem 20.5CP

(1)

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 Prepare: The contribution margin by state report for Company TS.

(2)

To determine

The additional profit for each state, if the sales amount increased by 20% and decrease in advertising expenses.

(3)

To determine

To Identify: Which state will provide the greatest profit return for a $42,200 increasing in advertising expenses?

Expert Solution & Answer

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Answer 3

Question

Chapter 20, Problem 20.5CP

(1)

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 Prepare: The contribution margin by state report for Company TS.

(2)

To determine

The additional profit for each state, if the sales amount increased by 20% and decrease in advertising expenses.

(3)

To determine

To Identify: Which state will provide the greatest profit return for a $42,200 increasing in advertising expenses?

Expert Solution & Answer

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Answer 4

Question

Chapter 20, Problem 20.5CP

(1)

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 Prepare: The contribution margin by state report for Company TS.

(2)

To determine

The additional profit for each state, if the sales amount increased by 20% and decrease in advertising expenses.

(3)

To determine

To Identify: Which state will provide the greatest profit return for a $42,200 increasing in advertising expenses?

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 20, Problem 20.5CP

(1)

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 Prepare: The contribution margin by state report for Company TS.

(2)

To determine

The additional profit for each state, if the sales amount increased by 20% and decrease in advertising expenses.

(3)

To determine

To Identify: Which state will provide the greatest profit return for a $42,200 increasing in advertising expenses?

Answer 6

Chapter 20, Problem 20.5CP

(1)

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 Prepare: The contribution margin by state report for Company TS.

Answer 7

Chapter 20, Problem 20.5CP

(1)

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 Prepare: The contribution margin by state report for Company TS.

Answer 8

(2)

To determine

The additional profit for each state, if the sales amount increased by 20% and decrease in advertising expenses.

Answer 9

(2)

To determine

The additional profit for each state, if the sales amount increased by 20% and decrease in advertising expenses.

Answer 10

(3)

To determine

To Identify: Which state will provide the greatest profit return for a $42,200 increasing in advertising expenses?

Answer 11

(3)

To determine

To Identify: Which state will provide the greatest profit return for a $42,200 increasing in advertising expenses?

Answer 12

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Answer 14

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Answer 15

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Solution Summary: The author explains that contribution margin is the excess of manufacturing margin above selling and administrative expenses.

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The additional profit for each state, if the sales amount increased by 20% and decrease in advertising expenses.

To Identify: Which state will provide the greatest profit return for a $42,200 increasing in advertising expenses?

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Chapter 20 Solutions