Trevor's Grout Company produces and sells grout to clients so they can install tile in their...
Trevor's Grout Company produces and sells grout to clients so they can install tile in their new homes. Trevor has supplied the following data about his grout company:
| Kilograms (of grout) produced and sold | 340,000 | |
| Sales revenue | $ | 1,910,000 |
| Variable manufacturing expense | $ | 956,000 |
| Fixed manufacturing expense | $ | 258,000 |
| Variable selling and administrative expense | $ | 363,000 |
| Fixed selling and administrative expense | $ | 224,000 |
| Net operating income | $ | 109,000 |
Trevor's Grout Company's contribution margin ratio is closest to:
Garrison 16e Rechecks 2018-06-19
Multiple Choice
-
81.0%
-
30.9%
-
74.8%
-
49.9%
Homework Answers
Variable costs = 956,000+363,000 = 1,319,000
Contribution margin ratio
= (Sales revenue - Variable costs)/Sales revenue
= (1,910,000-1,319,000)/1,910,000
= 30.9%
Add Answer to:
Trevor's Grout Company produces and sells grout to clients so
they can install tile in their...
Bryans Corporation has provided the following data for its two most recent years of operation: Selling...
Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 53 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000 Year 1 Year 2 Units in beginning inventory...
please answer all parts to the question. The Marx Company produces a 10-inch chef knife used...
please answer all parts to the question.
The Marx Company produces a 10-inch chef knife used by commercial chefs. The knives sell for $200 each. In 2020, the company produced 10,400 units and sold 8,300 units. There was no beginning inventory. Following are variable and full costing income statements for 2020 Income Statement Prepared Using Variable Costing Marx Company Income Statement For the Year Ending December 31, 2020 Sales $1,660,000 Less variable costs: Variable cost of goods sold $820,000 Variable...
Gabe's Gate Company sells iron gates to schools so they can gate off their campus'. Gabe's Gate Company has provided the...
Gabe's Gate Company sells iron gates to schools so they can gate off their campus'. Gabe's Gate Company has provided the following data concerning its most recent month of operations: Selling price $ 135 Units in beginning inventory 0 Units produced 3,200 Units sold 2,660 Units in ending inventory 540 Variable costs per unit: Direct materials $ 53 Direct labor $ 23 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 8 Fixed costs: Fixed manufacturing overhead $...
Smith Company produces and sells one product for $40 per unit. The company has no beginning inventories. Its variable ma...
Smith Company produces and sells one product for $40 per unit. The company has no beginning inventories. Its variable manufacturing cost per unit is $18 and the variable selling and administrative expense per unit is $4. The fixed manufacturing overhead and fixed selling and administrative expense total $80,000 and $20,000, respectively. If Smith Company produces 8,000 units and sells 7,500 units during the year, then its net operating income under absorption and variable costing
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year....
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,500 units) $ 1,140,000 Variable expenses: Variable cost of...
Werner Company produces and sells disposable foil baking pans to retailers for $2.95 per pan. The...
Werner Company produces and sells disposable foil baking pans to retailers for $2.95 per pan. The variable cost per pan is as follows: Direct materials $0.33 0.52 0.67 Direct labor Variable factory overhead Variable selling expense 0.13 Fixed manufacturing cost totals $305,334 per year. Administrative cost (all fixed) totals $41,636 Required: 1. Compute the number of pans that must be sold for Werner to break even pans 2. Conceptual Connection: What is the unit variable cost? What is the unit...
Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display...
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: Direct materials $1.87 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...
Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retai...
Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $9.52 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $297,600 per year. Administrative cost (all fixed) totals $225,680. Comer expects to sell 241,500 strings of light next year. Required: 1. Calculate the break-even point in units. units 2. Calculate the margin...
The JustOneMore Company produces and sells organic plain potato chips. The one-pound family size bag of...
The JustOneMore Company produces and sells organic plain potato chips. The one-pound family size bag of chips has two direct materials – potatoes and packaging. JustOneMore is preparing budgets for the second quarter ending June 30, 2019. For each requirement below prepare budgets by month for April, May, and June, and a total budget for the quarter. Statements 5-8 are the only ones needed! The previous year’s sales (2018) for the corresponding period were: April 60,000 bags May 70,000 bags...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produc...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $20 Total Direct materials $ 680,000 340,000 102,e00 170,000 68,000 204,000 Direct labor 10 Variable nanufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense 3 6 $46 $1,564,000 Total cost The Rets normally sell for $51 each. Fixed manufacturing overhead is...
please answer all parts to the question.
The Marx Company produces a 10-inch chef knife used by commercial chefs. The knives sell for $200 each. In 2020, the company produced 10,400 units and sold 8,300 units. There was no beginning inventory. Following are variable and full costing income statements for 2020 Income Statement Prepared Using Variable Costing Marx Company Income Statement For the Year Ending December 31, 2020 Sales $1,660,000 Less variable costs: Variable cost of goods sold $820,000 Variable...
Werner Company produces and sells disposable foil baking pans to retailers for $2.95 per pan. The variable cost per pan is as follows: Direct materials $0.33 0.52 0.67 Direct labor Variable factory overhead Variable selling expense 0.13 Fixed manufacturing cost totals $305,334 per year. Administrative cost (all fixed) totals $41,636 Required: 1. Compute the number of pans that must be sold for Werner to break even pans 2. Conceptual Connection: What is the unit variable cost? What is the unit...
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: Direct materials $1.87 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...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $20 Total Direct materials $ 680,000 340,000 102,e00 170,000 68,000 204,000 Direct labor 10 Variable nanufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense 3 6 $46 $1,564,000 Total cost The Rets normally sell for $51 each. Fixed manufacturing overhead is...
Most questions answered within 3 hours.
-
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 5 minutes ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 1 hour ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 52 minutes ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 30 minutes ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 1 hour ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 2 hours ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 2 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 2 hours ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 2 hours ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 3 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 3 hours ago -
PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I
DESPERATELY NEED HELP
Consider...
asked 3 hours ago