Homework Answers
The greater the ratio of Variable costs to sales, the lower the Gross Contribution and hence, more units must be sold to cover the fixed charges;
Answer: more units must be sold to cover the fixed charges;
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The greater the ratio of variable costs to sales (i.e. variable cost is a higher percentage...
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...
Spring Company’s cost structure is dominated by variable costs with a contribution margin ratio of 0.40...
Spring Company’s cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $88,500. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, Winters Company, is dominated by fixed costs with a higher contribution margin ratio of 0.70 and fixed costs of $265,500. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $590,000 per month. Required:...
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of...
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $78,000. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $338,000. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $650,000 for the month....
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of...
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $46,200. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $354,200. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $770,000 for the month....
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of...
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $107,200. Every dollar of sales contributes 45 cents toward fixed costs and profit. The cost structure of a competitor, One- Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.70 and fixed costs of $274,700. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $670,000 for the...
The Greenback Store’s cost structure is dominated by variable costs with a contribution margin ratio of...
The Greenback Store’s cost structure is dominated by variable
costs with a contribution margin ratio of 0.40 and fixed costs of
$100,800. Every dollar of sales contributes 40 cents toward fixed
costs and profit. The cost structure of a competitor, One-Mart, is
dominated by fixed costs with a higher contribution margin ratio of
0.70 and fixed costs of $244,800. Every dollar of sales contributes
70 cents toward fixed costs and profit. Both companies have sales
of $480,000 for the month....
A) Further analysis of McCartney Manufacturing’s fixed costs revealed that the company actually faces annual fixed...
A) Further analysis of McCartney Manufacturing’s fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $2.40 per unit; direct labor costs, $3.00 per unit; and variable overhead costs, $0.60 per unit. At this time, the selling price of $20 will not change. Complete the following formulas for the revised fixed costs. Enter the ratio as a percentage. Contribution...
A A A Aa A A2A Styles Dictate ! Styles Pane Term Cost-volume- profit analysis Definition...
A A A Aa A A2A Styles Dictate ! Styles Pane Term Cost-volume- profit analysis Definition The proportion of products based upon the number of units sold. The proportion of products sold based on total sales revenue. Analysis that focuses on relationships among revenue, volume, mix of units sold, variable and fixed costs. Analysis that focuses on determining the number of units or " sales revenue required to generate a desired net income Analysis that focuses on determining the number...
A) Further analysis of McCartney Manufacturing’s fixed costs revealed that the company actually faces annual fixed overh...
A) Further analysis of McCartney Manufacturing’s fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $2.40 per unit; direct labor costs, $3.00 per unit; and variable overhead costs, $0.60 per unit. At this time, the selling price of $20 will not change. Complete the following formulas for the revised fixed costs. Enter the ratio as a percentage. Contribution...
Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost...
Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs 174 $ 86 $563,200 Required Determine the following: a. Contribution margin per unit. Contribution margin per unit b. Number of units that Ender must sell to break even. Break-even in units c. Sales level in units that Ender must reach to earn a profit of $299,200. Sales in units d. Determine the margin of safety...
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...
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $78,000. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $338,000. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $650,000 for the month....
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $46,200. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $354,200. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $770,000 for the month....
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $107,200. Every dollar of sales contributes 45 cents toward fixed costs and profit. The cost structure of a competitor, One- Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.70 and fixed costs of $274,700. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $670,000 for the...
The Greenback Store’s cost structure is dominated by variable
costs with a contribution margin ratio of 0.40 and fixed costs of
$100,800. Every dollar of sales contributes 40 cents toward fixed
costs and profit. The cost structure of a competitor, One-Mart, is
dominated by fixed costs with a higher contribution margin ratio of
0.70 and fixed costs of $244,800. Every dollar of sales contributes
70 cents toward fixed costs and profit. Both companies have sales
of $480,000 for the month....
A A A Aa A A2A Styles Dictate ! Styles Pane Term Cost-volume- profit analysis Definition The proportion of products based upon the number of units sold. The proportion of products sold based on total sales revenue. Analysis that focuses on relationships among revenue, volume, mix of units sold, variable and fixed costs. Analysis that focuses on determining the number of units or " sales revenue required to generate a desired net income Analysis that focuses on determining the number...
Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs 174 $ 86 $563,200 Required Determine the following: a. Contribution margin per unit. Contribution margin per unit b. Number of units that Ender must sell to break even. Break-even in units c. Sales level in units that Ender must reach to earn a profit of $299,200. Sales in units d. Determine the margin of safety...
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