JP Corporation's projected data for 2017 are: Sales: 203,000 units Unit Price: $70 Total Variable Cost:...
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...
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...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
2. Cutlass Company's projected profit for the coming year is as follows: Total Per Unit Sales $200,000 $20 Total variable cost 120,000 Contribution margin 80,000 8 Total fixed cost 64,000 Contribution margin $16,000 Required (40 marks): a. Compute the variable cost ratio. Compute the contribution margin ratio. b. Compute the break-even point in units. c. Compute the break-even point in sales dollars. d. How many units must be sold to earn a profit of $30,000? e. Using the contribution margin...
Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 11,700,000 Total variable cost 7,020,000 Contribution margin $ 4,680,000 Total fixed cost 2,705,040 Operating income $ 1,974,960 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent. S per unit 1(c). Compute contribution margin ratio. 96 1(d). Compute break-even point...
Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 12,150,000 Total variable cost 7,654,500 Contribution margin $ 4,495,500 Total fixed cost 2,719,278 Operating income $ 1,776,222 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $ 17.01 per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent. $ 9.99 per unit 1(c). Compute contribution margin ratio. 37.00 %...
Martin Company's projected profit for the coming year is as follows: Total Per Unit Sales $300,000 $30 Total Variable Cost 200,000 20 Contribution Margin $100,000 $10 Total Fixed Cost 80,000 Operating Income $20,000 Compute the variable cost ratio (round to 4 decimal places). Compute the contribution margin ratio (round to 4 decimal places). Compute the break-even point in units. Compute the break-even point in sales dollars. How many units must be sold to earn a profit of $50,000? For the...
ABC Company projected the following operating income for the coming year: Units sold 385,000 $ Sales revenue Variable expenses Contribution margin Fixed expenses Operating income 9,240,000 7,392,000 1,848,000 1,663,200 184,800 a) b) Como $ 330,000 Compute break-even points in sales dollars. Compute the number of units to be sold to earn operating income of: Compute the additional income the company would earn if sales were to increase by $ 55,000 more than expected. Ignore g) above, based on the sales...
7) Total Variable cost = Number of units sold x variable cost per unit 8) Operating Leverage = Contribution Margin / Net Income Complete the below table: Sales Variable Cost Total Contribution Margin Fixed Costs Operating Income Break-even Sales Revenue 150,000 125,000 50,000 B 85,000 35,000 15,000 75,000 65,000 113,750 D 180,000 50,000 144,000 Remember: 1) Variable costs rise and fall with an increase or decrease in revenue 2) Fixed costs do not rise and fall with an increase or...
1. A company sold a total of 1,000 units for total sales revenue of $65,000. The company incurred total variable expenses of $45,500 and total fixed expenses of $ 14,040. Based on this, the company reported a total contribution margin of $19,500 and net operating income of $ 5,460. Use this information to answer the following questions. Assume that all units are within the relevant range. Calculate the per-unit contribution margin. (Round your answer to 2 decimal places.)? Calculate the...