Draw V Type here to search Read aloud 7-2B-CVP Analysis, "What if?" Analysis Kevin Co.'s projected contribution-format income statement for the upcoming month is shown below: Sales (500 units) Variable expenses Contribution margin local or shared file Fixed expenses Net operating income $10,000 4,000 6,000 1,000 $5,000 Required: a.) Compute the breakeven point in units. b.) Compute the breakeven point in dollars. c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month? d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms. e.) The company's manager thinks that adding a salaried sales staff member at a cost of $2,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change? f.) Refer to the original data, the company's manager believes that a new production process will improve profitability He plans to add new machinery that wi

Draw V Type here to search Read aloud 7-2B-CVP Analysis, "What if?" Analysis Kevin Co.'s projected contribution-format income statement for the upcoming month is shown below: Sales (500 units) Variable expenses Contribution margin local or shared file Fixed expenses Net operating income $10,000 4,000 6,000 1,000 $5,000 Required: a.) Compute the breakeven point in units. b.) Compute the breakeven point in dollars. c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month? d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms. e.) The company's manager thinks that adding a salaried sales staff member at a cost of $2,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change? f.) Refer to the original data, the company's manager believes that a new production process will improve profitability He plans to add new machinery that wi

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 5CE: Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and...

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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.…
Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margini 30,000 Less fixed expenses -22,500 Net income 7,500 Required: Calculate with workings: a. The contribution margin ratio in percentage. b. Three breakeven point in total sales ringgits.
2. ritpait a contribution total income statement on the quarter and March 31. 3. What was the contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the quarter ended March 31. The Alpine House, Incorporated Contribution Format Income Statement Variable expenses: Fixed expenses: ||
Jilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false eBook Show Me How Contribution Margin Ratio a. Young Company budgets sales of $1,280,000, fixed costs of $66,200, and variable costs of $294,400. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 52%, sales were $682,000, and fixed costs were $262,430, what was the operating income? Check My Work 2 more Check My Work uses remaining, B Previous Next
-now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... eBook Show Me How + Contribution Margin Ratio a. Imelda Company budgets sales of $1,010,000, fixed costs of $54,500, and variable costs of $242,400. What is the contribution margin ratio for Imelda Company? (Enter your answer as a whole number.) % : b. If the contribution margin ratio for Peppa Company is 40%, sales were $584,000, and fixed costs were $182,210, what was the income from operations? Oct 26
Consider the following information available for Barium Company: Total fixed costs $1,440,000 Contribution margin ratio 0.30 Based on the given information, calculate the sales revenue needed to achieve a target profit of $360,000. a.$6,250,000 b.$5,750,000 c.$5,000,000 d.$6,000,000
Question 2: Kevin Co.’s projected contribution-format income statement for the upcoming month is shown below: Sales (500 units) $10,000 Variable expenses 4,000 Contribution margin 6,000 Fixed expenses 1,000 Net operating income $5,000 Required: Compute the breakeven point in units. 2Compute the breakeven point in dollars. 3. If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month? 4. Compute the company’s margin of safety. State your answer in both dollar and percentage terms. 5. The company’s manager thinks that adding a salaried sales staff member at a cost of $2,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change? 6. Refer to the original data, the company’s manager believes that a new production process will improve profitability. He plans to add new machinery that will cut…
cost accounting quiz chapter 5 (1) - Windows Photo Viewer File Print E-mail Burn - Open - Olyphant, Inc. has provided the following data: Sales price Sales Fixed cost Variable cost $200 per unit 6,000 units $300,000 $100 per unit If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, which is the expected change in net operating income? A decrease of $60,000 An increase of $60,000 An increase of $120,000 An increase of $420,000 Page 1 of 4 48 F Sunny = here to search 4いBしCCE
Fill in the blanks for each of the following independent cases. (Click the icon to view the cases.) (For entries with a $0 balance, make sure to enter "0" in the appropriate cell. Round the contribution margin percentage to the nearest whole percent.) Variable Fixed Costs Costs Case Revenues a. $ Data table Case 400 Case a. Case b. Case c. Case d. $ 2,900 $ $ $ Total Costs 1,000 $ 1,800 Variable Fixed Total Revenues Costs Costs Costs 600 $ 400 Operating Income 800 Print $ 200 1,400 $ 200 $ Margin Percentage Contribution $ 1,000 600 $ $ Done % Operating Income 1,400 1,300 Contribution Margin Percentage 50% X
ok ht nt ences Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 63,900 42,600 $ 21,300 Makeover Total $ 149,100 $ 213,000 106,500 149, 100 #1 $ 42,600 63,900 51,120 $ 12,780 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's the two products. even point that shows the appropriate levels of sales for
content/qualsims/accounting/cost_volume_profit/v2/player/#/891e73d6eefafa67438268e177eaa497_qualsimsaccountingcost_volume_profitmiller_nobles_mattis 75 Tumblers Sora per month Sales Revenue Less: Variable Expenses Contribution Margin Less: Fixed Expenses Operating Income Total Per Unit $ 2,250 $ 30 1,350 18 $ 900 $ 12 250 $ 650 In order to determine how much contribution margin is earned for each $1 of sales, what is the contribution margin ratio on your tumbler sales? Round to the nearest whole number. Select an option from the choices below and click Submit. ○ 29% ○ 40% ○ 250% Submit