Question

In: Accounting

- For Coronado Industries, sales is $2500000, fixed expenses are $900000, and the contribution margin ratio...

- For Coronado Industries, sales is $2500000, fixed expenses are $900000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $700000?

- Swifty Corporation reported sales of $1600000 last year (80000 units at $20 each), when the break-even point was 72000 units. Swifty’s margin of safety ratio is?

- In 2016, Coronado Industries sold 3000 units at $750 each. Variable expenses were $460 per unit, and fixed expenses were $780000. The same variable expenses per unit and fixed expenses are expected for 2017. If Coronado cuts selling price by 4%, what is Coronado’s break-even point in units for 2017?

- Vaughn Manufacturing sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $165 and a selling price of $210. Q-Drive Plus has variable costs per unit of $180 and a selling price of $255. The weighted-average unit contribution margin for Vaughn is?

- Bramble Corp. sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $150 and a selling price of $210. Q-Drive Plus has variable costs per unit of $165 and a selling price of $255. Bramble’s fixed costs are $729000. How many units of Q-Drive would be sold at the break-even point?

- Crane Company can produce and sell only one of the following two products:

Oven Contribution
Hours Required Margin per Unit
Muffins 0.2 $2
Coffee Cakes 0.3 $8


The company has oven capacity of 2250 hours. How much will contribution margin be if it produces only the most profitable product?

- Crane Company has sales of $1000000, variable costs of $400000, and fixed costs of $500000. Crane’s degree of operating leverage is?

- Sheridan Company has sales of $2500000, variable costs of $1000000, and fixed costs of $810000. Sheridan’s margin of safety ratio is?

Solutions

Expert Solution


Related Solutions

question 1 - Salt Corporation's contribution margin ratio is 70% and its fixed monthly expenses are...
question 1 - Salt Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $50,000. Assume that the company's sales for May are expected to be $109,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change. question 2- Fern Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses total $42,000 per year, and the company must sell 6,000 units to break even....
Creswell Corporation's fixed monthly expenses are $29,000 and its contribution margin ratio is 56%. Assuming that...
Creswell Corporation's fixed monthly expenses are $29,000 and its contribution margin ratio is 56%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $95,000? Multiple Choice $53,200 $66,000 $12,800 $24,200
4. The contribution margin ratio for Zee Corporation is 40%, sales are $600,000, and fixed costs...
4. The contribution margin ratio for Zee Corporation is 40%, sales are $600,000, and fixed costs are $160,000. An increase in a. 10%Zee’s sales by 10% will increase the corporation’s profitability by: a. 10% b. 20% c. 30% d. 40% e. Cannot be determined with the above provided information.
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 85,000 units and has fixed cost of $348,600. The variable cost per unit is $0.35. What price does Jefferson charge per unit? Note: Round to the nearest cent. $ 2. Sooner Industries charges a price of $127 and has fixed cost of $360,500. Next year, Sooner expects to...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 95,000 units and has fixed cost of $349,700. The variable cost per unit is $0.15. What price does Jefferson charge per unit? Note: Round to the nearest cent. $ 2. Sooner Industries charges a price of $129 and has fixed cost of $421,000. Next year, Sooner expects to...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 85,000 units and has fixed cost of $351,900. The variable cost per unit is $0.30. What price does Jefferson charge per unit? Note: Round to the nearest cent. $ 2. Sooner Industries charges a price of $136 and has fixed cost of $391,500. Next year, Sooner expects to...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 85,000 units and has fixed cost of $346,500. The variable cost per unit is $0.10. What price does Jefferson charge per unit? Note: Round to the nearest cent. $ 2. Sooner Industries charges a price of $98 and has fixed cost of $476,500. Next year, Sooner expects to...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $346,800. The variable cost per unit is $0.10. What price does Jefferson charge per unit? Note: Round to the nearest cent. $ 2. Sooner Industries charges a price of $116 and has fixed cost of $395,500. Next year, Sooner expects to...
Sales (4,000 units) $200,000 Variable expenses 110,000 Contribution margin 90,000 Fixed expenses 48,000 Net operating income...
Sales (4,000 units) $200,000 Variable expenses 110,000 Contribution margin 90,000 Fixed expenses 48,000 Net operating income $42,000 A)What is the contribution margin per unit? B)What is the contribution margin ratio? C)What is the variable expense ratio? D) If sales increase to 6,050 units, what would be the estimated net operating income? E) If the selling price decreases by $4 per unit and the sales volume increases by 200 units, what would be the estimated net operating income? F) If the...
1). Contribution Margin is: a). Sales - Total Variable expenses b). Sales - Total variable expenses...
1). Contribution Margin is: a). Sales - Total Variable expenses b). Sales - Total variable expenses - Total fixed expenses c). Sales revenue per unit x Sales quantity d). Variable expense per unit x Sales quantity 2). When preparing segmented income statements fixed expense are separated into the following categories: a). Traceable and common b).Fixed and Variable c).Direct and indirect d).Product and period 3).A Co. reported: Sales $125000; Contribution margin $62000; Total fixed expenses $42000; Common fixed expenses $15000. How...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT