Question

1.

Leeks Company's product has a contribution margin per unit of $12.65 and a contribution margin ratio of 23.0%. What is the selling price of the product?

2

Barclay Bikes manufactures and sells three distinct styles of bicycles: the Youth model sells for $500 and has a unit contribution margin of $155; the Adult model sells for $950 and has a unit contribution margin of $500; and the Recreational model sells for $1,300 and has a unit contribution margin of $550. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,600,000, calculate the firm's contribution margin ratio per composite unit (rounded to the nearest whole percentage).

3.

Masterson Company's budgeted production calls for 76,000 units in April and 72,000 units in May of a key raw material that costs $1.80 per unit. Each month's ending raw materials inventory should equal 20% of the following month's budgeted materials. The April 1 inventory for this material is 15,200 unit. What is the budgeted materials needed in units for April?

4.

If budgeted beginning inventory is $8,850, budgeted ending inventory is $10,060, and budgeted cost of goods sold is $10,810, budgeted purchases should be:

Answer 1