Stancil Dry Cleaners has determined the following about its​ costs: Total variable expenses are$42,000​,total fixed expenses are $24,000, and the sales revenue needed to break even is $48,000. Determine the​ company's current​ 1) sales 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 Stancil's current​ (1) sales revenue and​ (2) operating income. Begin by computing the contribution margin ratio. ​(Enter the result as a5 whole​ number.) The contribution margin ratio is 50 %. Prepare the contribution margin income statement at the calculated sales level

Fill in the missing amounts in each of the eight case situations below. Each case Is Independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format Income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the following four case situations: Unit sold Sales Variable expenses Fixed expenses Operating income (loss) Contribution margin per unit Sales Variable expenses Fixed expenses $ Operating income (loss) Average contribution margin (percentage) Case #1 20,400 244,800 163,200 68,000 $ $ 136,000 $ 10 Case #2 $ Case #1 536,000 43,520 10.880 $ 8,800 20% 10 $ 69 Case #3 Case #2 13,600 b. Assume that more than one product is being sold in each of the following four case situations: (Enter "Contribution margin ratio" in percent. Round your final answers to the nearest whole dollar amount.) 436.000 283.400 109.000 95,200 16,320 13 $ S CA Case #4…

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the following four case situations: Unit sold Sales Variable expenses Fixed expenses Operating income (loss) Contribution margin per unit Sales Variable expenses Fixed expenses $ Operating income (loss) Average contribution margin (percentage) Case #1 20,100 241,200 $ 160,800 67,000 $ Case #2 S $ $ Case #1 134,000 42,880 10,720 S 10 S 8,700 20% b. Assume that more than one product is being sold in each of the following four case situations. (Enter "Contribution margin ratio" in percent. Round your final answers to the nearest whole dollar amount.) 534,000 $ Case #3 Case #2 13,400 434,000 282,100 108,500 93,800 Case #4 8,040 S 402,000…

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the following four case situations: Unit sold Sales Variable expenses Fixed expenses Operating income (loss) Contribution margin per unit Sales Variable expenses Fixed expenses $ Operating income (loss) Average contribution margin (percentage) Case #1 15,600 187,200 124,800 52,000 $ $ $ 104,000 $ $ Case #2 Case #1 33,280 8,320 $ 10 $ 7,200 20% Case #3 Case #2 504,000 $ 404,000 262,600 101,000 b. Assume that more than one product is being sold in each of the following four case situations: (Enter "Contribution margin ratio" in percent. Round your final answers to the nearest whole dollar amount.) 10,400 72,800 $ $ Case #4 104,000 12,480 $…

How to calculate profitability analysis?

APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company's product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a per-unit basis.…

Contribution income statement Top Disc manufactures flying disks. The following information is available for the year, the company's first year in business when it produced 325,000 units. Revenue of $812,500 was generated by the sale of 325,000 flying disks. Production Direct material Direct labor Manufacturing overhead Selling and administrative Variable Cost Fixed Cost $150,000 100,000 75,000 $112,500 90,000 100,000

What is a good response to this classmates post?  For this week's discussion, I will answer: What are the purposes of each margin, and what information do they convey? Contribution margin uses the CPV calculation with C=unit margin, P =unit revenue, and V=unit variable cost. The formula is C=P-V. The contribution margin shows the money each product/unit sold makes after removing the unit variable cost. This can be displayed grossly or per unit (Team, 2024). This margin shows what kind of profit and revenue a particular product can generate after covering the fixed costs. Gross margin is calculated by gross margin = revenue-product cost. Subtracting the direct costs (labor and materials) from the company's revenue will allow the company to see what its gross profit is compared to its revenues as a percentage. The main difference is how the costs are classified by function (product vs. period).

Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin income statement LO 3-1 Ritchie 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 and administrative costs are $266,000 per year. 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. d. Prepare a contribution margin income statement for the break-even sales volume.

To find the number of units that need to be sold in order to breakeven or generate a target profit, the formula used is A. (fixed expenses + operating income) contribution margin per unit. B. (fixed expenses operating income) + contribution margin ratio. C. (fixed expenses operating income) + contribution margin per unit. D. (fixed expenses + operating income) + contribution margin ratio.