Question

ons is 51,517,000 Determine Blugi Company Sell 10.500 units at $280 per united costs are $147,000 and income from following Round the contribution margin ratio to two decimal places Variable content Un contribution margin 6. Contribution margin ratie costs machine hour Round your answer to the nearestent 3052 14822 2.684 9.677 2.837 3,834 18,034 0.65 50.69 51.38 d. 30.14 is a product with a break-even point of 4.963 . The ar t is 101 p un, and the cost The Atlantic Company $223335 Determine the unit is price. Round answer to rest whole number Determine the break-even points in sale units of the company desires a target profit of $4,275. Round answer to the nearest whole Given the following cost and activity observations for Smithson Company's stes, use the high-low method to calculate Smithson's feed costs per month Round your final awwer to the nearest dollar. Do not found interim calculations Cost Machine Hours 9,900 $26,400 36.000 February 28,300 30.600 11.900 14.800 April $14,052 Gladstorm Enterprises seis a product for $53 per unit. The variable cost is 534 per unit, while fed costs are $25,308 Determine the break-even point in sale units. Round answer to the nearest whole number the price was increased to $71 per Round answer to the nearest whole Determine the break-even point in sale units number

Answer 1

Question 1

Income from operations = Contribution - Fixed Cost

$1,617,000 = Contribution - $147,000

Contribution = $1,764,000

Let Variable Cost be V

Contribution = Sales - Fixed Cost = (10,500 x $280) - V

$1,764,000 = $2,940,000 - V

V = Variable Cost = 1,176,000

Variable cost per unit = Variable cost/ No. of units = $1,176,000 / 10,500 = $112

Contribution margin per unit = Contribution / No. of units = $1,764,000 / 10,500 = $168

Contribution margin ratio = Contribution / Total sales = $1,764,000 / $2,940,000 = 60%

Question 2

Variable cost per unit =

$\frac{\mathrm{Highest activity cost - Lowest activity cost} }{\mathrm{Highest activity units - Lowest activity units}}$

= $3,834 - $2,684 / 18,034 - 9,667 = $1150 / 8367 = 0.14 (d)

Note: High low values should be chosen based on units and not based on cost

Question 3

Breakeven units = Fixed costs / Sales p.u - Variable cost p.u

Let Sales per unit be S

4,963 = $223,335 / S - $101

S = Sales price per unit = $146

Contribution = Sales - Variable cost = $146 - $101 = $45

Desired Profit = Contribution - Fixed costs

$94,275 = Contribution - $223,335

Desired contribution = $317,610

No .of unit sales for contribution = Contribution / Contribution per unit

Sales units required = $317,610 / $45 = 7058 units

Question 4

Variable cost per unit =

$\frac{\mathrm{Highest activity cost - Lowest activity cost} }{\mathrm{Highest activity units - Lowest activity units}}$

= $36,000 - $26,400 / 17,600 - 9,900 = $9600 / 7700 = $1.2467

Note: High low values should be chosen based on units and not based on cost

Fixed cost using high activity cost = Cost - (Variable cost per unit x highest activity unit)

= $36,000 - ($1.2467 x 17,600 units) = $36,000 - $21,943 = $14,057 (d)

Question 4

Breakeven units = Fixed costs / Sales p.u - Variable cost p.u

= $25,308 / $53 - $34 = 1,332 units

New Sales price per unit = $71

New Contribution = Sales - Variable cost = $71 - $34 = $37

Breakeven units = Fixed costs / Sales p.u - Variable cost p.u

= $25,308 / $71 - $34 = 684 units