Homework Answers
Contribution margin=Sales-Variable cost
=(17-10)=$7 per unit
Contribution margin ratio=Contribution margin/Sale
=7/17
=41.18%(Approx).
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QUESTION 22 The following information comes from the companies accounting records at a sales level of...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 102,000 units. Sales revenue Variable costs Fixed costs $9,078,000 2,958,000 5,700,000 Required: A. Compute the company's per-unit contribution margin and break-even point in units. B. How many units must Portofino sell to produce a target profit of $450,000? C. Assume that Portofino was able to reduce the variable cost per unit by $3. What selling price could management charge if...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when t...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 136,000 units. $11,560,000 2,992,000 8,127,000 Sales revenue Variable costs Fixed costs Required: A. Compute the company's per-unit contribution margin and break-even point in units. B. How many units must Portofino sell to produce a target profit of $945,000? C. Assume that Portofino was able to reduce the variable cost per unit by $5. What selling price could management charge if...
Exercise 5-17 (Part Level Submission) Pharoah Bucket Co., a manufacturer of rain barrels, had the following...
Exercise 5-17 (Part Level Submission) Pharoah Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,090 units Sales price $55 per unit Variable costs $33 per unit Fixed costs $22,990 (a) What is the contribution margin ratio? Contribution margin ratio %
[The following information applies to the questions displayed below.] Fanning Company makes and sells products with...
[The following information applies to the questions displayed below.] Fanning Company makes and sells products with variable costs of $24 each. Fanning incurs annual fixed costs of $346,800. The current sales price is $92. b. Determine the break-even point in units and in dollars. Prepare an income statement using the contribution margin format. c. Suppose that Fanning desires to earn a $272,000 profit. Determine the sales volume in units and dollars required to earn the desired profit. Prepare an income...
Jackson had the following information extracted from his records for December 2015. sales per unit %...
Jackson had the following information extracted from his records for December 2015. sales per unit % volume 7000 units 210,000 variable 136500 fixed costs 54000 What is the variable cost per unit? What is the contribution margin what is the break even point in units? What is the margin of safety? If sales increased by 54000 What is the impact on net income?
Exercise 5-17 (Part Level Submission) Pharoah Bucket Co., a manufacturer of rain barrels, had the following...
Exercise 5-17 (Part Level Submission) Pharoah Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales Sales price Variable costs Fixed costs 2,090 units $55 per unit $33 per unit $22,990 (a) Your answer is correct. What is the contribution margin ratio? Contribution margin ratio 40 % (b) Your answer is correct. What is the break-even point in dollars? Break-even point 574751 (c) Your answer is correct. What is the margin of safety in dollars and...
Variable costs as a percentage of sales for Lemon Inc. are 73%, current sales are $647,000,...
Variable costs as a percentage of sales for Lemon Inc. are 73%, current sales are $647,000, and fixed costs are $190,000. How much will operating income change if sales increase by $37,200? a. $10,044 increase b. $27,156 increase c. $27,156 decrease d. $10,044 decrease If sales are $828,000, variable costs are 80% of sales, and operating income is $209,000, what is the contribution margin ratio? a. 20% b. 80% c. 24% d. 76% Strait Co. manufactures office furniture. During the...
Required information (The following information applies to the questions displayed below.) Astro Co. sold 19,600 units...
Required information (The following information applies to the questions displayed below.) Astro Co. sold 19,600 units of its only product and incurred a $46,568 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $146,000. The maximum output capacity of...
Exercise 5-17 (Part Level Submission) Pharoah Bucket Co., a manufacturer of rain barrels, had the following...
Exercise 5-17 (Part Level Submission) Pharoah Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales Sales price Variable costs Fixed costs 2,090 units $55 per unit $33 per unit $22,990 (a) Your answer is correct. What is the contribution margin ratio? Contribution margin ratio 40 % (b) What is the break-even point in dollars? Break-even point $
part A *Exercise 22-10 a-b (Part Level Submission) In the month of March, Crane Salon services...
part A
*Exercise 22-10 a-b (Part Level Submission) In the month of March, Crane Salon services 610 clients at an avera le Salon services 610 clients at an average price of $140. During the month, fixed costs were $20,335 and variable costs were 65% of sales. *(a) Determine the total contribution margin in doll le the total contribution margin in dollars, the per unit contribution marain, and the contribucionary ratio. Contribution margin in dollars Contribution margin per unit Contribution margin...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 102,000 units. Sales revenue Variable costs Fixed costs $9,078,000 2,958,000 5,700,000 Required: A. Compute the company's per-unit contribution margin and break-even point in units. B. How many units must Portofino sell to produce a target profit of $450,000? C. Assume that Portofino was able to reduce the variable cost per unit by $3. What selling price could management charge if...
The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 136,000 units. $11,560,000 2,992,000 8,127,000 Sales revenue Variable costs Fixed costs Required: A. Compute the company's per-unit contribution margin and break-even point in units. B. How many units must Portofino sell to produce a target profit of $945,000? C. Assume that Portofino was able to reduce the variable cost per unit by $5. What selling price could management charge if...
Exercise 5-17 (Part Level Submission) Pharoah Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,090 units Sales price $55 per unit Variable costs $33 per unit Fixed costs $22,990 (a) What is the contribution margin ratio? Contribution margin ratio %
Exercise 5-17 (Part Level Submission) Pharoah Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales Sales price Variable costs Fixed costs 2,090 units $55 per unit $33 per unit $22,990 (a) Your answer is correct. What is the contribution margin ratio? Contribution margin ratio 40 % (b) Your answer is correct. What is the break-even point in dollars? Break-even point 574751 (c) Your answer is correct. What is the margin of safety in dollars and...
Variable costs as a percentage of sales for Lemon Inc. are 73%, current sales are $647,000, and fixed costs are $190,000. How much will operating income change if sales increase by $37,200? a. $10,044 increase b. $27,156 increase c. $27,156 decrease d. $10,044 decrease If sales are $828,000, variable costs are 80% of sales, and operating income is $209,000, what is the contribution margin ratio? a. 20% b. 80% c. 24% d. 76% Strait Co. manufactures office furniture. During the...
Required information (The following information applies to the questions displayed below.) Astro Co. sold 19,600 units of its only product and incurred a $46,568 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $146,000. The maximum output capacity of...
Exercise 5-17 (Part Level Submission) Pharoah Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales Sales price Variable costs Fixed costs 2,090 units $55 per unit $33 per unit $22,990 (a) Your answer is correct. What is the contribution margin ratio? Contribution margin ratio 40 % (b) What is the break-even point in dollars? Break-even point $
part A
*Exercise 22-10 a-b (Part Level Submission) In the month of March, Crane Salon services 610 clients at an avera le Salon services 610 clients at an average price of $140. During the month, fixed costs were $20,335 and variable costs were 65% of sales. *(a) Determine the total contribution margin in doll le the total contribution margin in dollars, the per unit contribution marain, and the contribucionary ratio. Contribution margin in dollars Contribution margin per unit Contribution margin...
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