Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula : C o n t r i b u t i o n M a r g i n = S a l e s p r i c e – V a r i a b l e c o s t s Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows: B r e a k e v e n p o i n t ( U n i t s ) = T o t a l F i x e d c o s t s C o n t r i b u t i o n m a r g i n p e r u n i t B r e a k e v e n p o i n t ( D o l l a r ) = T o t a l F i x e d c o s t s C o n t r i b u t i o n m a r g i n r a t i o xs Requirement-1: To determine: Revenue and Variable costs for each show

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Answer 1

Question

Chapter 21, Problem P21.57BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$ xs

Requirement-1:

To determine: Revenue and Variable costs for each show

To determine

Requirement-2:

To determine: Breakeven number of shows per year using the equation approach

To determine

Requirement-3:

To determine: Number of shows per year to earn a profit for $4,128,000 using the Contribution margin approach

To determine

Requirement-4:

To prepare: The Contribution margin income statement for 140 shows in a year.

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Answer 2

Question

Chapter 21, Problem P21.57BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$ xs

Requirement-1:

To determine: Revenue and Variable costs for each show

To determine

Requirement-2:

To determine: Breakeven number of shows per year using the equation approach

To determine

Requirement-3:

To determine: Number of shows per year to earn a profit for $4,128,000 using the Contribution margin approach

To determine

Requirement-4:

To prepare: The Contribution margin income statement for 140 shows in a year.

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Answer 3

Question

Chapter 21, Problem P21.57BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$ xs

Requirement-1:

To determine: Revenue and Variable costs for each show

To determine

Requirement-2:

To determine: Breakeven number of shows per year using the equation approach

To determine

Requirement-3:

To determine: Number of shows per year to earn a profit for $4,128,000 using the Contribution margin approach

To determine

Requirement-4:

To prepare: The Contribution margin income statement for 140 shows in a year.

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Answer 4

Question

Chapter 21, Problem P21.57BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$ xs

Requirement-1:

To determine: Revenue and Variable costs for each show

To determine

Requirement-2:

To determine: Breakeven number of shows per year using the equation approach

To determine

Requirement-3:

To determine: Number of shows per year to earn a profit for $4,128,000 using the Contribution margin approach

To determine

Requirement-4:

To prepare: The Contribution margin income statement for 140 shows in a year.

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Answer 5

Chapter 21, Problem P21.57BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$ xs

Requirement-1:

To determine: Revenue and Variable costs for each show

To determine

Requirement-2:

To determine: Breakeven number of shows per year using the equation approach

To determine

Requirement-3:

To determine: Number of shows per year to earn a profit for $4,128,000 using the Contribution margin approach

To determine

Requirement-4:

To prepare: The Contribution margin income statement for 140 shows in a year.

Answer 6

Chapter 21, Problem P21.57BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$ xs

Requirement-1:

To determine: Revenue and Variable costs for each show

Answer 7

Chapter 21, Problem P21.57BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$ xs

Requirement-1:

To determine: Revenue and Variable costs for each show

Answer 8

To determine

Requirement-2:

To determine: Breakeven number of shows per year using the equation approach

Answer 9

To determine

Requirement-2:

To determine: Breakeven number of shows per year using the equation approach

Answer 10

To determine

Requirement-3:

To determine: Number of shows per year to earn a profit for $4,128,000 using the Contribution margin approach

Answer 11

To determine

Requirement-3:

To determine: Number of shows per year to earn a profit for $4,128,000 using the Contribution margin approach

Answer 12

To determine

Requirement-4:

To prepare: The Contribution margin income statement for 140 shows in a year.

Answer 13

To determine

Requirement-4:

To prepare: The Contribution margin income statement for 140 shows in a year.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 21 - For Frank’s Funky Sounds, straight-line...Ch. 21 - Prob. 2QC Ch. 21 - Prob. 3QC Ch. 21 - Prob. 4QC Ch. 21 - Prob. 5QC Ch. 21 - On a CVP graph, the total cost line intersects the...Ch. 21 - If a company increases its sales price per unit...Ch. 21 - Prob. 8QC Ch. 21 - Prob. 9QC Ch. 21 - Prob. 10QC

Requirement-2: To determine: Breakeven number of shows per year using the equation approach

Requirement-3: To determine: Number of shows per year to earn a profit for $4,128,000 using the Contribution margin approach

Requirement-4: To prepare: The Contribution margin income statement for 140 shows in a year.

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Chapter 21 Solutions

Requirement-2:

To determine: Breakeven number of shows per year using the equation approach

Requirement-3:

To determine: Number of shows per year to earn a profit for $4,128,000 using the Contribution margin approach

Requirement-4:

To prepare: The Contribution margin income statement for 140 shows in a year.