Please do not give solution in image format thanku What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000pounds of materials? (Round your intermediate calculations to 2 decimal places.)Selling priceVariable expenses:Direct materialsOther variable expensesTotal variable expensesContribution marginContribution margin ratio$ 80.00ProductB$62.00C$81.0024.0024.0048.0018.0025.4043.409.0043.6552.65$ 32.0040%$ 18.60$ 28.3530%35%The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. Thematerial costs $3 per pound with a maximum of 5,000 pounds available each month.

Contribution margin is the money used to pay off fixed costs .It is the excess of sales revenue over…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Revenue Variable costs: Direct labor Direct materials Contribution margin Fixed costs Profit margin $0 O $10,000 ($25,000) ($10,000) product X $50,000 O $50,000 $20,000 $30,000 ? ? ? product Y $80,000 $30,000 $20,000 ? ? ? a total $130,000 The company allocates fixed costs based on direct labor dollars. Compute the profit margin for product line X. $50,000 $50,000 $30,000 $25,000 $5,000
Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC=q+35 MR=560+22q-q^2 Where q is the quantity produced and the firm’s break-even is 5 units per week You are Required to I. determine the total cost and the total revenue function in terms of q. II. estimate the output at which profit is maximize III. calculate the maximum profit
Consider the following information available for Barium Company: Total fixed costs $1,440,000 Contribution margin ratio 0.30 Based on the given information, calculate the sales revenue needed to achieve a target profit of $360,000. a.$6,250,000 b.$5,750,000 c.$5,000,000 d.$6,000,000
Given the following cost and activity observations for Leno Enterprises'utilities, use the high-low method to calculate Leno's variable utilities cost permachine hour. Cost Machine HoursSeptember £4,100 22,000October £3,700 18,000November £3,900 19,000December £4,500 28,000a) £0.08b) £4.86c) £0.25d) £12.50
Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? Finisk a. 47.5% O b. 52.5% O c. 70% ype here to search & 7. V 3 5. 8. W. R Y. G H. V M alt ctri alt 立

Consider the following: Fixed expenses P78,000 Unit contribution margin 12 Target net profit 42,000 How many unit sales are required to earn the target net profit?
Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volume
III. NadasellsorangejuiceforOMR1.00pergallon.ThevariablecostperunitisOMR0.80,andthefixed costs per month are OMR 1,000. You are required to;A) Calculate the total costs if Nada produces 10,000 units? B)Calculate the total profit earned by Nada if they produce and sell 10,000 units?
A tile manufacturer has supplied the following data: 1. What is the company's unit contribution margin? $0.86B. $2.35C. $4.10D. $1.75 2. The company's contribution margin ratio is closest to: 42.7%B. 57.3%C. 45.8%D. 21.0% 3. If the company increases its unit sales volume by 3% without increasing its fixed expenses, then total net operating income should be closest to: $459,380B. $453,667C. $13,380D. $482,660
Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income tax
For Crane Company, sales is $3000000, fixed expenses are $900000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $600000? $8333333 $2500000 $1666667 $4166667
If the contribution margin ratio is 55%, target operating income is $30,000, and the sales revenue needed to achieve the target operating income is $100,000, what are total fixed expenses? O A. $55,000 О В. $25,000 о с. $85,000 O D. $16,500

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