Correct Option C i.e. Profit = Unit contribution margin * quantity - Fixed Expense
Why other options are incorrect:
Option A 's formula is useful to calculate break even sales and not target profit
Option B's takes us no where, this given equation is incorrect.
If we would like to meet a specific profit goal, the formula to calculate the number...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
Only Answer Exercise 2 and 3 please. After completing Exercise 2, What is the number of units needed to achieve the desired profit? After completing Exercise 3- situation 1, what is the number of units needed to achieve the desired profit? See circle on the photos below for exercise 2 and 3 Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per...
The following diagram is a cost-volume-profit graph for a manufacturing company: 4 o The formula to determine the Y-axis value ($) at point D on the graph is Oa. Fixed costs/Unit contribution margin. Ob. Fixed costs/Contribution margin ratio. Oc. Fixed costs + (Variable costs per unit x Number of units). Od. EXY - BEX.
Question 6 e and f 5) Base scenario calculations: Using the Profit Formula calculated in 5) above, calculate the following assuming TrucBeat produces and sells 6,000 units as their "base" scenario Sales Revenue 6,00 SIL - 3.045,00 Net Operating Income 1,778. Ob Contribution Margin 2.052/ Contribution Margin Contribution Margin percent 2.082,0/3,091,00 87.252 Break-even in units 304,0*/62087, 00/000304,00) 347 976 units Break-even in dollars 3040/67.25 452,046 Margin of safety in units 6.400- 76+ 5.124 wnik Margin of safety percent (3.06,0 -...
1. Using the annual profit formula Y =b(x) - a, the b represents: Select one: a. Annual before-tax profit b. Annual fixed costs c. Contribution margin per unit d. Variable costs per unit 2. Using the annual profit formula, Y = b(x) - a, the a represents: Select one: a. Variable costs per unit b. Annual fixed costs c. Total profit d. Total annual units sold 3. Using the annual profit formula, Y = b(x) - a, what is the...
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...
3 (a) Calculate variable cost per unit. Current Designs.xls Data Review View Home Insert Page Layout Formulas Kevlar Kevlar Resin and supplies Finishing kit (seat, rudder, ropes, etc.) Labor Selling and administrative expenses - variable Total variable costs per unit 2 Resin and supplies 3 Finishing kit (seat, rudder, ropes, etc.) 4 Labor 5 Selling and administrative expenses variable 6 Selling and administrative expenses—fixed 7 Manufacturing overhead-fixed $250 per kayak $100 per kayak $170 per kayak $420 per kayak $400...
A contribution margin income statement organizes costs by behavior (variable or fixed), rather than by function (operating, selling, or administrative). The contribution margin is the difference between sales and variable expenses. Byron Manufacturing has one product that sells for $24.00 per unit. The company estimates fixed costs at $6,000, direct materials at $4.00 per unit, direct labor at $5.00 per unit, and variable overhead costs at $3.00 per unit. Fill in the contribution margin income statement when 730 units are...
Handout 2 ACCT 5140 - Cost Accounting Chapter 3 - Cost Volume Profit (CVP) Analysis Powell Company manufactures a product that it sells for $20 per unit. For 2020 the company expects to produce 30,000 units and sell 28.000 units. Variable manufacturing costs will be $8 per unit and variable selling expense $4 per unit. Total fixed manufacturing costs will be $120,000 and total fixed selling & administrative expense $60,000. The company's tax rate is 20%. Required: 1. Prepare a...
Contribution Margin Income StatementA contribution margin income statement organizes costs by behavior (variable or fixed), rather than by function (operating, selling, or administrative). The contribution margin is the difference between sales and variable expenses .Byron Manufacturing has one product that sells for $24.00 per unit. The company estimates fixed costs at $6,000, direct materials at $4.00 per unit, direct labor at $5.00 per unit, and variable overhead costs at $3.00 per unit.Fill in the contribution margin income statement when 730...