Muskoka Tools Depot is selling snow blowers for $720.00 each. The same model blowers are being offered by Dixie Appliances for $504.00 each. What rate of discount should Muskoka Tools Depot offer to match the lower price? The variable costs to manufacture a digital appliance are $260 per appliance and the selling price is $850 per appliance. The fixed costs are $46,520 per month. a. Calculate the contribution margin per appliance. Round to the nearest cent b. Calculate the number of appliances that need to be sold per month to break even.

Muskoka Tools Depot is selling snow blowers for $720.00 each. The same model blowers are being offered by Dixie Appliances for $504.00 each. What rate of discount should Muskoka Tools Depot offer to match the lower price? The variable costs to manufacture a digital appliance are $260 per appliance and the selling price is $850 per appliance. The fixed costs are $46,520 per month. a. Calculate the contribution margin per appliance. Round to the nearest cent b. Calculate the number of appliances that need to be sold per month to break even.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sandy Bank, Incorporated, 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 $560 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes for $560 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $560 each. 5. Suppose Sandy Bank wants to earn $72,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $560 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Number of Canoes Produced and Sold Total costs Variable Costs Fixed Costs Total Costs Cost per Unit Required 3 Required 4…
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Based on the description below, answer the questions that follow. The manager of a local restaurant spends $8,500 for its monthly fixed cost. Its variable cost is $9 per customer. Determine the amount of its Contribution Margin (CM) to generate the EBT of $6,500. (Do not put "$" or "," in your answer. Put only the number. For example put 10000 for $10,000. FYI, the Canvas will put "" automatically by itself. If necessary, round your answer to the nearest dollar.
Can you help with the CVP Drill #6?
Tamarisk Manufacturing incurs unit costs of $7.20 ($5.20 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 17,200 of the parts for $5.70 per unit. If it accepts the offer, Tamarisk will save all variable costs and $1.00 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Tamarisk will realize by buying the part. (Round per unit answers to 2 decimal places, eg. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).)
Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes for $590 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $590 each. 5. Suppose Sandy Bank wants to earn $76,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $590 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Number of Canoes Produced and Sold Total costs Variable Costs Fixed Costs Total Costs Cost per Unit Required 3 Required 4 Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $ $ $ 500 Required 5 780 0 0.00
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