Reeds Paper Company sells a product for $80 per unit. Variable costs are $25 per unit, and fixed costs are $4,000 per month. Andres sold 2,000 units in October. Prepare an income statement for October using the contribution margin format.
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Reeds Paper Company sells a product for $80 per unit. Variable costs are $25 per unit, and fixed
costs are $4,000 per month. Andres sold 2,000 units in October. Prepare an income statement for October
using the contribution margin format.
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- Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.A company manufactures and sells blades that are used in riding lawnmowers. The 18-inch blade sells for $15 and has per-unit variable costs of $4 associated with its production. The company has fixed expenses of $85,000 per month. In January, the company sold 12,000 of the 18-inch blades. A. Calculate the contribution margin per unit for the 18-inch blade. B. Calculate the contribution margin ratio of the 18-inch blade. C. Prepare a contribution margin income statement for the month of January.Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
- A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable costs of $65 per cubic yard. The company has fixed expenses of $15,000 per month. In August, the company sold 240 cubic yards of Grade A mulch. A. Calculate the contribution margin per unit for Grade A mulch. B. Calculate the contribution margin ratio of the Grade A mulch. C. Prepare a contribution margin income statement for the month of August.Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
- Gabriel Company sells a product for $90 per unit. Variable costs are $40 per unit and fixed costs are $630 per month. The company expects to sell 650 units in September. Calculate the contribution margin per unit, in total, and as a ratio.Help meSolomon Corporation paid one of its sales representatives $4,000 during the month of March. The rep is paid a base salary plus $10 per unit of product sold. During March, the rep sold 300 units. Required Calculate the total monthly cost of the sales representative's salary for each of the following months: Month April May June July Number of units sold Total variable cost Total fixed cost 320 180 360 200 Total salary cost
- Pierce Drycleaners has capacity to clean up to 6,000 garments per month. E (Click the icon to view the cost schedule.) Assume that Pierce charges customers $12 per garment for dry cleaning. Prepare Pierce's projected income statement if 4,220 garments are cleaned in March. First, prepare the income statement using the traditional format; then prepare Pierce's contribution margin income statement. Data table swers to the nearest whole dollar. Enter losses with parentheses or a 4,500 Garments 3,000 6,000 Garments Garments Total variable costs $ 2,100 $ 3,150 $ 4,200 Total fixed costs 10,800 10,800 10,800 $ 12,900 $ 13,950 $ 15,000 Total operating costs Variable cost per garment 2$ 0.70 $ 0.70 $ 0.70 3.60 2.40 1.80 Fixed cost per garment $ Average cost per garment 4.30 $ 3.10 $ 2.50 Print DoneYour company has provided its contribution format income statement for January. The company produces and sells a single product. What is its total contribution margin at 3,100 units? Sales (2,900 units) $269,700 Variable Expenses 107,300 Contribution Margin 162,400 Fixed Expenses 137,100 Net Operating Income $25,300Campbell Corporation paid one of its sales representatives $5,500 during the month of March. The rep is paid a base salary plus $11 per unit of product sold. During March, the rep sold 140 units. Required Calculate the total monthly cost of the sales representative's salary for each of the following months. Month April May June July Number of units sold 180 90 190 100 Total variable cost Total fixed cost Total salary cost