Question
In: Accounting
Nike makes shoes that sells 130 dollars per unit and incurs 66 dollars for variable manufacturing...
Nike makes shoes that sells 130 dollars per unit and incurs 66 dollars for variable manufacturing cost of 66 dollars per unit. The variable selling expense is 12 dollars per unit, annual fixed manufacturing costs are $450,000 and administrative/fixed selling are $226,000 per year.
Find the break even point in units and dollars using…
- Equation method
- Contribution margin per unit approach
- Contribution margin ratio approach
- Prepare contribution margin income statement for the break even sales volume.
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4.
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Nike Manufacturing Company |
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Contribution income statement |
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Solutions
ekkarill92 answered 2 years agoRelated Solutions
Ritchie Manufacturing Company makes a product that it sells for $130 per unit. The company incurs...
Ritchie Manufacturing Company makes a product that it sells for
$130 per unit. The company incurs variable manufacturing costs of
$66 per unit. Variable selling expenses are $12 per unit, annual
fixed manufacturing costs are $450,000, and fixed selling and
administrative costs are $226,000 per year.
Required
Determine the break-even point in units and dollars using each
of the following approaches:
Use the equation method.
Use the contribution margin per unit approach.
Prepare a contribution margin income statement for the...
Ritchie Manufacturing Company makes a product that it sells for $140 per unit. The company incurs...
Ritchie Manufacturing Company makes a product that it sells for
$140 per unit. The company incurs variable manufacturing costs of
$73 per unit. Variable selling expenses are $11 per unit, annual
fixed manufacturing costs are $468,000, and fixed selling and
administrative costs are $271,200 per year.
Required
Determine the break-even point in units and dollars using each
of the following approaches:
Use the equation method.
Use the contribution margin per unit approach.
Prepare a contribution margin income statement for the...
Ritchie Manufacturing Company makes a product that it sells for $190 per unit. The company incurs...
Ritchie Manufacturing Company makes a product that it sells for
$190 per unit. The company incurs variable manufacturing costs of
$96 per unit. Variable selling expenses are $18 per unit, annual
fixed manufacturing costs are $462,000, and fixed selling and
administrative costs are $260,000 per year.
Required
Determine the break-even point in units and dollars using each
of the following approaches:
Use the equation method.
Use the contribution margin per unit approach.
Prepare a contribution margin income statement for the...
Sells price per unit=$200 variable manufacturing costs per unit= $50 variable S&A costs per unit= $10...
Sells price per unit=$200
variable manufacturing costs per unit= $50
variable S&A costs per unit= $10
Fixed MOH= $50,000
Fixed S&A costs=$10,000
Units produced=5000
Units sold= 4000
Produce a full absorption income statement, what is the
operating income
produce a variable costing income statement, what is the
operating income
if units produced exceeds untis sold, does full absorption
accounting or varible cost account result in a higher operating
income
. Marathon, Inc. makes and sells dancing shoes. The variable cost per pair to produce is...
. Marathon, Inc. makes and sells dancing shoes. The variable
cost per pair to produce is $10 and the selling price is $25 per
pair. They currently have 500 pair in inventory from a prior
period, valued per GAAP at $15 per pair. If Marathon, Inc. makes
1,000 pairs of dancing shoes and sells 1,500 pairs, what will be
the difference in net income between absorption costing and
variable costing? A. Net income under variable costing will be
$2,500 more...
Merline Manufacturing makes its product for $55 per unit and sells it for $141 per unit....
Merline Manufacturing makes its product for $55 per unit and
sells it for $141 per unit. The sales staff receives a 10%
commission on the sale of each unit. Its December income statement
follows.
MERLINE MANUFACTURING
Income Statement
For Month Ended December 31, 2017
Sales
$
1,410,000
Cost of goods sold
550,000
Gross profit
860,000
Operating expenses
Sales commissions (10%)
141,000
Advertising
222,000
Store rent
25,100
Administrative salaries
45,500
Depreciation—Office equipment
55,500
Other expenses
13,100
Total expenses
502,200
Net income...
Merline Manufacturing makes its product for $70 per unit and sells it for $132 per unit....
Merline Manufacturing makes its product for $70 per unit and
sells it for $132 per unit. The sales staff receives a 10%
commission on the sale of each unit. Its December income statement
follows.
MERLINE MANUFACTURING
Income Statement
For Month Ended December 31, 2019
Sales
$
1,320,000
Cost of goods sold
700,000
Gross profit
620,000
Operating expenses
Sales commissions (10%)
132,000
Advertising
204,000
Store rent
24,200
Administrative salaries
41,000
Depreciation—Office equipment
51,000
Other expenses
12,200
Total expenses
464,400
Net income...
Merline Manufacturing makes its product for $70 per unit and sells it for $138 per unit....
Merline Manufacturing
makes its product for $70 per unit and sells it for $138 per unit.
The sales staff receives a 10% commission on the sale of each unit.
Its December income statement follows.
MERLINE MANUFACTURING
Income Statement
For Month Ended December 31, 2017
Sales
$
1,380,000
Cost of goods
sold
700,000
Gross
profit
680,000
Operating
expenses
Sales
commissions (10%)
138,000
Advertising
216,000
Store rent
24,800
Administrative
salaries
44,000
Depreciation—Office equipment
54,000
Other
expenses
12,800
Total
expenses
489,600
Net income...
Merline Manufacturing makes its product for $70 per unit and sells it for $138 per unit....
Merline Manufacturing
makes its product for $70 per unit and sells it for $138 per unit.
The sales staff receives a 10% commission on the sale of each unit.
Its December income statement follows.
MERLINE MANUFACTURING
Income Statement
For Month Ended December 31, 2017
Sales
$
1,380,000
Cost of goods
sold
700,000
Gross
profit
680,000
Operating
expenses
Sales
commissions (10%)
138,000
Advertising
216,000
Store rent
24,800
Administrative
salaries
44,000
Depreciation—Office equipment
54,000
Other
expenses
12,800
Total
expenses
489,600
Net income...
Merline Manufacturing makes its product for $65 per unit and sells it for $131 per unit....
Merline Manufacturing makes its product for $65 per unit and
sells it for $131 per unit. The sales staff receives a 10%
commission on the sale of each unit. Its December income statement
follows.
MERLINE MANUFACTURING
Income Statement
For Month Ended December 31, 2017
Sales
$
1,310,000
Cost of goods sold
650,000
Gross profit
660,000
Operating expenses
Sales commissions (10%)
131,000
Advertising
202,000
Store rent
24,100
Administrative salaries
40,500
Depreciation—Office
equipment
50,500
Other expenses
12,100
Total expenses
460,200
Net income...
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