FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- At an activity level of 4,000 units in a month, Sam Corporation's total variable cost is $154,200 and its total fixed cost is $129,000. At an activity level of 5,000 units in a month, what what would be the total cost to the nearest whole dollar? × 160,500arrow_forwardDuring the month of September, Chase's Barbershop engaged with 590 clients at an average price of $200. During the month, fixed costs were $26,536 and variable costs were 69% of sales. (Do not use commas or dollar signs in your responses.) Contribution margin in dollars $ Contribution margin per unit $ Contribution margin ratioarrow_forwardLast month when Holiday Creations, Incorporated, sold 41,000 units, its sales, variable expenses, and fixed expenses were $164,000, $136,120, and $38,600, respectively. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the company's variable expense ratio? Note: Do not round intermediate calculations. 1. Contribution margin ratio 2. Variable expense ratio 17 % %arrow_forward
- Green and White Company reported the following monthly data: 3,600 units $ 27 per unit $ 2 per unit $ 3 per unit $ 3.50 per unit $ 14,400 in total $0.50 per unit Units produced Sales price Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses What is Green and White's contribution margin for this month if 1,140 units were sold? Multiple Choice O $64,800 O $20,520 $30,780 $97,200 $3,600 in total $25,080arrow_forwardAjayarrow_forwardWinny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $183,800, how many dollars of revenue must the company generate in order to reach the break-even point? Round to two decimal places.arrow_forward
- Walton Corporation produced 220,000 watches that it sold for $19 each during year 2. The company determined that fixed manufacturing cost per unit was $8 per watch. The company reported a $1,100,000 gross margin on its year 2 financial statements. Required Determine the variable cost per unit, the total variable cost, and the total contribution margin. Variable cost per unit Total variable cost Total contribution marginarrow_forwardVikramarrow_forwardThe section of Waterways that produces controllers for the company provided the following information. Sales for month of February 4,200 Variable manufacturing cost per unit $10.00 Sales price per unit $43.00 Fixed manufacturing overhead cost (per month for controllers) $83,000 Variable selling and administrative expenses per unit $2.90 Fixed selling and administrative expenses (per month for controllers) $13,250 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways Corporation on this product. Contribution Margin Ratio (Round to 0 decimal places, e.g. 25%.) % Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) Break-even Point in Dollars $ Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%.) %arrow_forward
- The contribution margin per units 15.68 and the units needed to break even is 220 for the month. If the fixed cost is $2200 plus labor, how much was the labor for that month?arrow_forwardABC Corporation has sold 1,000 units of product in a month and provided the following contribution format income statement. Assume that the following information is within the relevant range.Total sales revenue 50,000 Total variable expenses 32,000 Contribution margin 18,000 Fixed expenses $ 12,000 Net operating income 6,000 The break-even point in unit sales is closest to:arrow_forwardZeke Company sells 25,300 units at $15 per unit. Variable costs are $7 per unit, and fixed costs are $39,600. The contribution margin ratio (rounded to the nearest whole percent) and the unit contribution margin, respectively, are a. 2% and $7 per unit b. 53% and $15 per unit c. 2% and $15 per unit d. 53% and $8 per unitarrow_forward
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