Homework Answers
1) Required unit sales = (Fixed cost+Desired profit)/Contribution margin per unit = (50000+30000)/(5-3) = 40000
So answer is d) 40000 Units
2) Contribution margin ratio = 2/5 = 40%
Required sales = (50000+40000)/.40 = 225000
So answer is a) $225000
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Wayhaven, Inc. has provided the following information regarding its costs. Units Cost Information Selling price 5...
Wayhaven, Inc. has provided the following information regarding its costs. Units Cost Information Selling price Variable...
Wayhaven, Inc. has provided the following information regarding its costs. Units Cost Information Selling price Variable costs Fixed costs $50,000 Knowledge Check 01 If Wayhaven wants to earn a profit of $30,000, how many units should it sell? 25,000 units 30,000 units 35,000 units 40,000 units Knowledge Check 02 If Wayhaven wants to earn a target profit of $40,000, what is the target sales amount in dollars? Use the contribution margin ratio method. $225,000 $50,000 $150,000 6125 nnn
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Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to...
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+ Cm 30. Webber, Inc, developed the following information for its product: Per Unit Sales price...
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Given the information provided, do the requirements listed: Karney Company has revenues of $500,000, variable costs of $350,000, and fixed costs of $135,000. The sales price per unit is $100 and the Variable Cost per unit is $70, at this level of sales the Fixed Costs per unit is $27. A. Compute the Contribution Margin per unit and the Contribution Margin Ratio. B. Compute total units and sales dollars needed to break-even. C. Compute total sales dollars needed to achieve...
Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1....
Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 750 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank’s break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $65,000...
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Wayhaven, Inc. has provided the following information regarding its costs. Units Cost Information Selling price Variable costs Fixed costs $50,000 Knowledge Check 01 If Wayhaven wants to earn a profit of $30,000, how many units should it sell? 25,000 units 30,000 units 35,000 units 40,000 units Knowledge Check 02 If Wayhaven wants to earn a target profit of $40,000, what is the target sales amount in dollars? Use the contribution margin ratio method. $225,000 $50,000 $150,000 6125 nnn
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions. BARRY'S COFFEE CAKES Contribution Margin Income Statement 20,000 units 25,000 units Total Percents of Sales Per Unit Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Net operating income Total $150,000 se.000 100,000 30.000 $ 70,000 LI 1 Knowledge Check 01 What is the unit contribution margin? $7.50 $2.50 $5.00 $3.00 Knowledge Check 02 What is the contribution margin...
Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $530 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 810 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $84,000...
+ Cm 30. Webber, Inc, developed the following information for its product: Per Unit Sales price Variable cost Contribution margin 527 $90 Total fixed costs $1.215.000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. 1. Prepare a CVP income statement assuming the company is presently selling 50,000 units. 2. Calculate the contribution margin ratio and the per unit contribution margin. 3 Calculate break even in unit sales and in sales...
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