Complete the product mix analysis to determine the contribution margin per machine hour.Containers PlusProduct Mix AnalysisRegularLargeSales price per unitVariable cost per unitContribution margin per unitUnits per machine hourContribution margin per machine hourWhich product should Containers Plus emphasize? Why?Containers Plus should emphasize the production ofV because this product has the higherRequirement 2. To maximize profits, how many of each size bin should Containers Plus produce? (Enter a "0" for any zero amounts.)Containers Plus should spendmachine hours makingregular size bins, andmachine hours makinglarge size bins.Requirement 3. Given this product mix, what will the company's operating income be?Number of regular size bins per periodContribution margin per regular size binTotal contribution marginFixed costsOperating income Data tableRegularLarge...Sales price per unit$8.20 $10.40Variable costs per unit3.204.30PrintDoneMore infoThe company makes two sizes of bins: large (50 gallon) and regular (35 gallon).Demand for the products is so high that Containers Plus can sell as many of eachsize as it can produce. The company uses the same machinery to produce bothsizes. The machinery can only be run for 3,100 hours per period. Containers Pluscan produce 12 large bins every hour, whereas it can produce 17 regular bins inthe same amount of time. Fixed costs amount to $110,000 per period.PrintDone

In order to determine the contribution margin per unit, the variable CST per unit is required to be…

Data table Regular Large Sales price per unit $ 8.20 $ 10.40 Variable costs per unit 3.20 4.30 Print Done More info The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that Containers Plus can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for 3,100 hours per period. Containers Plus can produce 12 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $110,000 per period.

Data table Regular Large Sales price per unit $ 8.20 $ 10.40 Variable costs per unit 3.20 4.30 Print Done More info The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that Containers Plus can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for 3,100 hours per period. Containers Plus can produce 12 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $110,000 per period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION #-1 Lucy Company Has the Following Data 5,000 unit Current sales level Birr 20 Selling price per unit Direct material cost per unit Birr 8 Birr 2 Direct labor cost per unit Birr 2 Variable overhead per unit 20,000 Total fixed cost A. Break-Even Units B. Break-Even Sales C. Margin of safety in number of units and Birr. D. Profit if sales are 20% above the Break-Even Sales E. Sales to make a profit of birr 5,000 F. Contribution margin ratio if selling price is increased by G. Breakeven sales if selling price increased by 10% H. Breakeven sales, if fixed cost is increased by 20% I. Degree of operating leverage at the current sales level J. If the company wants to increase the sales level by 259 decision on net operating income of the company. QUESTION #-2: BBF. Inc., a retailing company has two c monthly contribution format income state for the company B Sales $3,000,000 $1 Variable expenses 900,000 40 Contribution margin 2,100,000 60 Fixed expenses 1,400,000 80 Operating income…
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Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $150 Total variable costs 25 40 Variable cost amount per unit 25 $240 Fixed costs: Factory overhead Selling and admin. exp. Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. $350,000 140,000 a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. % c. Determine the selling price of cellular phones. If required, round to the nearest dollar. per cellular phone
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eBook Show Me How Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 395 Sales Price per Unit $520 Variable Cost per Unit $370 Contribution Margin per Unit $150 Fixed Costs $3,750 Break-Even (in units) 25 Contribution Margin Ratio 29% Break-Even (in dollars) $13,000 What would Marshall's target margin of safety point be in units and dollars if they required a $14,250 margin of safety? Target margin of safety units
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Please do not give solution in image format thanku