FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Please don't give image formatarrow_forwardContribution margin per constraint Zion Metals Inc. has three grades of metal product, A1, B3, and E6. Financial data for the three grades are as follows: A1 B3 E6 Revenue $ 400,000 $ 578,000 $ 300,000 Variable cost $(250,000) $(380,000) $(270,000) Fixed cost (105,000) (118,800) (20,000) Total cost $(355,000) $(498,800) $(290,000) Operating income $ 45,000 $ 79,200 $ 10,000 Number of units ÷ 15,000 ÷ 16,500 ÷ 5,000 Operating income per unit $ 3.00 $ 4.80 $ 2.00 Zion Metals’ operations require all three grades to be melted in a furnace before being formed. The furnace runs 24 hours a day, 7 days a week, and is a production constraint. The furnace hours required per unit of each product are as follows: A1: 8 hours B3: 10 hours E6: 6 hours The Marketing Department is considering a new marketing and sales campaign. Which product should be emphasized in the marketing and sales…arrow_forwardonly need 4-7arrow_forward
- Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (18,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Multiple Choice O $6,000 profit. Per Unit $ 12.00 $4,000 loss. 1.50 4.00 1.00 5.50 1.00 1.40 $ 3.10 A foreign company offers to buy 6,000 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 28,000 units. If Lattimer accepts this additional business, the special order will yield a: Annual Total $ 216,000 27,000 72,000 18,000 99,000 18,000 25, 200 $ 55,800arrow_forwardSubject: acountingarrow_forwardPlease do not give solution in image format thankuarrow_forward
- please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)arrow_forward?? Ansarrow_forwardRequired information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin Fixed costs Income $ 3,136,000 2,352,000 784,000 567,000 $ 217,000 1. Compute break-even point in units. 2. Compute break-even point in sales dollars. 1. Break-even units 2. Break-even sales dollars unitsarrow_forward
- N1. Accountarrow_forwardHudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,500 units at $225 each) Variable costs (10,500 units at $180 each) Contribution margin Fixed costs Income $ 2,362,500 1,890,000 472,500 369,000 $ 103,500 Exercise 5-18 (Algo) Evaluating strategies-price increase LO C2 If the company raises its selling price to $240 per unit. 1. Compute Hudson Company's contribution margin per unit. 2. Compute Hudson Company's contribution margin ratio. 3. Compute Hudson Company's break-even point in units. 4. Compute Hudson Company's break-even point in sales dollars. 1. Contribution margin 2. Contribution margin ratio 3. Break-even in units 4. Break-even sales dollars per unit % unitsarrow_forwardPlease do not give solution in image format thankuarrow_forward
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