Contribution margin per unit= total contribution/number of units
=150000/150000
=$1
Breakeven point in units= total fixed cost/contribution margin per unit
= 105000/1 = 105000 units
Contribution margin ratio= contribution margin per unit/selling price
= 1/4 = 25%
Break-even sales= break-even point in units* selling price per unit
= 105000*$4
= $420,000
Margin of safety= (actual sales-break-even sales)/actual sales *100
=(600000-420000)/600000 * 100
=30%
Biomed Pte Ltd produces a variety of syringes for the medical industry. One department makes a special syringe. The pro...
Gary's Florist CVP Income Statement For the Year Ending December 31, 2017 Total Per Unit Sales Revenue $ 40.00 Variable Costs $ 31.00 Contribution Margin $ 9.00 Fixed Costs $151,875.00 Net Income Units Sold: Need to create formulas in the appropriate locations for all remaining elements except Units Sold, which should remain blank Also need to use Goal Seek to determine the breakeven unit sales
CVP analysis
Gary's Florist
CVP Income Statement
For the Year Ending December 31, 2017
Total
Per Unit
Sales
Revenue
Variable
Costs
Contribution Margin
Fixed
Costs
Net
Income
Units
Sold:
Sales Revenue Per Unitt som Variable costs per unit $31 . Fixed Costs $151,875 * Create formulas in the appropriate locations for all remaining elements except Units Soid, which should remain blank. Use Goal Seek to determine the breakeven unit sales. Create a second CVP Analysis tab (named appropriately) and use...
Benson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual production costs for 10,000 units of product, computations for the sales price per clock follow: $150,000 50,000 Unit-level costs Fixed costs Total cost (a) Markup (a x 0.25) Total sales (b) 200,000 50,000 $250,000 25 Sales price per unit (b 10,000) Required a. Benson has excess capacity and receives a special order for 7,000 clocks...
Computer Accessories Pro Forma Contribution Margin For the year ending December 31, 2019 Second First Quarter Quarter $352,000 $286,000 Fourth Third Quarter Quarter $319,000 $440,000 Annual Total $1,397,000 Sales Revenue Less Variable Costs: Cost of Goods sold Selling and Administrative expenses Total Variable costs $249,600 $19,200 $268,800 $202,800 $15,600 $218,400 $226,200 $17,400 $243,600 $24,000 $336,000 $990,600 $76,200 $1,066,800 Contribution margin $83,200 $67,600 $75,400 $104,000 $330,200 Less Fixed Costs: Manufacturing Overhead Selling and Administrative Expenses Total Fixed Costs Net Income $40,000...
please answer all parts to the question.
The Marx Company produces a 10-inch chef knife used by commercial chefs. The knives sell for $200 each. In 2020, the company produced 10,400 units and sold 8,300 units. There was no beginning inventory. Following are variable and full costing income statements for 2020 Income Statement Prepared Using Variable Costing Marx Company Income Statement For the Year Ending December 31, 2020 Sales $1,660,000 Less variable costs: Variable cost of goods sold $820,000 Variable...
CVP with Activity-Based Costing and Multiple Products Busy-Bee Baking Company produces a variety of breads. The plant manager would like to expand production into sweet rolls as well. The average price of a loaf of bread is $1. Anticipated price for a package of sweet rolls is $1.50. Costs for the new level of production are as follows: Cost Driver Unit Variable Cost Level of Cost Driver Loaf of bread $0.65 — Package of sweet rolls $0.93 — Setups $300 ...
Discontinue?
Chapter 8: Dropping a product line The managers at Manchester's Department Store are concerned about the operation of its sporting goods department, which has not been very successful. The following condensed income statement gives the latest year's results: Manchester Department Store Contribution Margin Income Statement For the Year Ended December 31 Product Lines Sporting Goods $480,000 $385,000 $95,000 All Other Departments $2,400,000 $1,560,000 $840,000 Totals Sales Revenue $2,880,000 $1.945,000 $935,000 Less: Variable Costs: Contribution Margin Less: Fixed Costs Manufacturing...
Part C: Deciding whether to discontinue a product, department, or store The income statement for Germain Appliances is divided by its two product lines, Toasters and Microwaves, as follows: Toaster Microwave Total Sales revenue ariable expenses Contribution margin Fixed expenses Operating income (loss) $620,000 $440,000 $180,000 $75,000 $105,000 $255,000 $210,000 $45,000 $75,000 $(30,000 $875,000 $650,000 $225,000 $150,000 $75,000 If Germain Appliances can eliminate fixed costs of $34,000 and increase the sale of Toasters by 6300 units at a selling price...
ment# (Chapters 14,5) i Saved 0 Income Statement Year ended December 31, 20XX Sales (30,000 tires at $45 each) Less: Variable costs (30,000 tires at $20) $ 1,350,000 600,000 Contribution margin Less: Fixed costs 750,000 600,000 oped Earnings before interest and taxes (EBIT) Interest expense 150,000 75,000 Tint Earnings before taxes (EBT) Income tax expense (30%) 75,000 22,500 rences $ 52,500 Earnings after taxes (EAT) Given this income statement, compute the following a. Degree of operating leverage (Round the final...
Styles Editing Problem 19-2B THIS is your "Bob-Homework" Prob 19-2B & Prob 19-3B (a) ALL FRUTE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2016 These problems are NOT in your textbook. Required: below this problem 8 (next page) are the "working papers" for you to complete and then subenit to the instructor-by the due date. Sales 2,500,000 Variable Expenses Optional: Below the Prob B "working papers" (scrolI 3 pages) are answers to similar, Prob A. If...