Question

3T13-1 (similar to) Question Help urlington Windows is a small company that installs windows. Its cost structure is as follow
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution b:

Contribution margin per unit = Selling price - variable costs = $750 - $700 = $50 per unit

Operating income using contribution method = (Nos of units sold * Contribution margin per unit) - Fixed costs = Operating income

(4000*$50) - $155,000 = $45,000

Add a comment
Know the answer?
Add Answer to:
3T13-1 (similar to) Question Help urlington Windows is a small company that installs windows. Its cost...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • T13-1 (similar to) Question Help Burlington Windows is a small company that installs windows. Its cost...

    T13-1 (similar to) Question Help Burlington Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 750 700 155,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Burlington installs 4,000 windows Use (a) the Equation method to calculate operating income if Burlington installs 4,000 windows. Begin by determining the formula to...

  • Bernard Windows is a small company that installs windows. Its cost structure is as follows: Selling...

    Bernard Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation $ 500 Variable cost of each window installation $ 400 Annual fixed costs $150,000 Number of window units sold 2,500 Bernard is considering changing its sales compensation for next year. Bernard would pay salespeople a 5% commission next year and reduce fixed selling costs by $62,500. Calculate the degree of operating leverage at sales of 2,500 units under the...

  • The Award Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows...

    The Award Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows each month. Current production and sales are 10,000 windows per month. The company normally charges $300 per window. Cost information for the current activity level is as​ follows: Variable costs that vary with number of units produced Direct materials $600,000 Direct manufacturing labour 450,000 Variable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 200 batches x...

  • The Medal Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows...

    The Medal Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows each month. Current production and sales are 15,000 windows per month. The company normally charges $150 per window. Cost information for the current activity level is as follows: (Click the icon to view the cost information.) i (Click the icon to view the special order information.) 300,000 150,000 Variable costs that vary with number of units produced Direct materials Direct manufacturing labour Variable costs...

  • The Goal One Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows...

    The Goal One Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows each month. Current production and sales are 15,000 windows per month. The company normally charges $150 per window. Goal One has just received a special one-time order for 5,000 windows at $125 per window. Accepting the special order would not affect the company's regular business or it's fixed costs. Goal One makes windows die its existing customers in batch sizes I'd 59 windows (300...

  • The Award Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows...

    The Award Plus Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows each month. Current production and sales are 10,000 windows per month. The company normally charges $300 per window. Cost information for the current activity level is as​ follows: Variable costs that vary with number of units produced: Direct materials : $600,000 Direct manufacturing labour : 450,000 Variable costs (for setups, materials handling, quality control, and so on) that vary with number of batches, 200...

  • Need help with requirement 4 * E3-36 (similar to) Question Help presents the only operating income...

    Need help with requirement 4 * E3-36 (similar to) Question Help presents the only operating income statement shown here to George Gomez, a potential investor in the business. Help Mr. G Die Beauty mandatures and ses a face cream to small specially wores in the greater Los Angeles are understand Diva Beauty's cost structure Click the icon to view the operating income statement Read the rements © Data Table Requirement 1. Recast the income walement to emphasire contribution margin Diva...

  • Question Help E6-34A (similar to) Meyer Company, which uses the high-low method to analyze cost behavior,...

    Question Help E6-34A (similar to) Meyer Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's totale s cost. The company's cost and machine hour usage data fort first six months of the year follow (Click the loon to view the data) Requirements Using the high-low method, answer the following questions 1. What is the variable its cost per machine hour? 2. What is the red cost of its each month?...

  • Requirement 1. Use the high-low method to determine Ethan's operating cost equation. Let's begin by determining...

    Requirement 1. Use the high-low method to determine Ethan's operating cost equation. Let's begin by determining the formula that is used to calculate the variable cost (slope). Change in cost / Change in volume - Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component. Total operating cost . Total variable cost = Fixed cost Use the high-low method to determine the variable and fixed costs components of Ethan's operating cost equation. (Round the...

  • APPLY THE CONCEPTS: Target income (number of units sold) Suppose a business has pricing and cost...

    APPLY THE CONCEPTS: Target income (number of units sold) Suppose a business has pricing and cost information as follows:: Price and Cost Information Amount Selling Price per Unit $10.00 Variable Cost per Unit $5.00 Total Fixed Cost $100 For the upcoming period, the company wishes to generate operating income of $400. Given the cost and pricing structure for the company’s product, how many units must the company sell to attain its target income? Remember that the basic equation for calculating...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT