A cement manufacturer has supplied the following data: Tons of cement produced and sold 275,000 Sales...

A cement manufacturer has supplied the following data:


Tons of cement produced and sold		275,000
Sales revenue	$	979,000
Variable manufacturing expense	$	232,000
Fixed manufacturing expense	$	313,000
Variable selling and administrative expense	$	110,650
Fixed selling and administrative expense	$	93,000
Net operating income	$	230,350

The company's contribution margin ratio is closest to:

Multiple Choice

44.3%
65.0%
68.0%
23.5%

Expert Solution

	Computation of company's contribution margin ratio :-

	Particulars		Total
	Sales revenue		$ 979,000
Less:	Variable manufacturing expenses		$ 232,000
Less:	Variable Selling and administrative expenses		$ 110,650
	Contribution margin		$ 636,350


	Contribution margin ratio	=	Contribution margin	×100
	Contribution margin ratio	=	Sales revenue	×100
		=	$636,350	×100
			$979,000	×100
		=	65.0%

Feel free to ask any clarification, if required. Kindly provide feedback by thumbs up, if satisfied. It will be highly appreciated. Thank you.

ekkarill92 answered 2 years ago

A cement manufacturer has supplied the following data: Tons of cement produced and sold 220000 Sales...

A cement manufacturer has supplied the following data: Tons of cement produced and sold 220000 Sales revenue $924000 Variable manufacturing expense $297000 Fixed manufacturing expense $285498 Variable selling and administrative expense $165000 Fixed selling and administrative expense $81917 If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would operating income be closest to

A cement manufacturer has supplied the following data: Tons of cement produced and sold 262,000 Sales...

A cement manufacturer has supplied the following data: Tons of cement produced and sold 262,000 Sales revenue $ 1,179,000 Variable manufacturing expense $ 431,000 Fixed manufacturing expense $ 228,000 Variable selling and administrative expense $ 93,000 Fixed selling and administrative expense $ 218,000 Net operating income $ 209,000 What is the company's unit contribution margin? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $2.00 per unit $0.52 per unit $4.50 per unit $2.50 per unit

(TCO C) A tile manufacturer has supplied the following data. Tons of cement produced and sold...

(TCO C) A tile manufacturer has supplied the following data. Tons of cement produced and sold 220,000 Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $280,000 Variable selling and admin expense $165,000 Fixed selling and admin expense $82,000 Net operating income $100,000 Required: Calculate the company's unit contribution margin. Calculate the company's contribution margin ratio. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?

A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold................... 300,000 Sales...

A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold................... 300,000 Sales revenue............................................. 1,960,000 Variable manufacturing expense.......................960,000 Fixed manufacturing expense..........................266,000 Variable selling and admin expense................360,000 Fixed selling and admin expense.....................232,000 Net operating income.......................................132,000 Required: Calculate the: The company's break-even in unit sales The company's contribution margin ratio The company's degree of operating leverage

1. A company that makes organic fertilizer has supplied the following data: Bags produced and sold...

1. A company that makes organic fertilizer has supplied the following data: Bags produced and sold 240,000 Sales revenue $1,896,000 Variable manufacturing expense $804,000 Fixed manufacturing expense $520,000 Variable selling and administrative expense $180,000 Fixed selling and administrative expense $270,000 Net operating income $122,000 The company's margin of safety in units is closest to: Select one: a. 140,000 units b. 202,238 units c. 125,714 units d. 32,105 units 2. Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth...

Brown sells tiling grout and reports the following data: Kilograms produced and sold 625,000 kg Sales...

Brown sells tiling grout and reports the following data: Kilograms produced and sold 625,000 kg Sales revenue $5,625,000 Variable manufacturing expense 1,875,000 Fixed manufacturing expense 1,000,500 Variable selling and administrative expense 625,000 Fixed selling and administrative expense 562,000 Net operating income $ 1,562,500 Calculate the company’s operating leverage if sales decrease by 10%.

- Income Statement Data for 20XX: Units produced and sold = 420 Sales ($80 per unit...

- Income Statement Data for 20XX: Units produced and sold = 420 Sales ($80 per unit selling price) = $33600 Cost of goods sold ($30 per unit, all variable costs) = $12600 Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves) Advertising fees =$2000 Bank fees = $150 Phone/internet = $1200 Shipping ($3 per unit) = $1260 Utilities = $900 Office supplies = $800 Interest expense on note payable = $350 Depreciation...

Cost of Goods Manufactured and Sold Anglin Company, a manufacturing firm, has supplied the following information...

Cost of Goods Manufactured and Sold Anglin Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year: Direct labor cost $493,520 Purchases of direct materials 375,280 Freight-in on materials 7,750 Factory supplies used 17,210 Factory utilities 53,300 Commissions paid 79,606 Factory supervision and indirect labor 165,870 Advertising 144,740 Materials handling 17,960 Work-in-process inventory, January 1 203,020 Work-in-process inventory, December 31 118,330 Direct materials inventory, January 1 39,950 Direct materials inventory, December 31...

The simple linear regression of the data on $Sales and number of customers produced the following...

The simple linear regression of the data on $Sales and number of customers produced the following ANOVA output: ANOVA Source df SS MS F Significance F Regression 46833541 Residual Total 51360495 Complete as much of the ANOVA table as you need to answer the following two questions (Questions 18 and 19): The calculated value of the test statistic used to test the following null and alternative hypotheses Ho: The overall regression model is not significant Ha: The overall regression model...

Zot-Ice Corp. has provided the following data for the current year. Units produced 2,500 units Sales...

Zot-Ice Corp. has provided the following data for the current year. Units produced 2,500 units Sales price $400 per unit Direct materials $75 per unit Direct labor $65 per unit Variable manufacturing overhead $25 per unit Fixed manufacturing overhead $225,000 per year Variable selling and administrative costs $30 per unit Fixed selling and administrative costs $150,000 per year Part A Calculate the unit product cost using variable costing and absorption costing. Part B Assuming that Zot-Ice Corp. sells 2,000 units,...

Question