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Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $28,000 and variable expenses of $10,480 Product x96N had sales of $41000 and variable expenses of $18,500. The fixed expenses of the entire company were $46,030. The break-even point for the entire company is closest to: Multiple Choice $79,322 $75,010 $79,362 $46,030

A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income 263,000 $1,104,600 $ 432,000 229,000 94,000 $219,000 $ 130,600 What is the companys unit contribution margin? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $2.00 per unit $0.22 per unit $4.20 per unit $2.20 per unit

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Answer #1

1)

Answer is $79362.

Explanation:

Total Sales of the company = $28000+ $41000 = $69000.

Total Variable cost = $10480 + $18500 = $28980.

Total contribution = Total Sales of the company - Total Variable cost = $69000 - $28980 = $40020.

Fixed Expense = $46030

Contribution margin ratio = Total contribution / Total Sales = $40020 / $69000 = 0.58

Break even point in total sales dollars = Fixed Expense / Contribution margin ratio = $46030 / 0.58 = $79362.

2)

Answer is $2.20 per units.

Explanation:

Company units contribution margin = Sales price per tons - Variable cost per tons

Sale price per tons = $1104600 / 263000 = $4.2.

Variable cost per tons = ($432000+$94000) / 263000 = $526000/263000 = $2.

Company units contribution margin =$4.2 - $2 = $2.20

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