Question

In: Accounting

Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350.

 

__________________________________________________________________________

Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350.

What is Pearson's total contribution margin?

What is the breakeven in terms of units for Pearson?

What is Pearson's net income?

__________________________________________________________________________

Ava’s Creations sells two products. A and B. The weighted average per unit is $40 and Ava’s fixed costs are $24,800. The sales mix is 30% for A and 70% for B.

How many units of Product A must be sold by Ava to break-even?

How many units of Product B must be sold by Ava to break-even?

__________________________________________________________________________

JS Corp. has a selling price of $34 variable costs of $14 per unit, and fixed costs of $16,290. JS net income is $36,684.

How many units did JS sell?

__________________________________________________________________________

Parker Co has sales of $298,200, a contribution margin of $111,000 and net income of $60,850.

Parker’s degree of operating leverage is: ________________ (Round your answer 2 decimal places.)

__________________________________________________________________________

Using the high low method, Hadley Company calculated the variable cost as $4.7 per unit. The high level of the activity was 2,770 units and $36,820 of total cost.

Total fixed costs equal $_______ (Enter your answer as a whole number.)

__________________________________________________________________________

Joe uses the high-low method of estimating costs. Joe had total costs of $13,841 at its lowest level of activity, when 1,583 units were sold. When, at its highest level of activity, sales equaled 7,423 units, total costs were $32,379.

Joe would estimate fixed costs as: _______ (Give your answer as a whole number but do not round your calculations until you get to the final answer.)

Solutions

Expert Solution


Related Solutions

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...
Orion, Inc. sold 17,000 units last year for $50 each. Variable costs per unit were $20...
Orion, Inc. sold 17,000 units last year for $50 each. Variable costs per unit were $20 for direct materials, $15 for direct labor, and $10 for variable overhead. Fixed costs were $10,000 in manufacturing overhead and $50,000 in nonmanufacturing costs. a. What is the total contribution margin? b. What is the unit contribution margin? c. What is the contribution margin ratio? d. If sales increase by 5,000 units, by how much will profits increase?
In 2020, Oriental Company sold 800 units at RM500 each. Variable costs were RM250 per unit,...
In 2020, Oriental Company sold 800 units at RM500 each. Variable costs were RM250 per unit, and fixed costs were RM200,000. The selling price is expected to increase by 10% for 2021 and unit sold is 1,250 units. Oriental Company is tentatively planning to invest in equipment that would increase fixed costs to RM255,000, while decreasing variable costs per unit by 12%. Instructions (a) Compute the break-even point in Ringgit Malaysia (RM) for the year 2020 by using mathematical equation....
If a company decreases the variable expense per unit while increasing the total fixed expenses, the...
If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will: shift upward and have a steeper slope. shift downward and have a steeper slope. shift upward and have a flatter slope. shift downward and have a flatter slope.
The current sales of a company are 5000 units at $65 per unit. Total variable expenses...
The current sales of a company are 5000 units at $65 per unit. Total variable expenses and fixed expenses are $200,000 and $104,800 respectively. If sales unit increase by 4% and fixed expenses remain unchanged, estimate the percentage change in net operating income. a. 80.16% b. 24.75% c. 25% d. 4%
Question #1: Orion, Inc. sold 17,000 units last year for $50 each. Variable costs per unit...
Question #1: Orion, Inc. sold 17,000 units last year for $50 each. Variable costs per unit were $20 for direct materials, $15 for direct labor, and $10 for variable overhead. Fixed costs were $10,000 in manufacturing overhead and $50,000 in nonmanufacturing costs. a. What is the total contribution margin? b. What is the unit contribution margin? c. What is the contribution margin ratio? d. If sales increase by 5,000 units, by how much will profits increase? Question #2: Acme Company...
Fixed costs are $3,000, variable costs are $5 per unit. The company will manufacture 100 units...
Fixed costs are $3,000, variable costs are $5 per unit. The company will manufacture 100 units and chart a 50% markup. Using the cost-plus pricing method, what will the selling price be?
Jason, Inc. sold 90,000 units last year for $2.50 each. Variable costs per unit were $0.30...
Jason, Inc. sold 90,000 units last year for $2.50 each. Variable costs per unit were $0.30 for direct materials, $0.50 for direct labor, and $0.30 for variable overhead. Fixed costs were $60,000 in manufacturing overhead and $40,000 in nonmanufacturing costs. a. What is the total contribution margin? b. What is the unit contribution margin? c. What is the contribution margin ratio? d. If sales increase by 15,000 units, by how much will profits increase?
Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs...
Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs are $200,000. If Plymouth leases a new machine, fixed costs will increase by $60,000 a year, but production will be more efficient, saving $5 per unit. At what level of production will Plymouth be indifferent between leasing and not leasing the new machine?
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price Machine Hours per Unit Total Sales Dollars Variable Cost per Unit Total Contribution Dollars Contribution Dollars per Unit Contribution Margin Percentage Item #1 $65,000 10000 $25,000 $2,000 22500 $10 Item #2 $55,000 20000 $22,000 $2,500 23000 $8 Item #3 $42,000 7500 $15,000 $1,750 27500 $7 Item #4 $27,000 5000 $5,000 $500 11000 $6 Complete the grey cells in the above table Which product would...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT