Question
In: Accounting
Question 6: The following company provides a single product and have provided their summary forecast data...
Question 6: The following company provides a single product and have provided their summary forecast data shown below relating to its product for 2020.
|
Selling price per unit |
$55 |
|
Variable manufacturing costs |
$23 |
|
Annual fixed manufacturing costs |
$450000 |
|
Variable, marketing, distribution and administration costs |
$9 |
|
Annual fixed non-manufacturing costs |
$229000 |
|
Annual volume |
50000 |
a. Calculate the contribution margin per unit.
b. Calculate the contribution margin ratio.
c. Calculate the break-even in units and sales dollars for 2020.
d.Calculate the profit earned in 2020.
Solutions
Expert Solution
| a. Calculate the contribution margin per unit. | 23 | |
| b. Calculate the contribution margin ratio. | 41.82% | (23/55*100) |
| c. Calculate the break-even in units | 29,522 | UNITS |
| c. and sales dollars for 2020. | 1,623,696 | |
| d.Calculate the profit earned in 2020. | 471,000 | |
| Working note: | ||
| Total | Per Unit | |
| Sales | 2,750,000 | 55 |
| Less: Variable cost-manufacturing | 1,150,000 | 23 |
| Less: Variable cost-marketing, distribution | 450,000 | 9 |
| Contribution margin | 1,150,000 | 23 |
| Less: fixed cost | 679,000 | |
| Net Income | 471,000 | |
| Break even units = Total fixed cost / Contribution margin per unit | ||
| Break even sales = Total fixed cost / Contribution margin ratio | ||
ekkarill92 answered 1 year agoRelated Solutions
Question 6: The following company provides a single product and have provided their summary forecast data...
Question 6: The following company provides a single
product and have provided their summary forecast data shown below
relating to its product for
2020.
Selling price per unit
$55
Variable manufacturing costs
$23
Annual fixed manufacturing costs
$450000
Variable, marketing, distribution and administration
costs
$9
Annual fixed non-manufacturing costs
$229000
Annual volume
50000
a. Calculate the contribution margin per
unit.
b. Calculate the contribution margin ratio.
c. Calculate the break-even in units and sales dollars
for 2020.
d.Calculate the profit...
The Sunrise enterprises, a single product company, provides you the following data for the Month of...
The Sunrise enterprises, a single product company, provides you
the following data for the Month of Sep. 2020.
• Sales (4,000 units @ $25/unit): $1,00000
• Contribution Margin per unit: $12
• Total fixed expenses for the month: $18,000 Required:
Calculate break-even point( in units and in dollars) and margin of
safety( in Percentage, units and Dollars) for Sunrise enterprises
using above data. Also draw a CVP graph and show the sales volume
representing break-even point and margin of safety...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling
price
$
126
Units in
beginning inventory
0
Units
produced
2,630
Units sold
2,500
Units in ending
inventory
130
Variable costs
per unit:
Direct
materials
$
49
Direct
labor
$
17
Variable
manufacturing overhead
$
8
Variable selling
and administrative expense
$
9
Fixed
costs:
Fixed
manufacturing overhead
$
84,160
Fixed selling
and administrative expense
$
17,500
The total...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price
$138
Units in beginning inventory
0
Units produced
3,390
Units sold
2,840
Units in ending inventory
550
Variable costs per unit:
Direct materials
$51
Direct labor
$16
Variable manufacturing overhead
$14
Variable selling and administrative
$10
Fixed costs:
Fixed manufacturing overhead
$115,260
Fixed selling and administrative expenses
$17,040
The total gross margin for the month under absorption costing...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price -------------------------------------- $126
Units in beginning inventory ------------------- 0
Units produced
---------------------------------- 8,500
Units sold ----------------------------------------- 8,300
Units in ending inventory
--------------------- 200
Variable costs per unit:
Direct materials
------------------------------- $36
Direct labor
------------------------------------ $52
Variable manufacturing overhead
--------- $2
Variable selling and administrative
------- $9
Fixed costs:
Fixed manufacturing overhead -----------
$127,500
Fixed selling and administrative
---------- ...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price -------------------------------------- $140
Units in beginning inventory ----------------- 0
Units produced ---------------------------------- 1,200
Units sold
----------------------------------------- 800
Units in ending inventory
--------------------- 400
Variable costs per unit:
Direct materials -------------------------------
$25
Direct labor
------------------------------------ $41
Variable manufacturing overhead -------
$6
Variable selling and administrative
------ $6
Fixed costs:
Fixed manufacturing overhead -----------
$24,000
Fixed selling and administrative...
13 A manufacturing company that produces a single product has provided the following data concerning its...
13 A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price
$149
Units in beginning inventory
0
Units produced
2,770
Units sold
2,520
Units in ending inventory
250
Variable costs per unit:
Direct materials
$51
Direct labor
$20
Variable manufacturing overhead
$10
Variable selling and administrative
$12
Fixed costs:
Fixed manufacturing overhead
$96,950
Fixed selling and administrative expenses
$35,280
The total gross margin for the month under absorption...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price
...........................................................
$100
Units in beginning inventory .......................... 0
Unit produced
...................................................... 5,500
Unit sold
.................................................................
5,400
Unit in ending inventory ...................................
100
Variable costs per unit:
Direct materials ..............................................
$23
Direct labor
...................................................... $25
Variable manufacturing overhead ........... $ 2
Variable selling and administrative ......... $ 9
Fixed costs:
Fixed manufacturing overhead .................. $137,500
Fixed selling and administrative...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price
$
140
Units in beginning inventory
0
Units produced
3,150
Units sold
2,760
Units in ending inventory
390
Variable costs per unit:
Direct materials
$
47
Direct labor
$
18
Variable manufacturing overhead
$
10
Variable selling and administrative expense
$
19
Fixed costs:
Fixed manufacturing overhead
$
107,100
Fixed selling and administrative expense
$
24,840
The total...
10. A manufacturing company that produces a single product has provided the following data concerning its...
10. A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price
...........................................................
$100
Units in beginning inventory .......................... 0
Unit produced
...................................................... 5,500
Unit sold
.................................................................
5,400
Unit in ending inventory ...................................
100
Variable costs per unit:
Direct materials ..............................................
$23
Direct labor
...................................................... $25
Variable manufacturing overhead ........... $ 2
Variable selling and administrative ......... $ 9
Fixed costs:
Fixed manufacturing overhead .................. $137,500
Fixed selling and...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- How does process evaluation and continuous improvement effect project management and the critical path? Apply "Real-World"...
- A student stands at the edge of a cliff and throws a stone horizontally over the...
- Limestone (CaCO3(s)) is fed into a kiln and converted into quicklime (CaO(s)) via the following reaction:...
- 1. Write chemical reactions for both DNA polymerization activity and 3'-->5' exonuclease activity of a DNA...
- [AP Bio] Light wavelength significance for photosynthesis? I am writing an analysis based on a theoretical...
- C++ program Reference: while loop, if....else, for loop, the % operator MARTIAN BOOLEAN MULTIPLICATION OBJECTIVE: To...
- In a spray dryer operation, milk powder with a moisture content of 4 %wt is produced...
ADVERTISEMENT