Break-Even in Sales Revenue, Margin of Safety Sports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of $12,400,000 last year, with total variable costs of $6,200,000 and fixed costs of $2,100,000. Required: 1. What is the contribution margin ratio for Sports-Reps based on last year's data? Round your answer to two decimal places. (Express as a decimal-based amount rather than a whole percent.) What is the break-even point in sales revenue? 2. What was the margin of safety for Sports-Reps last year? 3. One of Sports-Reps's agents proposed that the firm begin cultivating high school sports stars around the nation. This proposal is expected to increase revenue by $250,000 per year, with increased fixed costs of $123,400. Is this proposal a good idea?

Break-Even in Sales Revenue, Margin of Safety Sports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of $12,400,000 last year, with total variable costs of $6,200,000 and fixed costs of $2,100,000. Required: 1. What is the contribution margin ratio for Sports-Reps based on last year's data? Round your answer to two decimal places. (Express as a decimal-based amount rather than a whole percent.) What is the break-even point in sales revenue? 2. What was the margin of safety for Sports-Reps last year? 3. One of Sports-Reps's agents proposed that the firm begin cultivating high school sports stars around the nation. This proposal is expected to increase revenue by $250,000 per year, with increased fixed costs of $123,400. Is this proposal a good idea?

Name: Break-Even in Sales Revenue, Margin of SafetySports-Reps, Inc., repres
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Break-Even in Sales Revenue, Margin of SafetySports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of $12,400,000 last year, with total variable costs of $6,200,000 and fixed costs of $2,100,000.Re

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 14E: Sports-Reps, Inc., represents professional athletes and movie and television stars. The agency had...

See similar textbooks

Similar questions

Break-Even in Sales Revenue, Margin of Safety Sports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of $12,300,000 last year, with total variable costs of $6,150,000 and fixed costs of $2,100,000. Required: 1. What is the contribution margin ratio for Sports-Reps based on last year's data? Round your answer to two decimal places. (Express as a decimal-based amount rather than a whole percent.) X What is the break-even point in sales revenue? 2. What was the margin of safety for Sports-Reps last year? X
Break-Even in Sales Revenue, Margin of Safety Sports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of $12,300,000 last year, with total variable costs of $6,150,000 and fixed costs of $2,000,000. Required: 1. What is the contribution margin ratio for Sports-Reps based on last year's data? Round your answer to two decimal places. (Express as a decimal-based amount rather than a whole percent.)fill in the blank 1 What is the break-even point in sales revenue?$fill in the blank 2 2. What was the margin of safety for Sports-Reps last year?$fill in the blank 3 3. One of Sports-Reps's agents proposed that the firm begin cultivating high school sports stars around the nation. This proposal is expected to increase revenue by $250,000 per year, with increased fixed costs of $123,400. Is this proposal a good idea?
Sports-Reps, Inc., represents professional athletes and movie and television stars. The agencyhad revenue of $12,345,000 last year, with total variable costs of $5,678,700 and fixed costs of$2,192,400.Required:1. What is the contribution margin ratio for Sports-Reps based on last year’s data? What is thebreak-even point in sales revenue?2. What was the margin of safety for Sports-Reps last year?3. One of Sports-Reps’s agents proposed that the firm begin cultivating high school sports starsaround the nation. This proposal is expected to increase revenue by $230,000 per year, withincreased fixed costs of $122,500. Is this proposal a good idea? Explain.
Meargia Plastics is evaluating its plastic bottles division. The accounting manager has come up with the following data for the year: contribution margin of $570,000, controllable fixed of $228,000, and noncontrollable fixed costs of $57,000. Required: 1. What is the controllable margin? Controllable Margin 2. What is the total contribution by profit center (CPC)?
EXERCISE: Computing and Using the CM Ratio,Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000.Required:1. What is the company’s contribution margin (CM) ratio?2. Estimate the change in the company’s net operating income if it were to
Sheridan Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet). Sales mix is determined based upon total sales dollars.
Computing and Using the CM Ratio Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. Required: 1. What is the company’s contribution margin (CM) ratio? 2. What is the estimated change in the company’s net operating income if it can increase total sales by $1,000?
Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce total revenue of $585,000 and incur total variable cost of $372,000. Total fixed cost is expected to be $60,000. Required: 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement.
What is the procedure to answer these questions, please? Last year a local restaurant realized sales of $300,000 with fixed costs of $110,000 and total variable costs of $70,000. 1. What was the restaurants contribution rate (as a decimal) last year? 2. If the restaurant has the same contribution rate this year, what net income can be expected this year from a revenue of $180,000? 3. If the restaurant has the same fixed and variable costs this year, what sales this year will result in a profit of $29,000? 4. Suppose that the fixed costs this year rise to $130,000 and the variable costs remain the same. What is break-even revenue?
Seabold Interiors sold 18,400 yards of wallpaper last year at a contributionmargin of $3.50 per yard and incurred $49,400 in total fixed costs. This year, contribution margin per yard is expected to increase to $4, and fixed costs are expected to increase to $58,000. How many units must be sold this year to earn the same operating income as was earned last year? (Hint: Use the expanded contribution margin model described in this chapter.)a. 16,900.b. 17,500.c. 18,250.d. 20,200.e. None of the above.
Olongapo Sports Corporation distributes two premium golf balls—the Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: picture1 Fixed expenses total $183,750 per month. Required:1. Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place.2. Compute the break-even point for the company based on the current sales mix.3. If sales increase by $100,000 a month, by how much would you expect net operating incometo increase? What are your assumptions?
Meargia Plastics is evaluating its plastic bottles division. The accounting manager has come upwith the following data for the year: contribution margin of $500,000, controllable fixed costs of$200,000, and noncontrollable fixed costs of $50,000.What is the controllable margin and total contribution by profit center (CPC)?a. Controllable margin: $200,000; CPC: $50,000b. Controllable margin: $50,000; CPC: $500,000c. Controllable margin: $250,000; CPC: 300,000d. Controllable margin: $300,000; CPC: $250,000