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Business
Accounting
Compute the contribution margin ratio and fixed costs using the following data. Sales $5,900 Variable costs $3,009 Income $ 490 Less: Sales Variable cost Contribution margin Numerator: Contribution margin $ Fixed Cost 5,900 3,009 2,891 Contribution Margin Ratio Denominator: 1 Contribution Margin /Sales $ $ 2,891 / 5,900 490 = = = Contribution Margin Ratio Contribution margin ratio 49 %
Compute the contribution margin ratio and fixed costs using the following data. Sales $5,900 Variable costs $3,009 Income $ 490 Less: Sales Variable cost Contribution margin Numerator: Contribution margin $ Fixed Cost 5,900 3,009 2,891 Contribution Margin Ratio Denominator: 1 Contribution Margin /Sales $ $ 2,891 / 5,900 490 = = = Contribution Margin Ratio Contribution margin ratio 49 %
BUY
Principles of Accounting Volume 2
19th Edition
ISBN:
9781947172609
Author: OpenStax
Publisher:
OpenStax College
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1 Accounting As A Tool For Managers
2 Building Blocks Of Managerial Accounting
3 Cost-volume-profit Analysis
4 Job Order Costing
5 Process Costing
6 Activity-based, Variable, And Absorption Costing
7 Budgeting
8 Standard Costs And Variances
9 Responsibility Accounting And Decentralization
10 Short-term Decision Making
11 Capital Budgeting Decisions
12 Balanced Scorecard And Other Performance Measures
13 Sustainability Reporting
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Chapter Questions
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Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....
Problem 2MC: A companys product sells for $150 and has variable costs of $60 associated with the product. What is...
Problem 3MC: A companys product sells for $150 and has variable costs of $60 associated with the product. What is...
Problem 4MC: A companys contribution margin per unit is $25. It the company increases its activity level from 200...
Problem 5MC: A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the...
Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...
Problem 7MC: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and...
Problem 8MC: A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be...
Problem 9MC: A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys...
Problem 10MC: When sales price increases and all other variables are held constant, the break-even point will A....
Problem 11MC: When sales price decreases and all other variables are held constant, the break-even point will...
Problem 12MC: When variable costs increase and all other variables remain unchanged, the break-even point will...
Problem 13MC: When fixed costs decrease and all other variables remain unchanged, the break-even point will...
Problem 14MC: When fixed costs increase and all other variables remain unchanged, the contribution margin will A....
Problem 15MC: If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin...
Problem 16MC: Break-even for a multiple product firm. can be calculated by dividing total fixed costs by the...
Problem 17MC: Waskowski Company sells three products (A. B. and C) with a sales mix of 3:2:1. Unit sales price are...
Problem 18MC: Beaucheau Farms sells three products (E, F, and G) with a sale mix ratio of 3:1:2. Unit sales price...
Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...
Problem 20MC: Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month...
Problem 21MC: Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month...
Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
Problem 1Q: Define and explain contribution margin on a per unit basis.
Problem 2Q: Define and explain contribution margin ratio.
Problem 3Q: Explain how a contribution margin income statement can be used to determine profitability.
Problem 4Q: In a cost-volume-profit analysis, explain what happens at the break-even point and why companies do...
Problem 5Q: What is meant by a products contribution margin ratio and how is this ratio useful in planning...
Problem 6Q: Explain how a manager can use CVP analysis to make decisions regarding changes in operations or...
Problem 7Q: After conducting a CVP analysis, most businesses will then recreate a revised or projected income...
Problem 8Q: Explain how for is possible for costs to change without changing the break-even point.
Problem 9Q: Explain what a sales mix is and how changes in the sales mix affect the break-even point.
Problem 10Q: Explain how break-even analysis for a multi-product company differs from a company selling a single...
Problem 11Q: Explain margin of safety and why it is an important measurement for managers.
Problem 12Q: Define operating leverage and explain its importance to a company and how it relates to risk.
Problem 1EA: Calculate the per-unit contribution margin of a product that has a sale price of $200 if the...
Problem 2EA: Calculate the per-unit contribution margin of a product that has a sale price of $400 if the...
Problem 3EA: A product has a sales price of $150 and a per-unit contribution margin of $50. What is the...
Problem 4EA: A product has a sales price of $250 and a per-unit contribution margin of $75. What is the...
Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...
Problem 6EA: Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of...
Problem 7EA: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per...
Problem 8EA: Marchete Company produces a single product. They have recently received the results of a market...
Problem 9EA: Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The...
Problem 10EA: Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable...
Problem 11EA: Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable...
Problem 12EA: Use the information from the previous exercises involving Salvador Manufacturing to determine their...
Problem 13EA: Company A has current sales of $10,000,000 and a 45% contribution margin. Its fixed costs are...
Problem 14EA: Marshall s target margin of safety be in units and dollars if they required a $14,000 margin of...
Problem 1EB: Calculate the per-unit contribution margin of a product that has a sale price of $150 if the...
Problem 2EB: Calculate the per-unit contribution margin of a product that has a sale price of $350 if the...
Problem 3EB: A product has a sales price of $175 and a per-unit contribution margin of $75. What is the...
Problem 4EB: A product has a sales price of $90 and a per-unit contribution margin of $30. What is the...
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
Problem 6EB: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit...
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...
Problem 9EB: Baghdad Company produces a single product. They have recently received the result of a market survey...
Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...
Problem 11EB: Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost...
Problem 12EB: Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost...
Problem 13EB: Use the information from the previous exercises involving JJ Manufacturing to determine their...
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
Problem 15EB: Best Wholesale recently calculated their break-even point for their Midwest operations. The national...
Problem 1PA: A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850...
Problem 2PA: A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for...
Problem 3PA: Fill in the missing amounts for the four companies. Each case is independent of the others. Assume...
Problem 4PA: Markham Farms reports the following contribution margin income statement for the month of August....
Problem 5PA: Kylies Cookies is considering the purchase of a larger oven that will cost $2,200 and will increase...
Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...
Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...
Problem 8PA: Jakarta Company is a service firm with current service revenue of $400,000 and a 40% contribution...
Problem 1PB: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable...
Problem 2PB: A company manufactures and sells blades that are used in riding lawnmowers. The 18-inch blade sells...
Problem 3PB: Fill in the missing amounts for the four companies. Each case is independent of the others. Assume...
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....
Problem 6PB: Karens Quilts is considering the purchase of a new Long-arm Quilt Machine that will cost $17,500 and...
Problem 7PB: Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit...
Problem 8PB: Tim-Buck-Il rents jet skis at a beach resort. There are three models available to rent: Junior,...
Problem 9PB: Fire Company is a service firm with current service revenue of $900,000 and a 40% contribution...
Problem 1TP: Mariana Manufacturing and Bellow Brothers compete in the same industry and in all respects their...
Problem 2TP: Roald is the sales manager for a small regional manufacturing firm you own. You have asked him to...
Problem 3TP: As a manager, you have to choose between two options for new production equipment. Machine A will...
Problem 4TP: Coutures Creations is considering offering Joe, an hourly employee, the opportunity to become a...
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Compute the contribution margin ratio and fixed costs using the following data. Sales $ 5,900 Variable costs $ 3,009 Income $ 490 Less: Sales Variable cost Contribution margin Numerator: Contribution margin $ Fixed Cost 5,900 3,009 $ 2,891 Contribution Margin Ratio Denominator: 1 Contribution Margin $ /Sales $ $ 2,891 / 5,900 490 = 11 Contribution Margin Ratio Contribution margin ratio 49 %
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