Question
In: Accounting
Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on...
Contribution Margin
Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 83,800 units during the year.
| Cover-to-Cover Company |
Biblio Files Company |
|
| Contribution margin ratio (percent) | fill in the blank | fill in the blank |
| Unit contribution margin | $fill in the blank | $fill in the blank |
| Break-even sales (units) | fill in the blank | fill in the blank |
| Break-even sales (dollars) | $fill in the blank | $fill in the blank |
Income Statement - Cover-to-Cover
| Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8 |
||
| Sales | $419,000 | |
| Variable costs: | ||
| Manufacturing expense | $251,400 | |
| Selling expense | 20,950 | |
| Administrative expense | 62,850 | (335,200) |
| Contribution margin | $83,800 | |
| Fixed costs: | ||
| Manufacturing expense | $5,000 | |
| Selling expense | 4,000 | |
| Administrative expense | 11,950 | (20,950) |
| Operating income | $62,850 | |
Biblio Files Company
Contribution Margin Income Statement
For the Year Ended December 31, 20Y8Sales$419,000 Variable
costs: Manufacturing expense$167,600 Selling
expense16,760 Administrative
expense67,040(251,400) Contribution margin$167,600 Fixed
costs: Manufacturing expense$86,750 Selling
expense8,000 Administrative
expense10,000(104,750)Operating income$62,850
Solutions
Expert Solution
completion of following tables from data provided in on the income statement :
| particular | cover-to-cover company | biblio files company |
| contribution margin ratio (%) | 20% | 40% |
| unit contribution margin | $1 | $2 |
| break even sales (units) | 20950 units | 52375 units |
| break even sales (dollars) | $104750 | $261875 |
calculation of above from income statement of two companies as under :
| partuclar | cover-to-cover company | biblio files company |
| 1) contribution margin ratio (contribution x 100/sales) | $83800 x 100/$419000 = 20% | $167600 x 100/$419000 = 40% |
| 2) unit contribution margin (total contribution/no. of units sold) | $83800/83800 = $1 | $167600/83800 =$2 |
| 3) break even sales (units) (fixed costs/unit contribution margin) | $20950/$1 = 20950 units | $104750/$2 = 52375 units |
| 4) break even sales (dollars) (fixed costs/contribution margin ratio) | $20950/20% = $104750 | $104750/40% = $261875 |
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ekkarill92 answered 10 months agoRelated Solutions
Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on...
Contribution Margin
Review the contribution margin income statements for
Cover-to-Cover Company and Biblio Files Company on their respective
Income Statements. Complete the following table from the data
provided on the income statements. Each company sold 74,800 units
during the year.
Cover-to-Cover
Company
Biblio Files
Company
Contribution margin ratio (percent)
%
%
Unit contribution margin
$
$
Break-even sales (units)
Break-even sales (dollars)
$
$
Income Statement - Cover-to-Cover
Cover-to-Cover Company
Contribution Margin Income Statement
For the Year Ended...
Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on...
Contribution Margin
Review the contribution margin income statements for
Cover-to-Cover Company and Biblio Files Company on their respective
Income Statements. Complete the following table from the data
provided on the income statements. Each company sold 74,800 units
during the year.
Cover-to-Cover
Company
Biblio Files
Company
Contribution margin ratio (percent)
%
%
Unit contribution margin
$
$
Break-even sales (units)
Break-even sales (dollars)
$
$
Income Statement - Cover-to-Cover
Cover-to-Cover Company
Contribution Margin Income Statement
For the Year Ended...
Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on...
Contribution Margin
Review the contribution margin income statements for
Cover-to-Cover Company and Biblio Files Company on their respective
Income Statements. Complete the following table from the data
provided on the income statements. Each company sold 77,800 units
during the year.
Cover-to-Cover
Company
Biblio Files
Company
Contribution margin ratio (percent)
fill in the blank %
fill in the blank ]%
Unit contribution margin
$fill in the blank
$fill in the blank
Break-even sales (units)
fill in the blank
fill...
Target Profit Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on...
Target Profit
Refer again to the income statements for Cover-to-Cover Company
and Biblio Files Company on their respective Income Statement. Note
that both companies have the same sales and net income. Answer
questions (1) - (3) that follow, assuming that all data for the
coming year is the same as the current year, except for the amount
of sales.
1. If Cover-to-Cover Company wants to increase
its profit by $40,000 in the coming year, what must their amount of
sales...
High-Low Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio...
High-Low
Biblio Files Company is the chief competitor of Cover-to-Cover
Company in the bookshelf business. Biblio Files is analyzing its
manufacturing costs, and has compiled the following data for the
first six months of the year. After reviewing the data, answer
questions (1) through (3) that follow.
Units Produced
Total Cost
January
4,360
units
$65,600
February
300
6,250
March
1,000
15,000
April
4,800
73,750
May
1,750
32,500
June
3,015
48,000
1. From the data previously provided, help
Biblio Files Company...
Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31,...
Income Statement - Cover-to-Cover
Cover-to-Cover Company
Contribution Margin Income Statement
For the Year Ended December 31, 20Y8
Sales
$374,000
Variable costs:
Manufacturing expense
$224,400
Selling expense
18,700
Administrative expense
56,100
(299,200)
Contribution margin
$74,800
Fixed costs:
Manufacturing expense
$5,000
Selling expense
4,000
Administrative expense
9,700
(18,700)
Operating income
$56,100
Income Statement - Biblio Files
Biblio Files Company
Contribution Margin Income Statement
For the Year Ended December 31, 20Y8
Sales
$374,000
Variable costs:
Manufacturing expense
$149,600
Selling expense
14,960
Administrative expense...
Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31 1 Sales $424,000.00 2...
Cover-to-Cover Company
Contribution Margin Income Statement
For the Year Ended December 31
1
Sales
$424,000.00
2
Variable costs:
3
Manufacturing
$233,200.00
4
Selling
21,200.00
5
Administrative
63,600.00
318,000.00
6
Contribution margin
$106,000.00
7
Fixed costs:
8
Manufacturing
$5,000.00
9
Selling
4,000.00
10
Administrative
33,400.00
42,400.00
11
Income from operations
$63,600.00
Biblio Files Company
Contribution Margin Income Statement
For the Year Ended December 31
1
Sales
$424,000.00
2
Variable costs:
3
Manufacturing
$169,600.00
4
Selling
16,960.00
5
Administrative
67,840.00
254,400.00
6...
Blast Company sells three products. Contribution margin income statements for the three products follow:  
Blast Company sells three products. Contribution margin income
statements for the three products follow:
Product
A Product
B Product
C Total
Sales
$100,000 $80,000 $40,000 $220,000
Variable
expenses 55,000 64,000 12,000
131,000
Contribution
margin
45,000 16,000 28,000
89,000
Fixed
expenses $ 76,540
Income
before taxes $ 12,460
The breakeven sales for the month for the company are closest
to
Which of the following statements is incorrect regarding contribution margin? A. The total contribution margin tells...
Which of the following statements is incorrect regarding
contribution margin?
A. The total contribution margin tells managers the amount by
which sales revenue exceeds cost of goods sold.
B. The contribution margin income statement is organized by cost
behavior.
C. The variable cost percentage represents the amount from each
sales dollar that covers variable costs.
D. The unit contribution margin is calculated by subtracting the
unit variable cost from the sales price.
E. Companies that sell more than one product...
The contribution margin ratio is: a) the percent of each sales dollar that remains to cover...
The contribution margin ratio is:
a) the percent of each sales dollar that remains to cover the
variable and fixed costs.
b) the percent of each sales dollar that remains after deducting
the total unit variable cost.
c) all of these.
d) the same as the gross margin ratio.
A firm forecasts the following information:
Sales $250,000
Break-even sales $190,000
What would be the firm's margin of safety percent?
a) 76.0%
b) 24.0%
c) 131.6%
d) 31.6%
Which of the...
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