Cartier Corporation currently sells its products for $50 per unit. The company’s variable costs are $20 per unit. Fixed expenses amount to a total of $5,000 per month. What is the company’s contribution margin ratio? multiple choice 1 40% 60% 100% 20%

Cartier Corporation currently sells its products for $50 per unit. The company’s variable costs are $20 per unit. Fixed expenses amount to a total of $5,000 per month. What is the company’s contribution margin ratio? multiple choice 1 40% 60% 100% 20%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Sunn Company manufactures a single product that sells for $184 per unit and whose variable costs are…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $100,000.…

A: The break-even point indicates that how many units the organization should sell to recover the cost…

Q: Naumann Corporation produces and sells a single product. Data concerning that product appear below.…

A: In the marginal costing income statement net income is computed by deducting total fixed cost from…

Q: Anna Inc. sells two products as follows: Product A Product B Units sold 3,800 4,750 Selling price…

A: The amount of income that remains after deducting the variable costs related to manufacturing a good…

Q: Amazing Company produces a product that sells for $50. Variable manufacturing costs are $18 per…

A: Formula: Contribution margin per unit = Selling price per unit – variable cost per unit

Q: April Industries sells a product with a contribution margin of $12 per unit, fixed costs of…

A: Unit contribution margin = Sales price per unit - variable cost per unit contribution margin ratio =…

Q: Contribution Margin Harry Company sells 40,000 units at $36 per unit. Variable costs are $22.32 per…

A: a. Contribution margin = Sales - variable cost = $36-22.32 = $13.68 Contribution margin ratio =…

Q: Data concerning Wislocki Corporation's single product appear below: Per Unit Percent of sales…

Q: Naumann Corporation produces and sells a single product. Data concerning that product appear below:…

A: ParticularsCurrent PositionExpected PositionNumber of units1300.00=1300+500=1800.00Selling…

Q: ok it hit ences O'Reilly Incorporated makes and sells many consumer products. The firm's average…

A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Q: Vienna Martinez Manufacturing has fixed costs of $2,000,000 and variable costs are 25% of sales.…

A: Break-even analysis: Businesses can use the Cost-Volume-Profit (CVP) analysis, also known as…

Q: Contribution Margin Molly Company sells 29,000 units at $39 per unit. Variable costs are $27.30 per…

A: Contribution margin ratio expressed in terms of percentage and shows the difference between sales of…

Q: Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Marie's Magic Shoppe provides the following information about its single product. Targeted…

A: Contribution margin per unit = Selling price per unit - Variable costs per unit Contribution margin…

Q: Willie Company sells 30,000 units at $16 per unit. Variable costs are $13.28 per unit, and fixed…

A: Solution a: Contribution margin ratio = CM per unit / Selling price per unit = ($16 - $13.28) / $16…

Q: Contribution Margin Molly Company sells 40,000 units at $16 per unit. Variable costs are $9.92 per…

A: a.

Q: Carolina Timber, Inc. produces flooring material. The monthly fixed costs are $10,000 per month. The…

A: Unit contribution margin = Net sales revenue per unit - Variable costs per unit = $75 - $35 = $40…

Q: Sapphire Company makes a single product that it sells for $180 per unit and has a contribution…

A: Lets understand the basics.For determining sales required to earn target profit, we are required to…

Q: Contribution Margin Molly Company sells 36,000 units at $15 per unit. Variable costs are $10.95 per…

A: The selling price minus variable cost of a unit is termed as contribution margin. In short, the…

Q: Baker Company's target operating income for Product Blue is $50,000. Fixed costs are $17,300 and…

A: Required sales to achieve target income are covered under the cost volume profit analysis method. It…

Q: Contribution Margin Harry Company sells 19,000 units at $30 per unit. Variable costs are $22.20 per…

A: Contribution margin ratio - It is a ratio that shows the sum of the amount available to cover fixed…

Q: An organization manufactures and sells a single product that has a variable cost of $24 per unit and…

A: Introduction: Break-even point is the level of cash necessary to cover the company's entire fixed…

Q: Martin Company currently produces and sells 40,000 units of product at a selling price of $14. The…

A: Contribution means the difference between the selling price and variable cost . Selling price means…

Q: Perry Company's break-even point is 20,000 units. Its product sells for $25 and has a $10 variable…

A: Break Even point: - Break even point is the point where the company neither gets profit nor loss by…

Q: Rooney Corporation sells products for $28 each that have variable costs of $16 per unit. Rooney's…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Q: Martin Company currently produces and sells 40,000 units of product at a selling price of $12. The…

A: Unit contribution margin = Selling price - Variable cost per unit Total contribution margin =…

Q: Contribution Margin Sally Company sells 15,000 units at $24 per unit. Variable costs are $20.40 per…

A: Contribution margin ratio = (Contribution Margin per unit/ Selling Price per unit) Contribution…

Q: AC75067 company produces and sells a product with the following characteristics: Per Unit Selling…

A: Net income = contribution - fixed cost

Q: Cost-Volume-Profit Analysis Gannon Company sells a single product for $15 per unit. Variable costs…

A: Break even is the situation at which the company is neither earning profits nor incurring losses.

Q: Your Company produces three products, with costs and selling prices as follows: Demand in units…

A: Contribution Margin - Sales Value - Variable Cost = Contribution Margin. Contribution Margin is the…

Q: Munoz Corporation sells products for $44 each that have variable costs of $19 per unit. Munoz's…

A: The breakeven point is the sales level at which a company covers all its costs, resulting in neither…

Q: Campbell company incurs annual fixed costs of $65,400 variable costs for Campbell's product are…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: Dakota Company provides the following information about its single product Target operating income…

A: Contribution margin per unit = Selling price - Variable cost per unit Break-even point = Total fixed…

Q: a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to…

A: Contribution Margin ratio: It is a ratio that measures the contribution margin generated by the…

Q: Your Company has a limit of 65,000 machine hours for the production. It produces three products,…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: Contribution Margin Harry Company sells 24,000 units at $26 per unit. Variable costs are $17.16 per…

A: Answer Sales - variable cost = contribution Contribution margin = Contribution margin / sales…

Q: moice $91,250 $401,500 $474,500

A: Break even point in sales dollars is the value of sales at which the sales revenue is equal to the…

Q: O'Reilly Incorporated makes and sells many consumer products. The firm's average contribution margin…

A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Q: HUDSON COMPANY Contribution Margin Income Statement. For Year Ended December 31 Sales (10,400 units…

A: Target income is the desired income level of the management.Margin of safety is the sale over and…

Q: At its $34 selling price, Atlantic Company has sales of $34,000, variable manufacturing costs of…

A: Contribution margin = Selling price - Variable cost per unit First, compute the variable cost per…

Question

100%

multiple choice 1

40%
60%
100%
20%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

RST 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 $
Solve complete questions
Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 60,000 Net operating income $ 120,000 If the company decides to pay a sales commission of 2.5% for each unit sold above the break-even point, what net operating income will it earn if it sells 4,600 units? Multiple Choice $50,800 $45,800 $50,400 $48,300
A-6
At its $45 selling price, Atlantic Company has sales of $22,500, variable manufacturing costs of $7,000, fixed manufacturing costs of $3,000, variable selling and administrative costs of $4,000 and fixed selling and administrative costs of $3,000. What is the company's contribution margin per unit? Multiple Choice $23 $11 $37 $17
Coastal Carolina Company has a product with a unit selling price of $200, the unit variable cost is $110, and the total monthly fixed costs are $300,000. What is Coastal Carolina's contribution margin ratio? OA) 182% B) 55% C) 45% OD) 150%
A company manufactures and sells a single product with a variable cost per unit of $36. It has a contribution ratio of 25%. The company has weekly fixed costs of $18,000. What is the weekly breakeven point, in units? A 1,500 B 1,600 C 1,800 D 2,000
Massey Company reported the following data regarding the product it sells: Sales price $ 25 Contribution margin ratio 40 % Fixed costs $ 810,000 Massey Company reported the following data regarding the product it sells: Sales Price: $25 Contribution margin ratio: 40% fixed cost: 810,000 Required Use the contribution margin ratio approach and consider each requirement separately. If the sales price increases to $30 and variable costs do not change, what is the new break-even point in dollars? In units?
Naumann Corporation produces and sells a single product. Data concerning that product appear below: Percent of Sales 100% 18% 82% Selling price Variable expenses Contribution margin Per Unit $ 200 36 $164 Fixed expenses are $130,000 per month. The company is currently selling 1,200 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $46. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? Note: Negative amounts should be indicated by a minus sign. Change in net operating income
Contribution Margin United Merchants Company sells 20,000 units at $19 per unit. Variable costs are $16.15 per unit, and fixed costs are $25,100. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations $
Data concerning Homme Corporation's single product appear below: Per Unit $190 114 $76 Selling price Variable expenses........ Contribution margin Percent of Sales 100% 60% 40% The company is currently selling 2,000 units per month. Fixed expenses are $130,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Homme Corporation. Refer to the original data when answering this question. The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? increase of $2,440 decrease of $12,000 increase of $14,440 decrease of $2,440