What is the contribution margin per unit for this accounting question? The Haskins Company manufactures and sells radios.Each radio sells for $23.75 and the variable cost perunit is $16.25. Haskin's total fixed costs are $25,000,and budgeted sales are 8,000 units.What is the contribution margin per unit?

Step 1:- Introduction to the Cost-Volume-Profit AnalysisThe examination of variation between costs…

Answered: The Haskins Company manufactures and…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8E

See similar textbooks

Similar questions

Goldfarb Company manufactures and sells toasters. Each toaster sells for $23.35 and the variable cost per unit is $16.15. Goldfarb's total fixed costs are $24,600, and budgeted sales are 7,600 units. What is the contribution margin per unit?
Perry, Inc. manufactures metal stampings for automobiles: stick shifts and trim kits. Fixed costs are $146,000. Each stick shift sells for $10 and has variable costs of $8; each trim kit sells for $9 and has variable costs of $5. What are the contribution margins per unit and contribution ratios for door handles and trim kits? If Perry sells 30,000 stick shifts and 45,000 trim kits, what is operating income? How many stick shifts and trim kits must be sold for Perry to break even?
Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals $146,000. Each door handle sells for $12 and has variablecost of $9; each trim kit sells for $8 and has variable cost of $5.Required:1. What are the contribution margin per unit and the contribution margin ratio for doorhandles and for trim kits?2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income?3. How many door handles and how many trim kits must be sold for Polaris to break even?4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange itsplant to produce only trim kits. If this is done, fixed costs will decrease by $35,000, and70,000 trim kits can be produced and sold. Is this a good idea? Explain
Best Birdies produces ornate birdcages. The company's average cost per unit is $18 when it produces 2,200 birdcages. If $5,800 of the total costs are fixed, what is the variable cost of producing each birdcage?
Mackler, Inc. sells a product with a contribution margin of $50 per unit. Fixed costs are $8,000 per month. How many units must Mackler sell to break even? Please show the formula you used and show your work in the space provided.
Cheetah Company manufactures custom-designed skins (covers) for iPods® and other portable electronic devices. Variable costs are $9.20 per custom skin, the price is $19, and fixed costs are $104,860. 1. What is the contribution margin for one custom skin? 2. How many custom skins must Cheetah Company sell to break even? 3. If Cheetah Company sells 13,000 custom skins, what is the operating income? Calculate the margin of safety in units and in sales revenue if 13,000 custom skins are sold.
Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. Calculate Juniper’s contribution margin per unit and contribution margin ratio. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even. 1. Calculate Juniper’s contribution margin per unit and contribution margin ratio. unit contribution margin contribution marjin ratio 2. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even.
SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, and variable costs are $36 per unit. Determine the (1) contribution margin ratio and (2) break-even point in dollars.
Tequila Mockingbird, Inc. has total costs of $70,000 when it sells 10,000 units. If total fixed costs are $40,000, what is variable cost per unit?
John Co. produces a product that sells for P80. The variable manufacturing costs are P50 per unit. The fixed manufacturing cost is P10 per unit based on the current level of activity, and fixed selling and administrative costs are P10 per unit. A selling commission of 10% of the selling price is paid on each unit sold. What is the contribution margin per unit?
RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. RST desires to earn a profit of $20,000. The contribution margin per unit is $
Bright Force Inc. produces and sells lightning fixtures. An entry light has a total cost of $90 per unit, of which $50 is product cost and $40 is selling and administrative expenses. In addition, the total cost of $90 is made up of $55 variable cost and $35 fixed cost. The desired profit is $20 per unit. Determine the markup percentage on product cost.

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

The Haskins Company manufactures and sells radios. Each radio sells for $23.75 and the variable cost per unit is $16.25. Haskin's total fixed costs are $25,000, and budgeted sales are 8,000 units. What is the contribution margin per unit?