Question
In: Accounting
A compnay manufactures pianos. Sale 3000 units Price 500 per unit Variable costs 290 per unit...
A compnay manufactures pianos.
|
Sale |
3000 units |
|
Price |
500 per unit |
|
Variable costs |
290 per unit |
|
Fixed cost |
205000 |
A) Calculate the contribution margin ratio
B) How many pianos need the company to sell to not loose?
C) How much can the sale decrease in price, without the company loses (margin of safety)
D) Calculate the operating leverage margin according to the current sale
E) If sales increase by 20% for next year, how much will the income increase?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
ABC Inc. manufactures and sell product A. The sale price and costs on a per unit...
ABC Inc. manufactures and sell product A. The sale price and
costs on a per unit basis, when 20,000 units per
month are sold, are as follows:
Manufacturing costs:
Direct materials used $2.00
Direct
labour
$1.00
MOH variable
$1.20
MOH
fixed
$1.10
Selling expenses
Variable
$4.00
Fixed
$1.10
Sale price per
unit
$15
ABC Inc.
received a special order from Africa Co., headquarter located in
Zimbabwe, for...
Flannigan Company manufactures and sells a single product that sells for $500 per unit; variable costs...
Flannigan Company manufactures and sells a single product that
sells for $500 per unit; variable costs are $270. Annual fixed
costs are $943,000. Current sales volume is $4,250,000. Compute the
contribution margin per unit.
Given Sales in units 10,000 Variable manufacturing costs per unit 5 Variable administrative costs per unit...
Given
Sales in units
10,000
Variable manufacturing costs per unit
5
Variable administrative costs per unit
2
Fixed manufacturing costs per unit
2
Fixed administrative costs per unit
1
Variable costs
75%
of sales
Selling price per unit?
$2.22
$9.33
$17.50
$20
Given for XM Company the following data for January 20X1.
Direct material purchased and used in production accounted for
$
50000
Units purchased
5000
The standard units
4200
Managers estimate price variance not to exceed +1% of 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
Acme Company sold 500 units for $450 each. Variable costs were $275 per unit, and total...
Acme Company sold 500 units for $450 each. Variable costs were
$275 per unit, and total fixed expenses were $53,000. Prepare a
contribution margin income statement.
.
Scottso Enterprises has presented the following information for
the past eight months operations:
Month
Units
Total Cost
Aprl
4,000
$ 17,000
May
3,200
$ 14,900
June
1,400
$ 11,100
July
2,800
$ 13,200
August
3,500
$ 16,000
September
4,200
$ 17,400
October
3,900
$ 16,500
November
3,400
$ 15,700
a. Using the high-low...
Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and...
Penny Company sells 25,000 units at $59 per unit. Variable costs
are $29 per unit, and loss from operations is ($50,000). Determine
the following: Round the contribution margin ratio to one decimal
place.
a. Unit contribution margin
$
per unit
b. Contribution margin ratio
%
c. Fixed costs per unit at production of
25,000 units
$
per unit
Sales price per unit for product X is $90. The variable costs per unit and total...
Sales price per unit for product X is $90. The variable costs
per unit and total fixed costs are as follows:
Variable
costs per unit:
Fixed
costs:
Machining
$25
Depreciation
$ 40,000
Packaging
15
Maintenance
31,000
Total
variable $40
Cleaning
9,000
Real estate
tax
5,000
Total
fixed $85,000
Using Contribution Margin technique, calculate Sales Revenue
and Sales Units at Break-Even point.
(b) If the current level of sales is 2,300 units, by
what percentage can sales decrease before the...
Price per Unit Variable Cost per Unit Units Sold per Year Basic $ 700 $ 220...
Price
per Unit
Variable Cost
per Unit
Units Sold
per Year
Basic
$
700
$
220
700
Retest
1,050
580
200
Vital
4,600
3,100
100
Variable costs include
the labor costs of the medical technicians at the lab. Fixed costs
of $490,000 per year include building and equipment costs and the
costs of administration. A basic "unit" is a routine drug test
administered. A retest is given if there is concern about the
results of the first test, particularly if...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information:
Selling Price (per unit): $10,000
Variable Costs (per unit): $7,000
Fixed Costs: $200,000
Required
Each of these are separate situations:
What is the break-even point in total sales in
dollars?
How many units need to be sold to make a profit of
$20,000?
How many units need to be sold to make a profit of
$20,000 if fixed costs increase from $200,000 to
$250,000?
How many units would they need to sell if they wanted
to...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information:
Selling Price (per unit): $10,000
Variable Costs (per unit): $7,000
Fixed Costs: $200,000
Required
Each of these are separate situations:
What is the break-even point in total sales in
dollars?
How many units need to be sold to make a profit of
$20,000?
How many units need to be sold to make a profit of
$20,000 if fixed costs increase from $200,000 to
$250,000?
How many units would they need to sell if they wanted
to...
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