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Problem 6-23 CVP Applications; Contribution Margin Ratio: Degree
of Operating Leverage [LO6-1, LO6-3, LO6-4, LO6-5, LO6-8]
Feather Friends, Inc., distributes a high-quality wooden
birdhouse that sells for $40 per unit. Variable expenses are $20.00
per unit, and fixed expenses total $180,000 per year. Its operating
results for last year were as follows:
Sales
$
1,040,000
Variable expenses
520,000
Contribution margin
520,000
Fixed expenses
180,000
Net operating income
$
340,000
Required:
Answer each question independently based on the original
data:
1....
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Problem 6-23 CVP Applications; Contribution Margin Ratio: Degree
of Operating Leverage [LO6-1, LO6-3, LO6-4, LO6-5, LO6-8]
Feather Friends, Inc., distributes a high-quality wooden
birdhouse that sells for $40 per unit. Variable expenses are $20.00
per unit, and fixed expenses total $180,000 per year. Its operating
results for last year were as follows:
Sales
$
1,040,000
Variable expenses
520,000
Contribution margin
520,000
Fixed expenses
180,000
Net operating income
$
340,000
Required:
Answer each question independently based on the original
data:
4-a....
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10 Problem 6-23 CVP Applications; Contribution Margin Ratio: Degree of Operating Leverage (L06-1, LO6- 3, LO64, LO65, LO6-8]. Feather Friends, Inc. distributes a high-quality wooden birdhouse that sells for $20 per unit Variable expenses are $ per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: sales Variable expenses Contribution margin Fixed expenses et operating income 160.000 200.00 Required: Answer each question independently based on the original data: 1. What is the...
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Please work out so that I can understand.
Thanks.
Problem 6-23 CVP Applications; Contribution Margin Ratio: Degree
of Operating Leverage [LO6-1, LO6-3, LO6-4, LO6-5, LO6-8]
Feather Friends, Inc.,
distributes a high-quality wooden birdhouse that sells for $80 per
unit. Variable expenses are $40.00 per unit, and fixed expenses
total $180,000 per year. Its operating results for last year were
as follows:
Sales
$
1,920,000
Variable
expenses
960,000
Contribution
margin
960,000
Fixed
expenses
180,000
Net operating
income
$
780,000
Required:
Answer...
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Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 1,000,000 500,000 500,000 160,000 $ 340,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point...
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Problem 6-20 CVP Applications: Break-Even Analysis; Cost Structure; Target Sales (LO6-1, LO6-3, LOG- 4, LO6-5, LO6-6, LO6-8] Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direc labor cost. Last year, the company sold 50,000 of these balls, with the following results: Sales (50,000 balls) Variable...
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Problem 6-20 CVP Applications: Break-Even Analysis; Cost Structure; Target Sales [LO6-1, LO6-3, LO6- 4, LO6-5, LO6-6, LO6-8] Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 36,000 of these balls, with the following results: $ Sales (36,800 balls)...
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Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 3,240,000 1,620,000 1,620,000 180,000 $1,440,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in...
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Problem 6-20 CVP Applications: Break-Even Analysis; Cost Structure; Target Sales [LO6-1, LO6-3, LO6- 4, LO6-5, LO6-6, LO6-8] points Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost. eBook Last year, the company sold 58,000 of these balls, with the following results: Print References...
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Check my work 4 Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit. and fixed expenses total $200,000 per year. Its operating results for last year were as follows: 35 points Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 2, eee, eee 1, eee, eee 1, e82, eee 200,wee $ 800, eee eBook Required: Answer each question independently based on the original data: Print 1. What...