1. Calculate the contribution margin rate, the sales dollar breakeven point, and the unit sales breakeven point. 2. Use the following information to perform your calculations. a. Net Sales: $50,000.00 b. Contribution Margin: $20,000.00 c. Total Fixed Costs: $15,500.00 d. Unit Sales Price: $25.00 3. Provide the formula and write out the equation that you use for each calculation. a. Contribution Margin Rate: b. Sales Dollar Breakeven Point: c. Unit Sales Breakeven Point:

1. Calculate the contribution margin rate, the sales dollar breakeven point, and the unit sales breakeven point. 2. Use the following information to perform your calculations. a. Net Sales: $50,000.00 b. Contribution Margin: $20,000.00 c. Total Fixed Costs: $15,500.00 d. Unit Sales Price: $25.00 3. Provide the formula and write out the equation that you use for each calculation. a. Contribution Margin Rate: b. Sales Dollar Breakeven Point: c. Unit Sales Breakeven Point:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Refer to the pictur ebelow: Find: 1. Total Cost of Product A under ABC System2. Total Cost of Product B under ABC System3. Selling Price per unit of Product B assuming profit margin of 20% above cost
Assume that the linear cost and revenue models apply. An item costs $13 to make. If fixed costs are $1600 and profits are $5700 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.)R(x) =
4. What if the average price per unit increased to $25.50? Recalculate the following: a Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. C. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.
1. Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65. PLEASE NOTE: The per-unit Contribution Margin will be rounded in whole dollars and shown with "$" and commas as needed (i.e. $12,345). A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio? PLEASE NOTE: The Contribution Margin Ratio will be shown as a percentage, shown with "%" and rounded to three decimal places (i.e. 12.3%).
(a) Build a spreadsheet model to calculate the profit/loss for a given demand. What is the demand? (b) Use Goal Seek to calculate the price that results in breakeven. If required, round your answer to two decimal places. c) Use a data table that varies price from 350 to 3400 in increments of 325 to find the price that maximizes profit.
Assume that the situation can be expressed as a linear cost function. Find the cost function in this case. Marginal cost: $60; 120 items cost $8000 to produce. The linear cost function is C(x)= FEE
If the variable cost is P15/unit, fixed cost is 265,000; and Sales is P55. Find the BEPs, and BEPx. Use the Target Profit Analysis Equation Method. Compute for the following: • Contribution Margin Ratio • Break-Even Point in Sales • Break-Even Point in Units IMPORTANT NOTE: PLEASE REFER TO THE GIVEN LESSON. USE THE FORMULA FROM THE LESSON IN THE PHOTE ATTACHED. THANK YOU. I will give you upvote for this.
a) Determine the variable cost per unit and the fixed cost using the high-low method.b) What is the equation of the total mixed cost function?c) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scaleof 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.
APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company's product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a per-unit basis.…
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See information in attached image. Questions: Calculate the total fixed selling and administration costs. Calculate the contribution per unit Assuming a contribution of R150 and total fixed costs of R1 600 500, calculate the break-even point in units. Round your answer to the nearest whole unit. Using the information provided in the question and your answer above, calculate the margin of safety percentage. Round your answer to two decimal places.
Q-2) Using the quick and dirty method, what is the approximate monthly fixed cost? the approximate variable cost per unit processed? show your computations.