Compute the contribution margin ratio and the margin of safety ratio.Contribution margin ratioMargin of safety ratio20%% Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers.For the year 2022, management estimates the following revenues and costs.SalesDirect materialsDirect laborManufacturing overhead-variable:Manufacturing overhead-fixed.$1,750,000450,000400,000420,000120,000Selling expenses-variableSelling expenses-fixedAdministrative expenses-variableAdministrative expenses-fixed$108,00054,00022,00071,000

The contribution margin ratio is a financial statistic that represents the percentage of each sales…

Answered: Compute the contribution margin ratio…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 550,000 400,000 420,000 190.000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $109,000 58,000 21,000 52.000
Crane Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,750,000 Selling expenses—variable $96,500 Direct materials 450,000 Selling expenses—fixed 63,000 Direct labor 360,000 Administrative expenses—variable 26,000 Manufacturing overhead—variable 380,000 Administrative expenses—fixed 69,500 Manufacturing overhead—fixed 130,000 Prepare a CVP income statement for 2022 based on management’s estimates. (Round per unit answers to 3 decimal places, e.g. 0.251.)
Determine the sales dollars required to earn net income of $230,000. Required sales 481000 Ű Ĉ Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,650,000 Selling expenses-variable $73,000 Direct materials 520,000 Selling expenses-fixed 52,000 Direct labor 340,000 Administrative expenses-variable 27,000 360,000 Administrative expenses-fixed 59,000 Manufacturing overhead-variable Manufacturing overhead-fixed 120,000 3 Ć Compute the break-even point in (1) sales units and (2) sales dollars. (Round answers to O decimal places, e.g. 1,225.) (1) Break-even point 2310000 units (2) Break-even point $ 1155000 S Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio 20 % Margin of safety ratio 30 % 3 Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places,…
Assume that total sales revenue for 2018 is projected to be $1081764. Assume also the following costs for Shannon's Brewery: Packaged (Cans & Bottles) Kegs Shrinkage/WIP Loss Contract Labor Direct Labor Freight Consumer Advertising Trade Promotion Sales Promotion Salaries & Benefits $150,000 $80,000 $42,000 $9,000 $240,000 $18,000 $31083 $26761 $18,000 $180,000 Compute Shannon's %NMC. Round your answer to the nearest percent. For example, if your computed answer is 99.4% your answer rounds down to 99%. If your computed answer is 99.5% you should round up to 100%. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER.
Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers For the year 2022, management estimates the following revenues and costs. Sales $1.800,000 Selling expenses-variable $105,000 Direct materials 510,000 Selling expenses-fixed 62,000 Direct labor 390,000 Administrative expenses-variable 25,000 Manufacturing overhead-variable· 410,000 Administrative expenses-fixed 96,000 Manufacturing overhead-fixed 130,000 Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio Margin of safety ratio
Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses-variable $105,000 Direct materials 510,000 Selling expenses-fixed 62,000 Direct labor 390,000 Administrative expenses-variable 25,000 Manufacturing overhead-variable 410,000 Administrative expenses-fixed 96,000 Manufacturing overhead-fixed 130,000
Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $2,000,000 Selling expenses—variable $109,000 Direct materials 550,000 Selling expenses—fixed 58,000 Direct labor 400,000 Administrative expenses—variable 21,000 Manufacturing overhead—variable 420,000 Administrative expenses—fixed 52,000 Manufacturing overhead—fixed 190,000 Prepare a CVP income statement for 2020 based on management’s estimates. Calculate variable cost per bottle.
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales Information for this year follows. Manufacturing costs Direct materials 24 24 30 per unit 50 per unit Direct labor Overhead costs 20 per unit $8,800, 000 (per year) variable 24 Fixed selling and administrative costs for the year variable $ 750,000 $4,500,000 Fixed Production and sales for the year Units produced 110,000 units 80, 000 units 360 per unit Units sold Sales price per unit 1. Prepare an Income statement for the year using varlable costing. 2. Prepare an Income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement
Assume that projected revenue for 2018 is 1,255,160. Also assume the following projected 2018 costs in each of the cost categories from question one: Packaged (Cans & Bottles) Kegs Shrinkage/WIP $130,715 $65,801 Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $30,000 Trade Promotion $30,000 Sales Promotion $18,000 Salaries & Benefits $180,000 Given these costs, compute Shannon's projected contribution in dollars.
Mafraq company produces and sells a tablets for $300 per unit. in 2020, 46.125 tablets were produced and 37.958 were sold. Other information for the year includes: Direct materials 540.00 per unit $ 5.00 per unit $ 7.50 per unit Direct manufacturing labor Variable manufactunng costs Fixed manufacturing costs $6250 per unit Admınistrative expenses, all fixed 53750 per unit -What is the inventoriable cost per unit using variabie costing $45.00 A O 552.50 .B O $65.00.CO S115.00.D O None of the above E O
Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials. Direct labor 30 per unit $ 50 per unit Overhead costs Variable $ 40 per unit Fixed $6,600,000 (per year) Selling and administrative costs for the year Variable $ 775,000 $5,000,000 Fixed Production and sales for the year Units produced 110,000 units Units sold Sales price per unit 80,000 units 360 per unit $ 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 O F9 F10 Ś F11 F12 my wor Fn 3:30 PM 6/16/2022 Insert Drt Sc

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio Margin of safety ratio 20 % %