FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Ritchie Manufacturing Company makes a product that it sells for $180 per unit. The company incurs variable manufacturing costs of $100 per unit. Variable selling expenses are $17 per unit, annual fixed manufacturing costs are $460,000, and fixed selling and administrative costs are $195,200 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. Complete this question by entering your answers in the tabs below. Req A to C Req D Determine the break-even point in units and dollars using the equation method, the contribution margin per unit approach and the contribution margin ratio approach. a. Break-even point in units a. Break-even point in dollars b. Contribution margin per unit b. Break-even point in units b. Break-even point…arrow_forwardGiven the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour. September October November December a) £0.08 b) £4.86 c) £0.25 d) £12.50 Cost Machine Hours £4,100 22,000£3,700 18,000£3,900 19,000 £4,500 28,000arrow_forwardNeed all answeredarrow_forward
- Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,091 14,781 April 2,676 9,929 May 2,812 11,845 June 3,520 17,889 a.$0.49 b.$0.53 c.$0.11 d.$1.17arrow_forwardThree production processes - A, B, and C - have the following cost structure: the selling price is 5.26 per unit Process Fixed Cost per Year Variable Cost per Unit A 119164 2.54 B 80631 4.52 C 70617 5.27 1. What is the cost of process A for a volume of 7104 units? (round to the nearest cent).arrow_forwardSuppose that a company has fixed costs of $16 per unit and variable costs $10 per unit when 10,803 units are produced. What are the fixed costs per unit when 19,315 units are produced? Round to the nearest penny, two decimal places.arrow_forward
- Bluegill Company sells 9,900 units at $300 per unit. Fixed costs are $148,500, and operating income is $742,500. Determine the following: a. Variable cost per unit $ b. Unit contribution margin $ per unit c. Contribution margin ratio %arrow_forwardBluegill Company sells 16,900 units at $100 per unit. Fixed costs are $84,500, and income from operations is $929,500. Determine the following: Round the contribution margin ratio to two decimal places. a. Variable cost per unit $fill in the blank 1 b. Unit contribution margin $fill in the blank 2 per unit c. Contribution margin ratio fill in the blank 3 %arrow_forwardGiven the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,093 14,645 April 2,668 10,463 May 2,846 11,922 June 3,779 18,072 a.$0.15 b.$0.98 c.$1.61 d.$1.02arrow_forward
- Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,031 14,997 April 2,698 10,326 May 2,858 12,140 June 3,893 18,050 a.$0.15 b.$0.77 c.$1.55 d.$0.73arrow_forwardGiven the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. March April May June Cost $3,100 2,700 2,900 3,600 Machine Hours 15.000 10,000 12,000 18,000arrow_forward
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