A company reports the information below for the single product it produces and sells.Sales price per unitVariable costs per unitTotal fixed costs(1) Compute contribution margin per unit.$95$38$193,800Contribution margin(2) Compute the break-even point in units.Numerator1per unitper unitper unitDenominator(3) Compute income in dollars if 3,700 units are sold.XBreak EvenUnits= Break even unitsFixed costsIncome

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: A company reports the information below…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...

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Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of production of product 1, and x2 represents units of production of product 2. Producing one unit of product 1 requires 4 labor-hours, and producing one unit of product 2 requires 6 labor-hours. Currently, 24 labor-hours are available. The cost of labor-hours is already factored into the profit function, but it is possible to schedule overtime at a premium of 5 per hour. a. Formulate an optimization problem that can be used to find the optimal production quantity of products 1 and 2 and the optimal number of overtime hours to schedule. b. Solve the optimization model you formulated in part (a). How much should be produced and how many overtime hours should be scheduled?
A product has a sales price of $250 and a per-unit contribution margin of $75. What is the contribution margin ratio?
Given the following information for SAMAH Company, answer the following questions: RO 260 840 Units RO 145 R.O 620,000 Selling price (per unit) Number of units sold Variable cost (per unit) Fixed cost 1. Calculate contribution margin ratio 2. Find Breakeven Point in amount 3. Find Breakeven Point in units P =1
A company reports the following information for the single product it manufactures. Sales price Variable cost per unit Total fixed costs Target income (a) Compute contribution margin per unit. $ 230 per unit $ 161 per unit $ 986,700 per year $572,700 per year Contribution margin (b) Compute the break-even point in units. Numerator (c) Compute the unit sales to earn the target income. Numerator Denominator = Break-Even Units = = Break-even units Denominator = Units to Achieve Target = Units to achieve target
Crane Manufacturing Ltd. has provided you with the following CVP income statement. Sales (1,460 units) Variable costs: Cost of goods sold Selling expenses Administrative expenses Contribution margin Fixed costs: Cost of goods sold Selling expenses Administrative expenses Operating income $1,022,000 454,060 81,760 67,160 419, 20 153,300 52,560 33,580 $179,580 a. Calculate the contribution margin ratio. b. Calculate the break-even point in sales dollars and number of units.
i) the marginal revenue function for a company's product is MR = 40,000 - 4x ii) where x equals the number of units sold. if total revenue equal 0 when no units are sold, determine the total revenue function for the product. The function describing the marginal cost ( in dollars ) for producting a product is MC =8x +800 When x equals the number of units produced. it is known that cost equals $80,000 when 40 units are produced. determine the total cost function. iii) the function describing the marginal profit from producing and selling a product is MP = -6x + 450 when x equals the number of units and MP is the marginal profit measured in dollars. when 100 units are produced and sold, total profit equals $5000. determine the total profit function. iv) the functions describing the marginal profit from producing and selling a product is…
PE 1. Use the following economic data to answer the numbered questions: Total fixed costs P1.8M Unit selling price P80.00 Unit variable cost P56.00 Indicate the effect on the following by one unit increase in sales volume: 1. Breakeven units Total peso sales 3. Total contribution margin 4. Operating profit 5. Total costs 2.
Lamp Company has the following cost-volume-profit (CVP) data: Breakeven point, in units 3,000 Selling price per unit $ 600 Total fixed costs $ 124,000 What is the variable cost per unit (rounded to two decimal places)?
Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income tax
Profit Functions A company has a fixed cost of $26,000 and a production cost of $5 for each unit it manufactures. A unit sells for $10. Find the following functions (in dollars). (a) What is the cost function? C(x) = (b) What is the revenue function? R(x) = (c) What is the profit function? P(x) = (d) Compute the profit (loss), in dollars, corresponding to the following production levels. P(5,500) =$ P(8,800) =$ P(12,100) =$
A company’s product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit?A. $40B. $60C. $90D. $150

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