Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2machine hours per unit. Scooters require 3 machine hours per unit.Selling price per unitSkateboards$ 200Scooters)$ 400120310Variable costs per unit(a) Compute the contribution margin per unit(b) Compute the contribution margin per machine hour(a) Contribution margin pet undContion margm per machine hourSkateboardsScooters

The contribution margin is computed by deducting variable expenses from the revenue sales. It is the…

Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit. Selling price per unit Variable costs per unit Skateboards $ 200 Scooters $400 120 310 (a) Compute the contribution margin per unit (b) Compute the contribution margin per machine hour (a) Contribution margin per unt ti Cosetution marg per machine hour Skateboards Scooters

Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit. Selling price per unit Variable costs per unit Skateboards $ 200 Scooters $400 120 310 (a) Compute the contribution margin per unit (b) Compute the contribution margin per machine hour (a) Contribution margin per unt ti Cosetution marg per machine hour Skateboards Scooters

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8E

See similar textbooks

Similar questions

Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is 1. Costs are as follows: Other data: Required: 1. Compute the break-even point in units using conventional analysis. 2. Compute the break-even point in units using activity-based analysis. 3. Suppose that Busy-Bee could reduce the setup cost by 100 per setup and could reduce the number of maintenance hours needed to 1,000. How many units must be sold to break even in this case? (Round answer up to whole units.)
Estela Company produces skateboards and scooters. Their per unit selling prices and variable cost Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit. Selling price per unit Variable costs per unit Machine hours per unit Skateboards (a) Contribution margin per unit (b) Contribution margin per machine hour $200 120 2 Skateboards Scooters Required: (a) Compute the contribution margin per unit (b) Compute the contribution margin per machine hour. (Use cells A2 to 17 from the given information to complete this question.) $400 310 3 Scooters
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Product Selling Priceper Unit Variable Costper Unit Snowboards $300 $160 Skis $420 $210 Poles $60 $30 Their sales mix is reflected in the ratio 6:4:1. What is the overall unit contribution margin for Salvadores with their current product mix? Overall Unit Contribution Margin $fill in the blank 1
Computing breakeven sales No Slip Co. produces sports socks. The company has fixed costs of $91,080 and variable costs of $0.81 per package. Each package sells for $1.80. Requirements Compute the contribution margin per package and the contribution margin ratio. (Round your answers to two decimal places.) Find the breakeven point in units and in dollars using the contribution margin approach.
JJ Manufacturing builds and sells switch harnesses for glove boxes. The sale sprice and variable cost for each follow: Product Selling Price Variable Cost per unit per unit Trunk Switch $60.00 $28.00 Gas door switch $75.00 $33.00 Glove box light $40.00 $22.00 Their sales mix is reflected in the ratio 4:4:1. What is the overall unit contribution margin for JJ Manufacturing with their current product mix?
alvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Product Selling Priceper Unit Variable Costper Unit Snowboards $300 $160 Skis $420 $210 Poles $60 $30 Their sales mix is reflected in the ratio 6:4:1. What is the overall unit contribution margin for Salvadores with their current product mix? Overall Unit Contribution Margin $fill in the blank 1
Switch Manufacturing Co. builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Product selling price per unit variable cost per unit trunk switch $60.00 $28.00 gas door switch $75.00 $33.00 Glove Box Light $40.00 $22.00 Their sales mix is reflected in the ratio 4:4:1. What is the overall unit contribution margin for Switch Manufacturing Co. with their current product mix? If annual fixed costs shared by the three products are $18,840 how many units of each product will need to be sold in order for Switch Manufacturing to break even?
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost per Unit Product per Unit Snowboards $310 $190 Skis $420 $240 Poles $60 $10 Their sales mix is reflected in the ratio 6:4:2. What is the overall unit contribution margin for Salvadores with their current product mix? Overall Unit Contribution Margin $
Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. Calculate Juniper’s contribution margin per unit and contribution margin ratio. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even. 1. Calculate Juniper’s contribution margin per unit and contribution margin ratio. unit contribution margin contribution marjin ratio 2. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even.
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost Product per Unit per Unit Snowboards $340 $180 Skis $410 $220 Poles $40 $20 Their sales mix is reflected in the ratio 6:4:2. What is the overall unit contribution margin for Salvadores with their current product mix? Overall Unit Contribution Margin $ 146.6 x Feedback Check My Work Determine the contribution margin for each item. Multiply the contribution margin by the corresponding ratio factor for each item. Add all three amounts to obtain the overall unit contribution margin.
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost Product per Unit per Unit Snowboards $340 $180 Skis $410 $220 Poles $40 $20 Their sales mix is reflected in the ratio 6:4:2. What is the overall unit contribution margin for Salvadores with their current product mix? Overall Unit Contribution Margin $