FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Based on the below examples (1&2), how can I figure out which contribution margin is needed to calculate the required Break-even? Between (Contribution Margin Per Unit) or (Contribution Margin Ratio). Example (1) (Why we didn't take CM/unit, but instead, CMR is calculated?) Northern Pacific Fixtures Corporation sells a single product for $28 per unit. If variable expenses are 65% of sales and fixed expenses total $9,800, the break-even point is? Example (2) (this one I know how to calculate). Mishoe Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (1,000 units)...................... $50,000 Variable expenses...................... 32,500 Contribution margin..................... 17,500 Fixed expenses.......................... 12,250 Net operating income.................. $5,250 The break-even point in unit sales is closest…arrow_forwardPlease solvearrow_forwardComplete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio: E (Click the icon to view the table.) Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.) A Number of units 1,510 units Sale price per unit $ 1,600 Variable costs per unit 1, 120 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio Data Table A Number of units 1,510 units 14,390 units 2,450 units Sale price per unit 1,600 $ 4.400 5,000 Variable costs per unit 1,120 880 3,750 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Final Checkarrow_forward
- Required:1. Compute the contribution margin per unit from (a) using the new material and (b) using the new material and increasing the selling price. (Round your answers to 2 decimal places.) All of the empty spaces needs numbers, please use the same format at the photosarrow_forwardThe following terms are used to describe various economic characteristics of costs.a. Opportunity costb. Out-of-pocket costc. Sunk costd. Differential coste. Marginal costf. Average costRequired: Choose one of the terms listed above to characterize each of the amounts described below.1. The cost of feeding 500 children in a public school cafeteria is $800 per day, or $1.60 per child per day. What economic term describes this $1.60 cost?2. The cost of including one extra child in a day-care center.3. The cost of merchandise inventory purchased two years ago, which is now obsolete.4. The management of a high-rise office building uses 2,500 square feet of space in the building for its own management functions. This space could be rented for $250,000. What economic term describes this $250,000 in lost rental revenue?5. The cost of building an automated assembly line in a factory is $800,000. The cost of building a manually operated assembly line is $375,000. What economic term is used to…arrow_forwarda. What is the traditional unit product cost for the deluxe model now? (round your intermediate calculations and final answer to 2 decimal places.) b. What is the traditional unit product cost for the tourist model? (Round your intermediate calculations and final answer to 2 deimal places) c. What is the ABC unit product cost for the deluxe model now? (Round your intermediate calculations and final answer to 2 decimal places.) d. What is the ABC product cost for the tourist model? (Round your intermediate calculations and final answer to 2 decimal places.)arrow_forward
- Royal Lawncare Company produces and sells two packaged products - Weedban and Greengrow. Revenue and cost information relating to the products follow: \ table[[, Product], [, Weedban,Greengrow], [Selling price per unit,$8.00, $39.00arrow_forwardPlease help mearrow_forwardShow the complete solution for this problem.arrow_forward
- answer in text form please both a and b (without image)arrow_forwardShow your solution in good accounting form Using the high-low method, how much is the total cost of producing 130 grams of honey?arrow_forwardGladstorm Enterprises sells a product for $50 per unit. The variable cost is $32 per unit, while fixed costs are $9,504. Determine the break-even point in sales units. Round answer to the nearest whole number. units Determine the break-even point in sales units if the selling price was increased to $65 per unit. Round answer to the nearest whole number. unitsarrow_forward
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