Based on the following assumptions, calculate the Contribution Margin and the Contribution Income Statement. Assumptions: 1....

Based on the following assumptions, calculate the Contribution Margin and the Contribution Income Statement.

Assumptions:

1. 250 Units are Sold

2. Per Unit cost is $75

3. Variable costs = $35 per unit

4. Fixed costs are $3,500

a. What is the Revenue?

b. What are the Variable costs?

c. What is the Contribution Margin?

d. What is the Operating Income?

	Units	Per Unit
	Sold	Cost	Amount
Revenue

Variable Costs
Contribution Margin
Fixed Costs
Operating Income

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 7 months ago

1. a) The contribution income statement specifically identifies the contribution margin within the income statement. How...

1. a) The contribution income statement specifically identifies the contribution margin within the income statement. How does forecasting at three levels assist in determining whether the organization's contribution margin on future services benefit the organization? 1. b) What are the advantages to a healthcare organization benchmarking its services and costs to accepted standards of the industry? Do you think organizations use these benchmarks effectively?

Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO. Contribution Margin Income Statement...

Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9,900 units at $225 each) $ 2,227,500 Variable costs (9,900 units at $180 each) 1,782,000 Contribution margin $ 445,500 Fixed costs 342,000 Pretax income $ 103,500 Assume the company is considering investing in a new machine that will increase its fixed costs by $42,000 per year and decrease its variable costs by $9 per unit. Prepare a...

8. Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income...

8. Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,300 units at $375 each) $ 3,862,500 Variable costs (10,300 units at $300 each) 3,090,000 Contribution margin 772,500 Fixed costs 600,000 Pretax income $ 172,500 1. Assume Hudson Co. has a target pretax income of $169,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its...

The contribution income statement specifically identifies the contribution margin within the income statement. How does forecasting...

The contribution income statement specifically identifies the contribution margin within the income statement. How does forecasting at three levels assist in determining whether the organization's contribution margin on future services benefit the organization? no numbers need to be involved u are just answering the question

Problem 21-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result...

Problem 21-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,150 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $265 each. The company has a 40% income tax rate. Variable production costs Plastic for casing $ 83,000 Wages of assembly workers 352,750 Drum stands 120,350 Variable selling costs Sales commissions 74,700 Fixed manufacturing costs Taxes on...

Problem 5-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result...

Problem 5-1A Contribution margin income statement and contribution margin ratio LO A1 The following costs result from the production and sale of 4,500 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $300 each. The company has a 35% income tax rate. Variable production costs Plastic for casing $ 121,500 Wages of assembly workers 414,000 Drum stands 162,000 Variable selling costs Sales commissions 112,500 Fixed manufacturing costs Taxes on...

Question 1: How does a contribution margin income statement differ from the income statement used in...

Question 1: How does a contribution margin income statement differ from the income statement used in financial reporting?

Post a summary addressing the following questions: 1) Why is a contribution margin income statement more...

Post a summary addressing the following questions: 1) Why is a contribution margin income statement more useful to managerial decision makers than the income statement intended for external users? 2) What is the critical item that is treated differently in full absorption versus variable costing? Explain how each method treats it.

In a multi-product contribution margin income statement, how can you calculate the revenues for a product...

In a multi-product contribution margin income statement, how can you calculate the revenues for a product where the only information you have is the variable cost per unit? Also, how to find the sales ratios for each product?

Calculate contribution margin?

Vernon Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Vernon’s normal sales territory, asks Vernon to pour 45 slabs for Lancing’s new development of homes. Vernon has the capacity to build 470 slabs and is presently working on 210 of them. Lancing is willing to pay only $2,690 per slab. Vernon estimates the cost of a typical job to include unit-level materials, $950; unit-level labor, $520; and an allocated portion of facility-level overhead, $1,260....

Question