If variable cost of goods sold totaled $98,094 for the year (16,349 units at $6 each) and the planned variable cost of goods sold totaled $109,064 (13,633 units at $8 each), the effect of the quantity factor on the change in contribution margin is: a.$16,296 decrease b.$21,728 decrease c.$16,296 increase d.$21,728 increase

2. On the basis of French's revised information, what does next year look like: a. What is the break-even point? 1,035,688 units Sales at full capacity (units) Sales volume (units) Unit sales price ($) Sales revenue ($) Variable cost per unit ($) Contribution margin per unit ($) Total variable cost ($) Fixed costs ($) Profit ($) Ratios Variable cost to sales Unit Contribution to sales Utilization of capacity (%) Break even point (units) Aggregate 2,000,000 1,750,000 6.948 12,160,000 3.385 3.56 5,925,000 3,690,000 2,545,000 0.49 0.51 87.5 1,035,688.312 A 400,000 $10 4,000,000 7.5 2.5 3,000,000 960,000 40,000 0.75 0.25 20 384,000 Product Lines B 400,000 $9 3,600,000 3.75 5.25 1,500,000 1,560,000 540,000 0.42 0.58 20 297,143 C 950,000 $4.80 4,560,000 1.5 3.3 1,425,000 1,170,000 1965000 0.31 0.69 47.5 354,545

If variable cost of goods sold totaled $101,100 for the year (16,850 units at $6 each) and the planned variable cost of goods sold totaled $109,680 (13,710 units at $8 each), the effect of the unit cost factor on the change in contribution margin is: a.$18,840 decrease b.$33,700 increase c.$33,700 decrease d.$18,840 increase

Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:   EstimatedFixed Cost   Estimated Variable Cost(per unit sold) Production costs:             Direct materials —   $19       Direct labor —   13       Factory overhead $105,800     10     Selling expenses:             Sales salaries and commissions 22,000     4       Advertising 7,400     —       Travel 1,700     —       Miscellaneous selling expense 1,800     4     Administrative expenses:             Office and officers' salaries 21,500     —       Supplies 2,600…

Last year's contribution format income statement for Huerra Company is given below: Unit $ 49.60 29.76 19.84 15.74 Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income The company had average operating assets of $496,000 during the year. Required: 1. Compute last year's margin, turnover, and return on investment (ROI). For each of the following questions, indicate whether last year's margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI. Consider each question separately. 2. Using Lean Production, the company is able to reduce the average level of inventory by $95,000. 3. The company achieves a cost savings of $11,000 per year by using less costly materials. 4. The company purchases machinery and equipment that increase average operating assets by $124,000. Sales remain unchanged. The new, more efficient equipment reduces production costs by $7,000 per…

A company has following details for this yearDetails Total sales($) Total cost($) Details                              Total sales($)                 Total cost($)Year ended 31/12/2018         35,78,998              25,89,709Year ended 31/12/2019        48,90,742              31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019

Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:   EstimatedFixed Cost   Estimated Variable Cost(per unit sold) Production costs:             Direct materials —   $28       Direct labor —   19       Factory overhead $495,200     14     Selling expenses:             Sales salaries and commissions 102,900     6       Advertising 34,800     —       Travel 7,700     —       Miscellaneous selling expense 8,500     6     Administrative expenses:             Office and officers' salaries 100,600     —       Supplies 12,400…

Contribution Margin Analysis The actual variable cost of goods sold for a product was $30 per unit, per unit, while the planned variable cost of goods sold was $35 per unit. The volume decreased by 4,400 units to 55,200 actual total units. Enter all amounts as positive numbers. a. Determine variable cost quantity factor. b. Determine the unit cost factor for variable cost of goods sold. s

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Contribution margin, break-even sales, cost-volume-profit chart, marginof safety, and operating leverageBelmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for theyear is therefore assumed to be equal to the cost of goods sold. With thisin mind, the various department heads were asked to submit estimatesof the costs for their departments during the year. A summary report ofthese estimates is as follows: (attached)   It is expected that 12,000 units will be sold at a price of $240 a unit.Maximum sales within the relevant range are 18,000 units.Instructions 1. Prepare an estimated income statement for 20Y7.2. What is the expected contribution margin ratio?3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-evensales.5. What is the expected margin of safety in dollars and as apercentage of sales?6. Determine the operating leverage.