Variable Costing method: Under variable costing all the variable production costs are considered as product costs and all the fixed costs are considered as period costs. The formula for calculation of contribution margin under Variable Costing method is as follows: Contribution Margin = ( Sales price – Unit product cost ) × Units sold a. Produces and sells 2,000 Units: To determine: The Contribution Margin using the Variable Costing method, when the production is 2.000 units and sales is 2,000 units

Question

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Answer 1

Question

Chapter 21, Problem S21A.25SE

To determine

Variable Costing method:

Under variable costing all the variable production costs are considered as product costs and all the fixed costs are considered as period costs. The formula for calculation of contribution margin under Variable Costing method is as follows:

$Contribution Margin = (Sales price – Unit product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

c. Produces 5,000 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units

Expert Solution & Answer

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Answer 2

Question

Chapter 21, Problem S21A.25SE

To determine

Variable Costing method:

Under variable costing all the variable production costs are considered as product costs and all the fixed costs are considered as period costs. The formula for calculation of contribution margin under Variable Costing method is as follows:

$Contribution Margin = (Sales price – Unit product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

c. Produces 5,000 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units

Expert Solution & Answer

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Answer 3

Question

Chapter 21, Problem S21A.25SE

To determine

Variable Costing method:

Under variable costing all the variable production costs are considered as product costs and all the fixed costs are considered as period costs. The formula for calculation of contribution margin under Variable Costing method is as follows:

$Contribution Margin = (Sales price – Unit product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

c. Produces 5,000 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem S21A.25SE

To determine

Variable Costing method:

Under variable costing all the variable production costs are considered as product costs and all the fixed costs are considered as period costs. The formula for calculation of contribution margin under Variable Costing method is as follows:

$Contribution Margin = (Sales price – Unit product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

c. Produces 5,000 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units

Expert Solution & Answer

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Answer 5

Chapter 21, Problem S21A.25SE

To determine

Variable Costing method:

Under variable costing all the variable production costs are considered as product costs and all the fixed costs are considered as period costs. The formula for calculation of contribution margin under Variable Costing method is as follows:

$Contribution Margin = (Sales price – Unit product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2.000 units and sales is 2,000 units

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

To determine

c. Produces 5,000 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units

Answer 6

Chapter 21, Problem S21A.25SE

To determine

Variable Costing method:

Under variable costing all the variable production costs are considered as product costs and all the fixed costs are considered as period costs. The formula for calculation of contribution margin under Variable Costing method is as follows:

$Contribution Margin = (Sales price – Unit product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2.000 units and sales is 2,000 units

Answer 7

Chapter 21, Problem S21A.25SE

To determine

Variable Costing method:

Under variable costing all the variable production costs are considered as product costs and all the fixed costs are considered as period costs. The formula for calculation of contribution margin under Variable Costing method is as follows:

$Contribution Margin = (Sales price – Unit product cost) \times Units sold$

a. Produces and sells 2,000 Units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2.000 units and sales is 2,000 units

Answer 8

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

Answer 9

To determine

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

Answer 10

To determine

c. Produces 5,000 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units

Answer 11

To determine

c. Produces 5,000 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

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

Concept explainers

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

c. Produces 5,000 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units

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Chapter 21 Solutions

Concept explainers

b. Produces 2,500 units and sells 2,000 units: To determine: The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

c. Produces 5,000 units and sells 2,000 units: To determine: The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units

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Chapter 21 Solutions

b. Produces 2,500 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 2,500 units and sales is 2,000 units

c. Produces 5,000 units and sells 2,000 units:

To determine:

The Contribution Margin using the Variable Costing method, when the production is 5,000 units and sales is 2,000 units