-
Wildhorse Company has the following information available for
September 2020.
Unit selling price of video game consoles
$570
Unit variable costs
$456
Total fixed costs
$38,760
Units sold
600
Compute the unit contribution margin.
Unit contribution margin
Prepare a CVP income statement that shows both total and per
unit amounts.
WILDHORSE COMPANY
CVP Income Statement
For the Month Ended September 30, 2020
Total
Per Unit
Administrative ExpensesContribution MarginCost of Goods SoldFixed
CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable
Costs
$
$
Administrative ExpensesContribution...
-
Exercise 5-13 (Video)
Ivanhoe Company has the following information available for
September 2020.
Unit selling price of video game consoles
$480
Unit variable costs
$336
Total fixed costs
$63,360
Units sold
600
Compute the unit contribution margin.
Unit contribution margin
Prepare a CVP income statement that shows both total and per
unit amounts.
IVANHOE COMPANY
CVP Income Statement
For the Month Ended September 30, 2020
Total
Per Unit
Administrative ExpensesContribution MarginCost of Goods SoldFixed
CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable
Costs
$...
-
Booth Company had sales in 2020 of $1,715,000 on 68,600 units.
Variable costs totaled $1,029,000 and fixed costs totaled
$536,000.
A new raw material is available that will decrease the variable
costs per unit by 20% (or $3.00). However, to process the new raw
material, fixed operating costs will increase by $113,000.
Management feels that two-thirds of the decline in the variable
costs per unit should be passed on to customers in the form of a
sales price reduction. The...
-
Mary Willis is the advertising manager for Grouper Shoe Store.
She is currently working on a major promotional campaign. Her ideas
include the installation of a new lighting system and increased
display space that will add $21,800 in fixed costs to the $128,000
currently spent. In addition, Mary is proposing that a 5% price
decrease ($20 to $19) will produce a 20% increase in sales volume
(20,000 to 24,000). Variable costs will remain at $12 per pair of
shoes. Management...
-
Carey Company had sales in 2019 of $1,609,400 on 61,900 units.
Variable costs totaled $866,600, and fixed costs totaled
$475,000.
A new raw material is available that will decrease the variable
costs per unit by 20% (or $2.80). However, to process the new raw
material, fixed operating costs will increase by $90,000.
Management feels that one-half of the decline in the variable costs
per unit should be passed on to customers in the form of a sales
price reduction. The...
-
Jorge Company bottles and distributes B-Lite, a diet soft drink.
The beverage is sold for 50 cents per 16-ounce bottle to retailers,
who charge customers 75 cents per bottle. For the year 2017,
management estimates the following revenues and costs.
Sales
$1,850,000
Selling expenses—variable
$50,000
Direct materials
430,000
Selling expenses—fixed
50,000
Direct labor
330,000
Administrative expenses—variable
32,500
Manufacturing overhead—variable
360,000
Administrative expenses—fixed
60,000
Manufacturing overhead—fixed
418,500
(a)
Prepare a CVP income statement for 2017 based on management’s
estimates.
JORGE COMPANY...
-
Crane Company bottles and distributes B-Lite, a diet soft drink.
The beverage is sold for 50 cents per 16-ounce bottle to retailers,
who charge customers 75 cents per bottle. For the year 2020,
management estimates the following revenues and costs.
Sales
$1,550,000
Selling expenses—variable
$72,000
Direct materials
440,000
Selling expenses—fixed
53,000
Direct labor
340,000
Administrative expenses—variable
28,000
Manufacturing overhead—variable
360,000
Administrative expenses—fixed
48,500
Manufacturing overhead—fixed
100,000
Prepare a CVP income statement for 2020 based on management’s
estimates.
CRANE COMPANY
CVP...
-
Problem 11-2
Bramble Company bottles and distributes B-Lite, a diet soft drink.
The beverage is sold for 50 cents per 16-ounce bottle to retailers,
who charge customers 75 cents per bottle. For the year 2017,
management estimates the following revenues and costs.
Sales
$1,840,000
Selling expenses—variable
$60,000
Direct materials
390,000
Selling expenses—fixed
55,000
Direct labor
320,000
Administrative expenses—variable
34,000
Manufacturing overhead—variable
300,000
Administrative expenses—fixed
46,000
Manufacturing overhead—fixed
417,000
Prepare a CVP income statement for 2017 based on management’s
estimates.
BRAMBLE...
-
Pharoah Company has the following information available for September 2020. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $520 $364 $48,360 600 Compute the unit contribution margin. Unit contribution margin LINK TO TEXT LINK TO TEXT Prepare a CVP income statement that shows both total and per unit amounts. PHAROAH COMPANY CVP Income Statement For the Month Ended September 30, 2020 Total Per Unit Compute Pharoah' break-even point in units. Break-even point in...
-
The following CVP income statements are available for Blanc
Company and Noir Company.
Blanc Company
Noir Company
Sales
$470,000
$470,000
Variable costs
282,000
235,000
Contribution margin
188,000
235,000
Fixed costs
169,200
216,200
Net income
$18,800
$18,800
Calculate Contribution margin ratio.
Contribution Margin Ratio
Blanc Company
Noir Company
Compute the break-even point in dollars for each company.
(Round answers to 0 decimal places, e.g.
5,125.)
Break-even Point
Blanc Company
$
Noir Company
$
Compute margin of safety ratio for each company....
Wildhorse Company has the following information available for
September 2020.
Unit selling price of video game consoles
$570
Unit variable costs
$456
Total fixed costs
$38,760
Units sold
600
Compute the unit contribution margin.
Unit contribution margin
Prepare a CVP income statement that shows both total and per
unit amounts.
WILDHORSE COMPANY
CVP Income Statement
For the Month Ended September 30, 2020
Total
Per Unit
Administrative ExpensesContribution MarginCost of Goods SoldFixed
CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable
Costs
$
$
Administrative ExpensesContribution...
Exercise 5-13 (Video)
Ivanhoe Company has the following information available for
September 2020.
Unit selling price of video game consoles
$480
Unit variable costs
$336
Total fixed costs
$63,360
Units sold
600
Compute the unit contribution margin.
Unit contribution margin
Prepare a CVP income statement that shows both total and per
unit amounts.
IVANHOE COMPANY
CVP Income Statement
For the Month Ended September 30, 2020
Total
Per Unit
Administrative ExpensesContribution MarginCost of Goods SoldFixed
CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable
Costs
$...
Mary Willis is the advertising manager for Grouper Shoe Store.
She is currently working on a major promotional campaign. Her ideas
include the installation of a new lighting system and increased
display space that will add $21,800 in fixed costs to the $128,000
currently spent. In addition, Mary is proposing that a 5% price
decrease ($20 to $19) will produce a 20% increase in sales volume
(20,000 to 24,000). Variable costs will remain at $12 per pair of
shoes. Management...
Problem 11-2
Bramble Company bottles and distributes B-Lite, a diet soft drink.
The beverage is sold for 50 cents per 16-ounce bottle to retailers,
who charge customers 75 cents per bottle. For the year 2017,
management estimates the following revenues and costs.
Sales
$1,840,000
Selling expenses—variable
$60,000
Direct materials
390,000
Selling expenses—fixed
55,000
Direct labor
320,000
Administrative expenses—variable
34,000
Manufacturing overhead—variable
300,000
Administrative expenses—fixed
46,000
Manufacturing overhead—fixed
417,000
Prepare a CVP income statement for 2017 based on management’s
estimates.
BRAMBLE...
Pharoah Company has the following information available for September 2020. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $520 $364 $48,360 600 Compute the unit contribution margin. Unit contribution margin LINK TO TEXT LINK TO TEXT Prepare a CVP income statement that shows both total and per unit amounts. PHAROAH COMPANY CVP Income Statement For the Month Ended September 30, 2020 Total Per Unit Compute Pharoah' break-even point in units. Break-even point in...
The following CVP income statements are available for Blanc
Company and Noir Company.
Blanc Company
Noir Company
Sales
$470,000
$470,000
Variable costs
282,000
235,000
Contribution margin
188,000
235,000
Fixed costs
169,200
216,200
Net income
$18,800
$18,800
Calculate Contribution margin ratio.
Contribution Margin Ratio
Blanc Company
Noir Company
Compute the break-even point in dollars for each company.
(Round answers to 0 decimal places, e.g.
5,125.)
Break-even Point
Blanc Company
$
Noir Company
$
Compute margin of safety ratio for each company....