Arberg Company's controller prepared the following budgeted income statement for the coming year: Sales ........................$415,000 Total variable cost .........302,950 Contribution margin......$112,050 Total fixed cost ..............64,800 Operating income .........$47,250 Required: 1. What is Arberg's variable cost ratio? What is its Contribution margin ratio? 2. Suppose Arberg's actual revenues are $30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement. 3. How much sales revenue must Arberg earn to break even? Prepare a Contribution margin income statement to verify the accuracy of your answer. 4. What is Arberg's expected margin of safety? 5. What is Arberg's margin of safety if sales revenue is $380,000?

What is the budgeted total unit cost and multiple step income statement given the information below? Sales for the company's year were 1M units with 22% sold in Q1, 23% sold in Q2, 27% sold in Q3 and 28% sold in Q4. Units sold in Q4 were sold for $46 per unit while the rest of the year's units were sold for $40 per unit. Management desires to maintain ending finished goods inventories of 19% of next quarter's budgeted sales volume. Direct materials for each unit requires 2 pounds of materials at $9 per pound and management maintains raw material inventories at 20% of the next quarter's production requirements. Production requirements for the first quarter of next year are 505,000 pounds. The company budgets 0.3 hours of direct labor per unit with labor costs of $11 per hour. Manufacturing overhead is $18 per direct labor hour and selling and administrative expenses for the year are $6,793,000.

... 近 RequIred Informatlon [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,300, 14,000, 16,000, and 17,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c. The ending finished goods inventory equals 25% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods reguires5 pounds of raw materials. The raw materials cost $2.00 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two…

Rawlings Company prepared the following budget information for the coming year: Product A Product B Product C Sales $5,714 $1,000,000 $177,777 Variable exp. 25.714 800.000 97.777 Contrib. mar. S60.000 $200.000 S80.000 Fixed exp. Net income The budget assumes the sale of 20,000 units of A, 100,000 units of B, and 80,000 units of C. Fixed Expenses for the company are $255,000. What is the company's combined contribution margin ratio rounded to two decimal places. O 0.21 O 0.27 0.23 0.36