Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin incomestatement LO 3-1Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of$76 per unit. Variable selling expenses are $14 per unit, annual fixed manufacturing costs are $352.000, and fixed selling andadministrative costs are $266,000 per year.RequiredDetermine the break-even point in units and dollars using each of the following approaches:a. Use the equation method.b. Use the contribution margin per unit approach.c. Use the contribution margin ratio approach.d. Prepare a contribution margin income statement for the break-even sales volume. Complete this question by entering your answers in the tabs below.Req A to CPrepare a contribution margin income statement for the break-even sales volume.RITCHIE MANUFACTURING COMPANYContribution Margin Income StatementVariable costsFixed costsContribution marginReq DNet income (loss)< Req A to CReg D

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Answered: Required Determine the break-even point…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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PROBLEM 7 Tito Company sells several products. Information of average revenue and costs are as follows: Selling price per unitPhp20.00 Variable costs per unit: Direct materialsPhp4.00 Direct manufacturing labor Php1.60 Manufacturing overhead Php0.40 Selling costsPhp2.00 Annual fixed costs Php96,000 26. Calculate the contribution margin per unit. 27. Calculate the number of units Tito's must sell each year to break even. 28. Determine the breakeven point in peso. 29. Calculate the number of units Tito's must sell to yield a profit of Php144,000. PROBLEM
The question 1 point possible Stancil Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $50,000. Determine the company's current) revenue and 2) operating income. (Hint First, find the contribution margin ratio; then prepare the contribution margin income statement) Use the contribution margin income statement and the shortcut contribution margin approaches to determine Stancif's current (1) sales revenue and (2) operating income Begin by computing the contribution margin ratio. (inter the result as a whole number) The contribution margin ratio la Question Viewer Prepare the contribution margin income statement at the calculated sales level. Stancil Drycleaners Contribution Margin Income Statement Submit t
Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue, costs and sales data on the two products appear below. Bangus P400 Tupig P600 Selling price per unit Variable cost per unit Number of units sold monthly 240 120 200 units 300 units Fixed costs and expenses are P704,000 per month. Required: a. Average contribution margin ratio. b. Composite breakeven point in units and in pesos. c. Allocation of composite breakeven point in units. d. Assuming the company increases its fixed costs and expenses by P140,800, how many units of Bangus and Tupig should be sold at breakeven point? e. Refer to the original data, assuming the sales mix between Bangus and Tupig is 500 units for Bangus and 300 units for Tupig, what is the new combined breakeven point in units and in pesos? f. Consider the original data, except that Pangasinan Company based its sales mix in units. Determine the following: i. Average UCM. ii. Composite BEP in units and in pesos.
Question 3 Study the information given below and answer: 3.2 Use the marginal income ratio to calculate the break-even value. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%
Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.25/unit) Gross profit Operating expenses: Selling ($1,200 + $0.10/unit) Administrative ($3,500 + $0.20/unit) Operating income $34,400 22,775 $ 11,625 1,950 5,000 $ 4,675 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to 1. 11,250 units. 2. 3,750 units. d. Refer to your answer to part a for total revenues of $34,400. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase by $14,500. 2. Decrease by $3,000.
Question No.2 Menlo Company manufactures and sells a single product. The company’s sales and expenses for last quarter are as follows: Unit Cost $30 $12 $18 Total Cost $450,000 $180,000 $270,000 $216,000 $054,000 Sales. Less variable expenses.. Contribution margin. Less fixed expenses. Net operating income. Required: What is the B.E.P in units sold and in sales dollars? What is the total contribution at B.E.P? How many units must sold each quarter to earn a target profit of $90,000? Use the contribution margin method. Verify your answer by preparing a contribution format income statement at the target sales level. Refer to original data, compute the margin of safety in both dollars and %age terms. What is the company CM ratio? If sales increase by $50,000 per quarter by how much would you expect quarterly net operating income to increase?
Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 8,000 units. Cost formulas also are shown: Revenues $ 34,800 Cost of goods sold ($5,700 + $2.10/unit) 22,500 Gross profit $ 12,300 Operating expenses: Selling ($1,180 + $0.09/unit) 1,900 Administrative ($3,650 + $0.20/unit) 5,250 Operating income $ 5,150 Required: Prepare an income statement in the contribution margin format. Calculate the contribution margin per unit and the contribution margin ratio. Calculate the firm's operating income (or loss) if the volume changed from 8,000 units to 12,000 units. 4,000 units. Refer to your answer to part a for total revenues of $34,800. Calculate the firm’s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues Increase by $11,000. Decrease by $3,000.
Assignment # 3 (From Cost Volume Profit Analysis Mauro Products has a single product, a woven basket whose selling price is $ 15 and whose variable cost is $12 per unit. The company's monthly fixed expenses are $4,200. Required: 1. Solve for the company's break-even point in unit sales using the equation method. 2. Solve for the company's break-even point in sales dollars using the equation method and the CM ratio. 3. Solve for the company's break-even point in unit sales using the contribution margin method. 4. Solve for the company's break-even point in sales dollars using the contribution margin method and the CM ratio.
Question 3 Study the information given below and answer: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2. Selling price per table 3. 4. 5. Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%
Question 3 Study the information given below and answer: 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2. 3. 4. 5. Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%
Question 2 Polk Company developed the following information for its product: Per Unit Sales price $90 Variable cost 63) Contribution margin $27 Total fixed costs $1,080,000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. How many units must be sold to break even? What is the total sales that must be generated for the company to earn a profit of $60,000? If the company is presently selling 45,000 units, but plans to spend an additional $108,000 on an advertising program, how many additional units must the company sell to earn the same net income it is now making? Using the original data in the problem, compute a new break-even point in units if the unit sales price is increased 20%, unit variable cost is increased by 10%, and total fixed costs are increased by $210,000.
es Bloom Company management predicts that it will incur fixed costs of $259,000 and earn pretax income of $493,100 in the next period. Its expected contribution margin ratio is 69%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of total dollar sales. Dollar Sales Choose Numerator: Choose Denominator: * Heimil = Total Dollar Sales Total dollar sales = Required 2 >

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Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach.