FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of $21. The company's monthly fixed expenses are $29,400. A. What is the company's break-even point in units? Break-even units 600 units B. What is the company's break-even point in dollars? Break-even dollars $49.00 C. Construct a contribution margin income statement for the month of September when they will sell 800 units. Use a minus sign for a net loss if present. Income Statement Sales $56,000 Variable Costs -16,800 Contribution Margin $39,200 Fixed Costs -29,400 Net Income $9,800 D. How many units will Maple need to sell in order to reach a target profit of $44,100? New break-even units _____ units E. What dollar sales will Maple need in order to reach a target profit of $44,100? New break-even dollars $_____ F. Construct a contribution margin income statement for Maple that reflects $140,000 in sales volume. Income Statementarrow_forwardSuppose that a company has fixed costs of $22 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced? Round your answer to the nearest cent. Fixed costs per unit $fill in the blank 1arrow_forwardA company sells one of the items in its product line for $8.50 each. The variable costs per unit is $4.80, and the associated fixed costs per week are $2,100. If the total revenue is $8,075 per week, then determine each of the following quantities: (1) The weekly level of output, that is the number of items produced and sold, is units. (2) The total variable costs per week are $ (3) The net income per week is $arrow_forward
- A company has monthly fixed costs of $135,000. The variable costs are $5 per unit. If the sales price of a unit is $12 and we sell 7,500 units, the company's average fixed costs per unit will be OA. $23 per unit. OB. $7 per unit. OC. $18 per unit. OD. $5 per unit.arrow_forwardMukharrow_forwardYour Company has a limit of 65,000 machine hours for the production. It produces three products, with costs and selling prices as follows: Products C Demand in units 20,000 18,000 15,000 Selling price per unit $30 $20 $15 CM ratios 35% 25% 60% 3. 3 MH per unit What is the maximum contribution margin Your Company can make?arrow_forward
- For a table manufacturing company, variable cost is $125.00 per Unit, rent is $2,544.00 per month and insurance is $1,095.00 per month. Selling price for a table is $200.00 per Unit, How much is the company contributing to covering their fixed costs or generating profits? Submitarrow_forwardHelparrow_forward6. Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are as follows: direct materials = $14; direct labour = $8; variable overhead = $3; sales commission is 10% of price. Its fixed monthly costs are $42,000. Required: 1. Using the above cost data, set up a monthly cost equation. 2. What is the company’s contribution margin percentage? (Round your answer to 2 decimal places.)arrow_forward
- Help mearrow_forwardGiddings Company manufactures and sells a single product, Product G. The product sells for $60 per unit and has a contribution margin ratio of 40 percent. The company's monthly fixed expenses are $28,800. If the selling price is reduced by 5%, variable costs per unit reduced by $1.00, and fixed costs increased to a total of $40,750, how many units would need to be sold to earn operating income equal to 10% of sales revenue? (Ignore income taxes.)arrow_forwardRST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. RST desires to earn a profit of $20,000. The contribution margin per unit is $arrow_forward
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