Question

Given the information provided, do the requirements listed: Karney Company has revenues of $500,000, variable costs of $350,0

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans:

A.

Contribution margin per unit $30.00
Contribution Margin ratio = 30%

B.

Break even point in unit sales = 4500 units
Break-even point in sales dollar $                                           450,000

C.

Total sales dollars needed to achieve a target operating income = $600,000

Explanation:

A Computation of Contribution Margin Per unit: - Selling price per unit Variable costs per unit Contribution margin per unit

Feel free to ask any clarification, if required. Kindly provide feedback by thumbs up, if satisfied. It will be highly appreciated.
Thank you.

Add a comment
Know the answer?
Add Answer to:
Given the information provided, do the requirements listed: Karney Company has revenues of $500,000, variable costs...
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
  • Help with managerial accounting?? Karney Company has revenues of $500,000, variable costs of $350,000, and fixed...

    Help with managerial accounting?? 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 unfits and sales dollars needed to break even. c. compute total sales dollars needed to achieve a target operating...

  • IHG Company produces widgets. The widgets are sold for $2.00 per unit to wholesalers Unit variable...

    IHG Company produces widgets. The widgets are sold for $2.00 per unit to wholesalers Unit variable cost are 60 % . For the year 2019, management estimates the following revenues and costs Selling expenses Selling expenses SGA expenses V SGA expenses- fix Sales Direct materials 70,000 75,000 30,000 1.100.000 530,000 460,000 Direct labor Manufacturing overhead- variable Manufacturing overhead -fixed 400,000 80,000 380,000 Instructions: (a) Compute the contribution margin ratio. (Round to the nearest full percent.) Compute the break-even point in...

  • Zoom Company produces widgets. The widgets are sold for $3.00 per unit to wholesalers. Unit variable...

    Zoom Company produces widgets. The widgets are sold for $3.00 per unit to wholesalers. Unit variable cost are 60%. For the year 2019, management estimates the following revenues and costs. $ Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Selling expenses - variable Selling expenses - fixed SGA expenses - Variable SGA expenses- fixed 2,500,000 630,000 560,000 350,000 480,000 80,000 85,000 40,000 100,000 5 Instructions: 6 (a) Compute the contribution margin ratio. (Round to the nearest full percent.) Instructions:...

  • Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable...

    Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company's annual fixed costs are $562,500. Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. If the company's fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even?Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable...

  • Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable...

    Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable costs are $192 per unit. The company's annual fixed costs are $734,400. Management targets an annual pretax income of $1,200,000. Assume that fixed costs remain at $734,400. Answer is complete but not entirely correct. (1) Compute the unit sales to earn the target income. Units to Achieve Target Choose Denominator: Choose Numerator: Contribution margin per Units to achieve target Fixed costs plus pretax income...

  • Revenues $ 500,000 250,000 250,000 $ Cost of goods sold (all variable costs) Gross margin Operating...

    Revenues $ 500,000 250,000 250,000 $ Cost of goods sold (all variable costs) Gross margin Operating costs: Salaries fixed Sales commissions (9% of sales) Depreciation on equipment and fixtures Store rent ($4,500 per month) Other operating costs 190,000 45,000 14,000 54,000 50,000 353,000 $ (103,000) Operating income (loss) Neylon Men's Clothing's revenues and cost data for 2017 are as follows: Click the icon to view the data.) Mr. Neylon, the owner of the store, is unhappy with the operating results....

  • Compute the missing amounts for the following table. B (Click the icon to view the table.)...

    Compute the missing amounts for the following table. B (Click the icon to view the table.) Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.) A $ 100 40 72,000 180,000 Sale price per unit Variable costs per unit Total fixed costs Target profit Calculate: Contribution margin per unit Contribution margin ratio Required units to break even Required sales dollars to break even Required units to achieve target profit % i Data Table - A B...

  • Blanchard Company manufactures a single product that sells for $100 per unit and whose total variable...

    Blanchard Company manufactures a single product that sells for $100 per unit and whose total variable costs are $76 per unit. The company's annual fixed costs are $338,400. Management targets an annual pretax income of $600,000. Assume that fixed costs remain at $338,400. (1) Compute the unit sales to earn the target income Choose Numerator: Choose Denominator: | = | Units to Achieve Target Contribution margin per unitUnits to achieve target Fixed costs plus pretax income (2) Compute the dollar...

  • Select all that apply Company A has sales of $500,000 variable costs of $350,000, and fixed...

    Select all that apply Company A has sales of $500,000 variable costs of $350,000, and fixed costs of $150,000. Company A has: a contribution margin equal to fixed costs reached the break even point eared a net operating profit incurred a net operating loss

  • How are variable costs calculated in requirement 4 on the income statement? (3,575,000) British Productions performs...

    How are variable costs calculated in requirement 4 on the income statement? (3,575,000) British Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There year. No additional shows can be held as the theater is also used by other production companies. The avera cast of 65, each earning a net average of $340 per show. The cast is paid after each show. The other variable program-printing cost of $8 per guest. Annual fixed costs total...

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