Exercise 3-3A (Algo) Contribution margin ratio LO 3-1Walton Company incurs annual fixed costs of $87,650. Variable costs for Walton's product are $26.00 per unit, and the salesprice is $40.00 per unit. Walton desires to earn an annual profit of $52,000.RequiredUse the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desiredprofit.Note: PoPo not round intermediate calculations. Round your final answers to the nearest whole number.Sales in dollarsSales volume in units

Contribution margin per unit = Sales price per unit - Variable cost per unitContribution margin…

Answered: Walton Company incurs annual fixed…

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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Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue, costs and sales data on the two products appear below. Bangus P400 Tupig P600 Selling price per unit Variable cost per unit Number of units sold monthly 240 120 200 units 300 units Fixed costs and expenses are P704,000 per month. Required: a. Average contribution margin ratio. b. Composite breakeven point in units and in pesos. c. Allocation of composite breakeven point in units. d. Assuming the company increases its fixed costs and expenses by P140,800, how many units of Bangus and Tupig should be sold at breakeven point? e. Refer to the original data, assuming the sales mix between Bangus and Tupig is 500 units for Bangus and 300 units for Tupig, what is the new combined breakeven point in units and in pesos? f. Consider the original data, except that Pangasinan Company based its sales mix in units. Determine the following: i. Average UCM. ii. Composite BEP in units and in pesos.
Exercise 3-2A (Algo) Per-unit contribution margin approach LO 3-1 Finch Corporation sells products for $32 each that have variable costs of $17 per unit. Finch's annual fixed cost is $345,000. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
QUESTION: Anna Inc. sells two products as follows: Product A Product B Units sold 3,800 4,750 Selling price per unit $300 $450 Variable costs per unit $120 $270 The company has the following fixed costs: Product A, $613,000, Product B, $1,023,000, and common fixed costs of $372,800. Using the above information answer the following questions. What is the package contribution margin? What is the break-even in packages? How many units of Product A are required to break-even? How many units of Product B are required to break-even?
Exercise number 2 - Cost-Volume-Profit Analysis Industrias Tainas manufactures and sells hammocks for $ 125 each. The variable cost for each hammock is $ 75. The total fixed cost is $ 240,000. REQUIRED 1. Determine the breakeven point in units and in dollars. 2. Determine the number of hammocks that must be sold to achieve a pre-tax profit of $ 60,000. 3. If the variable cost per unit increased to $ 85 and the total fixed cost increased to $ 250,000, how many units would the business need to sell to achieve the profit (before taxes) of $ 60,000. 4. How much must the selling price have to increase to make the profit of $ 60,000 with the same number of units calculated in question number 2?
Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.25/unit) Gross profit Operating expenses: Selling ($1,200 + $0.10/unit) Administrative ($3,500 + $0.20/unit) Operating income $34,400 22,775 $ 11,625 1,950 5,000 $ 4,675 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to 1. 11,250 units. 2. 3,750 units. d. Refer to your answer to part a for total revenues of $34,400. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase by $14,500. 2. Decrease by $3,000.
es Bloom Company management predicts that it will incur fixed costs of $259,000 and earn pretax income of $493,100 in the next period. Its expected contribution margin ratio is 69%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of total dollar sales. Dollar Sales Choose Numerator: Choose Denominator: * Heimil = Total Dollar Sales Total dollar sales = Required 2 >
G http Chapter Review My... Sales price Contribution margin ratio Fixed costs Tra.. Vernon Company reported the following data regarding the product it sells: a. Break-even point in dollars a. Break-even point in units b. Sales in dollars b. Sales in units c. Break-even point in dollars c. Break-even point in units $60 Man... $ 10% $216,000 M Questio... Required Use the contribution margin ratio approach and consider each requirement separately. b Ans... 2,160,000 36,000 Bes... Saved a. What is the break-even point in dollars? In units? b. To obtain a profit of $54,000, what must the sales be in dollars? In units? c. If the sales price increases to $72 and variable costs do not change, what is the new break-even point in dollars? In units? US fron.
PROBLEM 7 Tito Company sells several products. Information of average revenue and costs are as follows: Selling price per unitPhp20.00 Variable costs per unit: Direct materialsPhp4.00 Direct manufacturing labor Php1.60 Manufacturing overhead Php0.40 Selling costsPhp2.00 Annual fixed costs Php96,000 26. Calculate the contribution margin per unit. 27. Calculate the number of units Tito's must sell each year to break even. 28. Determine the breakeven point in peso. 29. Calculate the number of units Tito's must sell to yield a profit of Php144,000. PROBLEM
Question 3 Contribution Margin Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Round to one decimal place.) fill in the blank 1 % b. Unit contribution margin $fill in the blank 2 per unit c. Income from operations
Question 2 Polk Company developed the following information for its product: Per Unit Sales price $90 Variable cost 63) Contribution margin $27 Total fixed costs $1,080,000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. How many units must be sold to break even? What is the total sales that must be generated for the company to earn a profit of $60,000? If the company is presently selling 45,000 units, but plans to spend an additional $108,000 on an advertising program, how many additional units must the company sell to earn the same net income it is now making? Using the original data in the problem, compute a new break-even point in units if the unit sales price is increased 20%, unit variable cost is increased by 10%, and total fixed costs are increased by $210,000.
Question #1 Copr. Goed Select financial data for Bora Co. are presented below. Sales quantity 400 units Sales $90 per unit Variable costs $36 per unit Fixed costs $9,000 if variable costs increase by $6 per unit and fixed costs increase by $900, what is the adjusted contribution margin ratio? 46.7% 60% 40% 53.3% BACK SUBMIT A
Page 5 NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and of Bona is P2. The total fixed costs is P420,000. The selling price of Avon is P10 and Bona is P8. Compute for the following: a. Weighted contribution margin per unit b. Weighted contribution margin ratio. Round-off to 4 decimal places. c. Break-even point in units. d. Break-even point in sales e. Break-even point in pesos for Avon f. Break-even point in pesos for Bona.

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