Blanchard Company manufactures a single product that sells for $175 per unit and whose totalvariable costs are $140 per unit. The company's annual fixed costs are $514,500(a) Compute the company's contribution margin per unit.Sales per unitLess: Variable cost per unitContribution margin(b) Compute the company's contribution margin ratio.Choose Numerator:Choose Denominator:Contribution Margin RatioContribution margin ratio(c) Compute the company's break-even point in units.Choose Numerator:Choose Denominator:Break-Even UnitsBreak-even units(d) Compute the company's break-even point in dollars of sales.Choose Numerator:Choose Denominator:Break-Even DollarsBreak-even dollars%3D

Selling price per unit =$175 Variable cost per unit=$140 Annual fixed cost=$514,500 Contribution…

Answered: Blanchard Company manufactures a single…

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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Stancil Dry Cleaners has determined the following about its costs: Total variable expenses are$42,000,total fixed expenses are $24,000, and the sales revenue needed to break even is $48,000. Determine the company's current 1) sales revenue and 2) operating income. (Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.) Use the contribution margin income statement and the shortcut contribution margin approaches to determine Stancil's current (1) sales revenue and (2) operating income. Begin by computing the contribution margin ratio. (Enter the result as a whole number.) The contribution margin ratio is %.
If selling price is $150 per unit, variable cost is $81 per unit, and fixed cost is $240, calculate the contribution margin ratio.
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,480 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit 161 34 24 19 $138 Fixed costs: Factory overhead Selling and administrative expenses Voice Com desires a profit equal to a 14% return on invested assets of $600,700. a. Determine the amount of desired profit from the production and sale of 5,400 cell phones. 84,098 ✔ $201,600 71,600 b. Determine the product cost per unit for the production of 5,480 cell phones. Round your answer to the nearest whole dollar. 156 ✔ per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. X%
Molly Company sells 29,000 units at $48 per unit. Variable costs are $27.36 per unit, and fixed costs are $323,200. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
Bluegill Company sells 15,500 units at $220 per unit. Fixed costs are $170,500, and operating income is $1,534,500. Determine the following: a. Variable cost per unit b. Unit contribution margin c. Contribution margin ratio $ per unit %
The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income (a1) Blanc Company Noir Company $505,000 $505,000 303,000 252,500 252,500 242,400 $10,100 * Your answer is incorrect. Blanc Company 202,000 191,900 $10,100 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Noir Company Contribution Margin Ratio 40% 50%
The following information relates to the operations of a company; cost per unit from supplier- GH¢80, variable cost per unit GHC40 and total fixed cost of GHC300000. The company determines its selling price by adding a margin of 20%. What is the breakeven quantity? A. 5556units B. 6665units OC. 5000units D. 6000units
Stonebraker Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (9,300 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 306,900 204,600 102,300 77,500 $ 24,800 Required: a. If sales increase to 9,370 units, what would be the estimated increase in net operating income? b. If the variable cost per unit increases by $7, spending on advertising increases by $3,500, and unit sales increase by 20,500 units, what would be the estimated net operating income? c. Estimate how many units must be sold to achieve a target profit of $36,460.
Rahul
The following income statement applies to Finch Company for the current year: Income Statement Sales revenue (480 units × $30) $ 14,400 Variable cost (480 units × $15) (7,200 ) Contribution margin 7,200 Fixed cost (4,000 ) Net income $ 3,200 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Finch
XYZ Company's product has a contribution margin per unit of $11.25 and a variable cost ratio of 60%. What is the selling price of the product? Select one: a. $28.125. b. $22.5. c. $37.5. d. $40. e. $50.
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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