FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Contribution Margin
Harry Company sells 40,000 units at $36 per unit. Variable costs are $22.32 per unit, and fixed costs are $175,100.
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 |
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- Contribution Margin United Merchants Company sells 34,000 units at $12 per unit. Variable costs are $6.72 per unit, and fixed costs are $100,500. 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.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Income from operations $fill in the blank 3arrow_forwardHiren Add explanationarrow_forwardContribution Margin Ratio a. Young Company budgets sales of $1,150,000, fixed costs of $80,200, and variable costs of $356,500. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 62%, sales were $517,000, and fixed costs were $240,410, what was the operating income?arrow_forward
- United Merchants Company sells 17,000 units at $10 per unit. Variable costs are $6.40 per unit, and fixed costs are $31,200. 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.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Income from operations $fill in the blank 3arrow_forwardnformation concerning a product produced by Ender Company appears here: Sales price per unit $ 159 Variable cost per unit $ 78 Total annual fixed manufacturing and operating costs $ 510,300 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $234,900. Determine the margin of safety in units, sales dollars, and as a percentage.arrow_forwardZeke Company sells 24,500 units at $15 per unit. Variable costs are $7 per unit, and fixed costs are $36,300. The contribution margin ratio (rounded to the nearest whole percent) and the unit contribution margin are a. 53% and $15 per unit, respectively b. 1% and $15 per unit, respectively c. 53% and $8 per unit, respectively d. 1% and $7 per unit, respectivelyarrow_forward
- Willie Company sells 39,000 units at $21 per unit. Variable costs are $14.70 per unit, and fixed costs are $76,200. 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 operationsarrow_forward< Contribution Margin Harry Company sells 24,000 units at $26 per unit. Variable costs are $17.16 per unit, and fixed costs are $72,100. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) b. Unit contribution margin (Round to the nearest cent.) c. Operating income A LA % per unit Darrow_forwardAnalyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are estimated to be 7,800 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,800 units and a plan to produce 9,900 units? b. How much would variable costing operating income differ between the two production plans? $ 0arrow_forward
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