Marginal Costing | ||||
Sales | 88000 | |||
Total variable cost | 66000 | |||
Contribution margin | 22000 | |||
Total fixed cost | 10500 | |||
Operating income | 11500 | |||
1 | Contribution margin ratio | Contribution | / | Sales |
22000 | / | 88000 | ||
25% | ||||
2 | Variable cost ratio | Variable cost | / | Sales |
66000 | / | 88000 | ||
75% | ||||
3 | Breakeven sales revenue | Total fixed cost | / | Contribution margin ratio |
10500 | / | 25% | ||
$42,000 | ||||
4 | Aston can increase projected operating income following ways: | |||
a) By reducing the variable cost. | ||||
b) By reducing the fixed cost. | ||||
Note: Answer of the ABC costing couldn't be given as complete data is not provided. | ||||
Please provide complete data of first part of the question like number of setups required for one unit etc. |
Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200...
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Margin of Safety Comer Company produces and sells strings of colorful Indoor/outdoor lights for holiday display to retailers for $11.70 per string. The variable costs per string are as follows: $1.87 Direct materials Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $481,950 per year. Administrative cost (all fixed) totals $387.702. Comer expects to sell 216,700 strings of light next year. Required: 1. Calculate the break-even point in units, units 2. Calculate the margin...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total Variable cost 66,000 $22,000 Contribution margin Total Fixed cost 10,500 Operating income $11,500 Required: 1. Calculate the contribution margin ratio. 2. Calculate the variable cost ratio. 3. Calculate the break-even sales revenue for Ashton. 4. How could Ashton increase projected operating income without increasing the total sales revenue
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 $900 800,000 $750 Selling price Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Setups Number of setups 300 Machining Machine hours...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 $750 Selling price $900 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...
Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost...