Assume the following information for a product line: Sales $700,000 Variable cost of goods sold 185,000 Direct fixed overhead 115,000 Variable selling and administrative expenses 70,000 Direct fixed selling and admin. expenses 90,000 ​ What is the segment margin of the product line? a. $200,000 b. $325,000 c. $350,000 d. $240,000

Determine the missing amounts. 1. 2. 3. $ Unit Selling Price $800 $350 (e) $ $ Unit Variable Costs $336 (c) (f) $ Unit Contribution Margin $147 $800 (a) Contribution Margin Ratio % (b) % (d) 40 %

3

A company’s standard product cost is $9 per unit. Actual production costs were $11 per unit. The firm made 20 units and sold 17 units. The firm’s cost of goods sold was Select one: a. $220. b. $187 c. $153 d. $180

A. Determine the missing amounts S.No Unit Selling Price Unit Variable Cost Contribution Margin per unit Contribution Margin Ratio 1 2 3 550 1500 (e) 370 (c) (f) (a) 600 900 (b) (d) 30     B. For Al Farabi Company, variable costs are 75% of sales, and fixed costs are $210,000.Management’snet income goal is $70,000. Compute the required sales needed to achieve management’s target net income of $70,000. (Use the mathematical equation approach.) C. Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain.

how do I explain this? Metric                                                        Score                               Percent of Total Possible             Contribution Margin                                       4.7                                      /5      Plant Utilization                                             5.0                                      /5 Days of Working Capital                                5.0                                      /5      Stock-out Costs                                              5.0                                     /5         Inventory Carrying Costs                                3.6                                     /5 Overall  Score                                                 23.3                                  /25

ALL Acme Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor $172 0 9,700 9,300 400 Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $33 $75 $21 $25 $145,500 $ 10,300

(e)                                                Product Blue                      Product Red    Selling                                              $12.00                                $24.00Variable cost                                     $4.00                                 $8.00Contribution margin                          $8.00                                 $16.00Fixed costs apportioned                      $200,000                           $400,00Budgeted Sales Units                          140,000                               60,000 Calculate the breakeven points, for each product and the company as a whole and comment on your findings f)Discuss the merits and demerits of the cost volume profit analysis (CVP)