Managerial Accounting
14th Edition
ISBN: 9781337270595
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 6, Problem 6BE
(a)
To determine
Contribution Margin
Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin.
The variable cost quantity factor, when volume increased by 2,400 units to actual total units.
(b)
To determine
The unit cost factor for variable cost of goods sold.
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A product has a sales price of $340 and a per-unit contribution margin of $136. What is
the contribution margin ratio?
Contribution margin ratio
%
Contribution Margin Analysis
The actual variable cost of goods sold for a product was $30 per unit, per unit, while the planned variable cost of goods sold was
$35 per unit. The volume decreased by 4,400 units to 55,200 actual total units. Enter all amounts as positive numbers.
a. Determine variable cost quantity factor.
b. Determine the unit cost factor for variable cost of goods sold. s
The actual variable cost of goods sold for a product was $140 per unit, while the planned variable cost of goods sold was $136 per unit. The volume increased by 2,400 units to 14,000 actual total units.
a. Determine the variable cost quantity factor.
$
b. Determine the unit cost factor for variable cost of goods sold.
Chapter 6 Solutions
Managerial Accounting
Ch. 6 - What types of costs are customarily included in...Ch. 6 - Which type of manufacturing cost (direct...Ch. 6 - Which of the following costs would be included in...Ch. 6 - In the variable costing income statement, how are...Ch. 6 - Prob. 5DQCh. 6 - Discuss how financial data prepared on the basis...Ch. 6 - Prob. 7DQCh. 6 - Explain why rewarding sales personnel on the basis...Ch. 6 - Prob. 9DQCh. 6 - Prob. 10DQ
Ch. 6 - Explain why service companies use different...Ch. 6 - Prob. 1BECh. 6 - Prob. 2BECh. 6 - Prob. 3BECh. 6 - Prob. 4BECh. 6 - Contribution margin by segment The following...Ch. 6 - Prob. 6BECh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Variable costing income statement On November 30,...Ch. 6 - Absorption costing income statement On March 31....Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Prob. 17ECh. 6 - Prob. 18ECh. 6 - Prob. 19ECh. 6 - Variable costing income statement for a service...Ch. 6 - Prob. 21ECh. 6 - Variable costing income statement for a service...Ch. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Salespersons report and analysis Walthman...Ch. 6 - Prob. 5PACh. 6 - Prob. 6PACh. 6 - Absorption and variable costing income statements...Ch. 6 - Income statements under absorption costing and...Ch. 6 - Absorption and variable costing income statements...Ch. 6 - Prob. 4PBCh. 6 - Prob. 5PBCh. 6 - Prob. 6PBCh. 6 - Prob. 1ADMCh. 6 - Prob. 2ADMCh. 6 - Prob. 3ADMCh. 6 - Prob. 4ADMCh. 6 - Prob. 1TIFCh. 6 - Inventory effects under absorption costing BendOR,...Ch. 6 - Prob. 3TIF
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- A product has a sales price of $90 and a per-unit contribution margin of $30. What is the contribution margin ratio?arrow_forwardTo calculate the sales dollars necessary to achieved a desired profit level, the sum of fixed costs plus desired prof it is divided by contribution margin weighted average unit contribution margin contribution margin ratio unit sales price minus unit contribution marginarrow_forwardOn the CVP graph, the next unit sold will increase sales by an amount equal to the Select one: O a. Contribution margin ratio O b Selling price per unit minus the variable.costs per unit Oc Variable costs per unit Od. Difference between contribution margin and fixed costs O e. Selling price per unitarrow_forward
- Refer to the pictur ebelow: Find: 1. Total Cost of Product A under ABC System2. Total Cost of Product B under ABC System3. Selling Price per unit of Product B assuming profit margin of 20% above costarrow_forwardWhirly has the following information for 2015. They sell Flying Carpets. Sales Contribution Margin Net Income 1. Complete a table for Whirly. Total $400,000 $150,000 $15,000 CVP and BEP Quantity 10,000 Flying Carpets Per Unit Ratio To Salesarrow_forwardOn the CVP graph, the next unit sold will increase total cost by an amount equal to the Select one: a. Contribution margin ratio b. Selling price per unit c. Selling price per unit minus the variable costs per unit d. Difference between contribution margin and fixed costs e. Variable costs per unitarrow_forward
- Compute the contribution margin ratio and fixed costs using the following data. Sales $4,600 Variable costs $ 2,944 Income $ 540 Less: Sales Variable cost Contribution margin Numerator: Fixed Cost 1 Contribution Margin $ Contribution Margin Ratio Denominator: 1 4,600 2,944 = Contribution Margin Ratio Contribution margin ratio 0arrow_forwardOn the CVP graph, the next unit sold will increase total cost by an amnount equal to the Select one: O a Difference between contribution margin and fixed costs b.Selling price per unit minus the variable costs per unit c Variable costs per unit d. Contribution margin ratio e Selling price per unitarrow_forwardREQUIREMENT: 1.Find the Weighted Average Contribution Margin Ratio 2.Find the Weighted Average Unit Contribution Margin 3.Find the Breakeven Sales in Pesos and the Breakeven Sales in Unitsarrow_forward
- Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are estimated to be 7,800 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,800 units and a plan to produce 9,900 units? b. How much would variable costing operating income differ between the two production plans? $ 0arrow_forwardSuppose that the total cost function, in dollars, for the production of x units of a product is given by the equation shown below. C(x) = 4,500 + 30x + 0.2x² Then the average cost of producing x items is represented by the following equation. total cost 4,500 C(x) + 30 + 0.2x (a) Find the instantaneous rate of change of average cost with respect to the number of units produced, at any level of production. (b) Find the level of production at which this rate of change equals zero. X = (c) At the value found in part (b), find the instantaneous rate of change of cost and find the average cost. instantaneous rate of change of cost average cost What do you notice?arrow_forward3. A hardware company has a linear total cost function and has determined that it has a total cost of $13,980 on sales of $6,000. The same company has a total cost of $18,620 on sales of $14,000. The selling price per unit is $1. (a) Determine the revenue, cost, and profit function using q for quantity. (b) What is the fixed cost? (c) What is the variable cost on sales of $60,000? (d) What is the total cost on sales of $60,000? (e) Find the break-even point and break-even dollar volume of sales.arrow_forward
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