Homework Answers
Option C is correct i.e. an increase or decrease in fixed costs per unit.
Reason :-
Contribution margin = (sales price x sales volume) - variable cost
From the above equation, we can see that contribution margin affected by change in sale price, volume or variable cost.
It doesnt get affected by the change in fixed cost.
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UESTiON 13 A difference between the planned and actual contribution margin (CM) would not be caused by A an increa...
Select Audio Inc. Contribution Margin Analysis Sales For the Year Ended December 31 Effect of change...
Select Audio Inc. Contribution Margin Analysis Sales For the Year Ended December 31 Effect of change in sales: Sales quantity factor Unit price factor Total effect of change in sales Difference in sales quantity x Planned sales price Sales quantity factor Difference in sales price x Actual units sold Sales quantity factor ♡ EX 20-17 Contribution margin analysis-sales Prinz A A EXCEL TEMPLATE Obj. 5 Select Audio Inc. sells electronic equipment. Management decided early in the year to reduce the...
ey Formulas 1) Total Contribution Margin = Sales - Variable cost 2) Contribution margin ratio =...
ey Formulas 1) Total Contribution Margin = Sales - Variable cost 2) Contribution margin ratio = Contribution margin / sales 3) Break-even point in units = Fixed cost / unit contribution margir 4) Break-even point in dollars = Fixed cost / contribution margin ra 5) Margin of Safety = Actual Revenue less Breakeven Sales Rever 6) Total Sales = Number of units sold x selling price per unit 7) Total Variable cost = Number of units sold x variable cost...
Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and...
Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) CM per unit Situation a. II Situation b. Situation c. Situation d. Now select the labels to show the formula for breakeven point in units and then enter...
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A....
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A. increase income. B. decrease income. C. have no effect on income. D. increase fixed costs. E. decrease fixed costs.
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A. increase income. B. decrease income. C. have no effect on income. D. increase fixed costs. E. decrease fixed costs.
49. The contribution margin per unit and the contribution margin ratio will remain constant as long...
49. The contribution margin per unit and the contribution margin ratio will remain constant as long as: a. the selling cost remains the same. b. the cost of production and selling price changes. c. the sales revenue varies in direct proportion to volume. d. the volume of sales decreases. 50. The difference between sales and cost of goods sold equals ________. a. net profit b. profit after tax c. gross profit d. ...
Contribution Margin Analysis—Sales The following data for Romero Products Inc. are available: For the Year Ended...
Contribution Margin Analysis—Sales The following data for Romero Products Inc. are available: For the Year Ended December 31 Actual Planned Difference—Increase or (Decrease) Sales $2,294,000 $2,102,400 $191,600 Variable costs: Variable cost of goods sold $1,213,600 $1,108,800 $104,800 Variable selling and administrative expenses 236,800 230,400 6,400 Total variable costs $1,450,400 $1,339,200 $111,200 Contribution margin $843,600 $763,200 $80,400 Number of units sold 14,800 14,400 Per unit: Sales price $155 $146 Variable cost of goods sold 82 77 Variable selling and administrative expenses...
Saved Help E5-19 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO...
Saved Help E5-19 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5) 750 Riverside Inc, makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and sold 550 900 Total costs Variable costs $115,500 $157,500 $189,000 Fixed costs 198,000 199,000 198,000 Total costs $313,500 $355,500 $387,000 Cost per unit Variable cost per unit $ 210.00 $ 210.00 $ 210.00 Fixed cost per unit 360.00 264.00 220.00 Total cost per unit...
1. Soles quantity factor 512.200,000) PR 20-6A Contribution margin analysis Obj. 5 Farr Industries Inc, manufactures...
1. Soles quantity factor 512.200,000) PR 20-6A Contribution margin analysis Obj. 5 Farr Industries Inc, manufactures only one product. For the year ended December 31. the contribution margin increased by $560,000 from the planned level of $5,200,000. The presi- dent of Farr Industries Inc. has expressed concern about such a small increase in contribution margin and has requested a follow-up report. ERCE TEMPLATE Chapter 20 Variodu The following data have been gathered from the accounting records for the year ended...
E5-19 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statemen...
E5-19 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement (LO 5-5] Riverside Inc. makes one model of wooden canoe. Partial information for it follows: 700 850 Number of Canoes Produced and Sold 500 Total costs Variable costs $ 92,500 Fixed costs 178,500 Total costs $271,000 Cost per unit Variable cost per unit $ 185.00 Fixed cost per unit 357.00 Total cost per unit $ 542.00 $129,500 178,500 $308,000 $157,250 178,500 $335, 750 $ 185.00 255.00 $...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin?...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What would the company's monthly operating income be if the company sold 150,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 4. What is the breakeven point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 6. Management is currently...
Select Audio Inc. Contribution Margin Analysis Sales For the Year Ended December 31 Effect of change in sales: Sales quantity factor Unit price factor Total effect of change in sales Difference in sales quantity x Planned sales price Sales quantity factor Difference in sales price x Actual units sold Sales quantity factor ♡ EX 20-17 Contribution margin analysis-sales Prinz A A EXCEL TEMPLATE Obj. 5 Select Audio Inc. sells electronic equipment. Management decided early in the year to reduce the...
ey Formulas 1) Total Contribution Margin = Sales - Variable cost 2) Contribution margin ratio = Contribution margin / sales 3) Break-even point in units = Fixed cost / unit contribution margir 4) Break-even point in dollars = Fixed cost / contribution margin ra 5) Margin of Safety = Actual Revenue less Breakeven Sales Rever 6) Total Sales = Number of units sold x selling price per unit 7) Total Variable cost = Number of units sold x variable cost...
Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) CM per unit Situation a. II Situation b. Situation c. Situation d. Now select the labels to show the formula for breakeven point in units and then enter...
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A. increase income. B. decrease income. C. have no effect on income. D. increase fixed costs. E. decrease fixed costs.
7. Assuming no change in sales volume, an increase in company's per-unit contribution margin would: A. increase income. B. decrease income. C. have no effect on income. D. increase fixed costs. E. decrease fixed costs.
Saved Help E5-19 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5) 750 Riverside Inc, makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and sold 550 900 Total costs Variable costs $115,500 $157,500 $189,000 Fixed costs 198,000 199,000 198,000 Total costs $313,500 $355,500 $387,000 Cost per unit Variable cost per unit $ 210.00 $ 210.00 $ 210.00 Fixed cost per unit 360.00 264.00 220.00 Total cost per unit...
1. Soles quantity factor 512.200,000) PR 20-6A Contribution margin analysis Obj. 5 Farr Industries Inc, manufactures only one product. For the year ended December 31. the contribution margin increased by $560,000 from the planned level of $5,200,000. The presi- dent of Farr Industries Inc. has expressed concern about such a small increase in contribution margin and has requested a follow-up report. ERCE TEMPLATE Chapter 20 Variodu The following data have been gathered from the accounting records for the year ended...
E5-19 (Algo) Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement (LO 5-5] Riverside Inc. makes one model of wooden canoe. Partial information for it follows: 700 850 Number of Canoes Produced and Sold 500 Total costs Variable costs $ 92,500 Fixed costs 178,500 Total costs $271,000 Cost per unit Variable cost per unit $ 185.00 Fixed cost per unit 357.00 Total cost per unit $ 542.00 $129,500 178,500 $308,000 $157,250 178,500 $335, 750 $ 185.00 255.00 $...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What would the company's monthly operating income be if the company sold 150,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 4. What is the breakeven point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 6. Management is currently...
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