FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- es A jeans maker is designing a new line of jeans called Slams. Slams will sell for $300 per unit and cost $195.00 per unit in variable costs to make. Fixed costs total $67,500. Note: Round your answers to 2 decimal places. 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: 7 1 Denominator: 3. Compute income if 6,500 units are produced and sold Income Contribution Margin Ratio Contribution margin ratio 10arrow_forwardSaved Help Save & Exit St Check my V Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $510 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes. Prepare a contribution margin income statement for the company. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Šuppose Sandy Bank wants to earn $68,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Canoes Produced and Sold 420 630 790 Total costs Variable Costs 65,940 Fixed Costs 136,920 Total Costs 2$ 202,860 $ 0 $ Cost per Unit Variable Cost per Unit…arrow_forward) A firm makes & sells bikes & boards operating in north and south regions. Bikes Boards Sales price 170 150 VCOGS 120 110 Margin 50 40 VSGA 35 14 CM per unit 15 26 Unit Sales by region and product: North South Bikes 3000 2500 Boards 0 2200 Prepare a contribution margin report by sales region showing CM ratios.arrow_forward
- Po.38.arrow_forwardOriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below: A1 A2 A3 Total Selling price per unit $200 $500 $1 000 Variable cost per unit $60 $250 $600 Expected unit sales (annual) 15,000 7,000 2,000 24,000 Sales mix 60 percent 30 percent 10 percent 100 percent Total annual fixed costs are $4,000,000. Assume the sales mix remains the same at all levels of sales. Required: SHOW YOUR WORKINGS FOR ALL SECTIONS Suggest two ways Oriental Furnitures can improve its margin of safety?arrow_forwardProduct Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $5,000 $3,000 Variable cost of goods sold (3,150) (2,010) Manufacturing margin $1,850 $990 Variable selling expenses (900) (570) Contribution margin $950 $420 Fixed expenses (450) (170) Operating income $500 $250 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,300 2,500 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Conquistador Hurricane…arrow_forward
- Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows: Atlantic Wave Pacific Pounder Sales price $350 $300 Variable cost of goods sold per unit (130) (147) Manufacturing margin per unit $220 $153 Variable selling expense per unit (150) (75) Contribution margin per unit $70 $78 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast Atlantic Wave 2,660 1,330 Pacific Pounder 0 1,330 a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory as a whole percent, rounded to two decimal places, if required.arrow_forwardces Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Sales CM ratio Fixed expenses total $183,750 per month. Flight Dynamic $ 150,000 Required 1 Product Required 2 Required 3 80% Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? Break-even point in dollar sales Sure Shot $ 250,000 36% Complete this question by entering your answers in the tabs below. Total $ 400.000 > What is the company's break-even point in dollar sales based on the current sales mix? Note: Do not round intermediate calculations.arrow_forwardProduct Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $6,200 $4,000 Variable cost of goods sold (3,910) (2,680) Manufacturing margin $2,290 $1,320 Variable selling expenses (864) (520) Contribution margin $1,426 $800 Fixed expenses (670) (320) Operating income $756 $480 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,700 1,900 Question Content Area a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc.Contribution Margin by Productblank…arrow_forward
- Riverside Incorporated makes one model of wooden canoe. Partial information for Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Unit contribution margin Contribution margin ratio Sales revenue Variable costs Contribution margin Fixed costs www Total costs Cost per unit Variable cost per unit $ 210.00 220.00 Fixed cost per unit) Total cost per unit $ 430.00 Riverside sells its canoes for $650 each. Next year Riverside expects to sell 1,000 canoes Required: Complete the Riverside's contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside's original data. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be entered as 12.34 %) and all other answers to the nearest dollar amount. Net operating income Scenario 1 Raises Sales Price to $750 per Canoe 550 $ $ 115,500 198,000 $ 313,500 $ 210.00 360.00 $ 570.00 750 $ 157,500 198,000 $ 355,500 540.00…arrow_forwardsolve all the requirementsarrow_forwardProduct Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $6,200 $4,000 Variable cost of goods sold (3,910) (2,680) Manufacturing margin $2,290 $1,320 Variable selling expenses (1,112) (680) Contribution margin $1,178 $640 Fixed expenses (550) (260) Operating income $628 $380 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 1,900 1,400 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Conquistador Hurricane…arrow_forward
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