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Problem 4-4 Lancer Audio produces a high-end DVD player that sells for $1,300. Total operating expenses for July were as follows: 150 $71,000 2,500 25,000 2,300 5,600 Units produced and sold Component costs Supplies Assembly labor Rent Supervisor salary Electricity Telephone Gas Shipping Advertising Administrative costs Total 350 280 300 2,000 2,600 15,000 $126,930 Total operating expenses for the past 12 months are as follows: August September October November December January February March April Units Produced and Sold 165 130...
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Problem 4-14 Culver Tennis Racquet Co. produces and sells three models: Units sold Sales Less variable costs Contribution margin Less common fixed costs Profit Smasher 2,000 $160,300 73,800 $86,500 Basher 3,200 $168,100 69,600 $98,500 Dinker 3 ,200 $117,400 35,600 $81,800 Total 8,400 $445,800 179,000 266,800 141,900 $124,900 What is the weighted average contribution margin per unit? (Round answer to 2 decimal places, e.g. 15.25.) Weighted average contribution margins per unit LINK TO TEXT Calculate the break-even point in units assuming...
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E21-31 Calculating contribution margin ratio, preparing contribution margin incone statements Bluvid produces a high-end, progressive-scan DVD player with up to 160-hour recording capacity and MP3 playback capability. Relevant data for the DVD players sold by this company in June 2013 are as follows: Unit selling price of DVD player Unit variable costs Total monthly fixed costs Units sold $ 500 300 200,000 1,600 Requirements 1. Prepare a contribution margin income statement for the month ending June 30, 2013 2. Calculate...
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Exercise 3.27 Stellar produces one single product, a small reading tablet, and sells it at $130 per unit. Its current annual sales are $312,000. Its annual fixed costs include factory rent, 562,400; depreciation expense: equipment, $15,600; utilities, $31,200; insurance, $12,480. Its variable costs include materials, $39 per unit, and direct labour, $52 per unit. Stellar's income tax rate is 20%. What is the contribution margin per unit? Contribution margin per unit LINK TO TEXT LINK TO TEXT LINK TO TEXT...
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Exercise 3.27 Novak produces one single product, a small reading tablet, and sells it at $90 per unit. Its current annual sales are $162,000. Its annual fixed costs include factory rent, $30,780; depreciation expense; equipment, $8,100; utilities, $16,200; insurance, $6,480. Its variable costs include materials, $27 per unit, and direct labour, $36 per unit. Novak's income tax rate is 20%. What is the contribution margin per unit? Contribution margin per unit s LINK TO TEXT LINK TO TEXT LINK TO...
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Exercise 3.37 Pronghorn manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales $2,000,000 1,040,000 Contribution margin 960,000 790,000 tax earnings$170,000 Variable costs Fixed costs Pre Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution margin per swimsuit to 2 decimal places, e.g. 15.25 and break even swimsuits to 0 decimal places, e.g. 125.) Contribution margin $ Break even per swimsuit swimsuits...
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Exercise 3.37 Cheyenne manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales Variable costs Contribution margin Fixed costs $2,000,000 1,050,000 950,000 785,000 $165,000 Pretax earnings Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution margin per swimsuit to 2 decimal places, e.g. 15.25 and break even swimsuits to 0 decimal places, e.g. 125.) Contribution margin $ per swimsuit Break even Swimsuits...
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Contribution Margin, Break-Even Units, Break-Even Sales, Margin
of Safety, Degree of Operating Leverage
Aldovar Company produces a variety of chemicals. One division
makes reagents for laboratories. The division's projected income
statement for the coming year is:
Sales (203,000 units @ $70)
$14,210,000
Total variable cost
8,120,000
Contribution margin
$6,090,000
Total fixed cost
4,945,500
Operating income
$1,144,500
Required:
1. Compute the contribution margin per unit,
and calculate the break-even point in units. Calculate the
contribution margin ratio and use it to...
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Contribution Margin, Break-Even Units, Break-Even Sales, Margin
of Safety, Degree of Operating Leverage
Aldovar Company produces a variety of chemicals. One division
makes reagents for laboratories. The division's projected income
statement for the coming year is:
Sales (203,000 units @ $70)
$14,210,000
Total variable cost
8,120,000
Contribution margin
$6,090,000
Total fixed cost
4,945,500
Operating income
$1,144,500
Required:
1. Compute the contribution margin per unit,
and calculate the break-even point in units. Calculate the
contribution margin ratio and use it to...
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7 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000 75,000 $ 18,000 Per Unit $20 14 $ 6 25 oints eBook Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $34,200? 3-b. Verify your answer...
Problem 4-4 Lancer Audio produces a high-end DVD player that sells for $1,300. Total operating expenses for July were as follows: 150 $71,000 2,500 25,000 2,300 5,600 Units produced and sold Component costs Supplies Assembly labor Rent Supervisor salary Electricity Telephone Gas Shipping Advertising Administrative costs Total 350 280 300 2,000 2,600 15,000 $126,930 Total operating expenses for the past 12 months are as follows: August September October November December January February March April Units Produced and Sold 165 130...
Problem 4-14 Culver Tennis Racquet Co. produces and sells three models: Units sold Sales Less variable costs Contribution margin Less common fixed costs Profit Smasher 2,000 $160,300 73,800 $86,500 Basher 3,200 $168,100 69,600 $98,500 Dinker 3 ,200 $117,400 35,600 $81,800 Total 8,400 $445,800 179,000 266,800 141,900 $124,900 What is the weighted average contribution margin per unit? (Round answer to 2 decimal places, e.g. 15.25.) Weighted average contribution margins per unit LINK TO TEXT Calculate the break-even point in units assuming...
E21-31 Calculating contribution margin ratio, preparing contribution margin incone statements Bluvid produces a high-end, progressive-scan DVD player with up to 160-hour recording capacity and MP3 playback capability. Relevant data for the DVD players sold by this company in June 2013 are as follows: Unit selling price of DVD player Unit variable costs Total monthly fixed costs Units sold $ 500 300 200,000 1,600 Requirements 1. Prepare a contribution margin income statement for the month ending June 30, 2013 2. Calculate...
Exercise 3.27 Stellar produces one single product, a small reading tablet, and sells it at $130 per unit. Its current annual sales are $312,000. Its annual fixed costs include factory rent, 562,400; depreciation expense: equipment, $15,600; utilities, $31,200; insurance, $12,480. Its variable costs include materials, $39 per unit, and direct labour, $52 per unit. Stellar's income tax rate is 20%. What is the contribution margin per unit? Contribution margin per unit LINK TO TEXT LINK TO TEXT LINK TO TEXT...
Exercise 3.27 Novak produces one single product, a small reading tablet, and sells it at $90 per unit. Its current annual sales are $162,000. Its annual fixed costs include factory rent, $30,780; depreciation expense; equipment, $8,100; utilities, $16,200; insurance, $6,480. Its variable costs include materials, $27 per unit, and direct labour, $36 per unit. Novak's income tax rate is 20%. What is the contribution margin per unit? Contribution margin per unit s LINK TO TEXT LINK TO TEXT LINK TO...
Exercise 3.37 Pronghorn manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales $2,000,000 1,040,000 Contribution margin 960,000 790,000 tax earnings$170,000 Variable costs Fixed costs Pre Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution margin per swimsuit to 2 decimal places, e.g. 15.25 and break even swimsuits to 0 decimal places, e.g. 125.) Contribution margin $ Break even per swimsuit swimsuits...
Exercise 3.37 Cheyenne manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales Variable costs Contribution margin Fixed costs $2,000,000 1,050,000 950,000 785,000 $165,000 Pretax earnings Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution margin per swimsuit to 2 decimal places, e.g. 15.25 and break even swimsuits to 0 decimal places, e.g. 125.) Contribution margin $ per swimsuit Break even Swimsuits...
7 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000 75,000 $ 18,000 Per Unit $20 14 $ 6 25 oints eBook Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $34,200? 3-b. Verify your answer...