(Target Income + Fixed Cost) Sales Dollars Contribution Margin Ratio + $15,000) Sales Dollars = Step 3: Create a contribution margin income statement, to check your prev Sales Total variable expense Total contribution margin Total fixed expense Operating income
Q: For Crane Company, sales is $3000000, fixed expenses are $900000, and the contribution margin ratio…
A: Required sales in dollars to earn a target net income = (Fixed expenses + target net income ) /…
Q: 0 is the total fixed cost. What is the total units to be sold to arrive a profit of 146,000?
A: The units to be sold must cover the fixed cost and earn target profit Therefore Profit =…
Q: A Company has Sales of P1,457,900, a Contribution Margin Ratio of 35%, and Margin of Safety of…
A: Given that, sales = P1457900 Contribution margin ratio = 35% Margin of safety = P224000
Q: • Use the below information to fill out the income statement and answer the questions 4-10 below:…
A: Calculation of Net Income :- Operating leverage 5 =Contribution / Net Income ( EBIT) 5 EBIT =…
Q: For Sheridan Company, sales is $2000000, fixed expenses are $900000, and the contribution margin…
A: Solution: Fixed expenses = $900,000 Target net income = $700,000 Contribution margin ratio = 36%
Q: cion's contribution format income statement for last P 2,000,000 ble Costs 1400.000 ribution Margin…
A: Contribution margin ratio is the ratio of the contribution margin to sales revenue Breakeven point…
Q: Bloom Company predicts it will incur fixed costs of $255,000 and earn income of $427,500 in the next…
A: Total dollar sales = Fixed costs plus pretax income / Contribution margin ratio Variable costs =…
Q: 1. The following CVP income statements are available for ABC Company and XYZ Company. Sales Variable…
A: Break even point: It is a level of sales at which contribution is equal to fixed cost. It is a point…
Q: Complete the following problems using the following ratios:…
A: Break Even Point is the point where firms earns "No Profit & No Loss". This is the point where…
Q: From the following data, you are required to calculate- 1)P/V Ratio 2) Break even sales with the…
A: The ratio which shows the proportion of fixed expenses and profit in total sales figure is called as…
Q: A company would like to determine various costs and points to aid them in deciding whether to expand…
A: The Break-even point is the level of sales where the fixed cost is equal to the contribution margin.…
Q: he contribution margin ratio is 25% for your company and the break-even point in sales revenue is…
A: Break even sales in dollars = Fixed expense / Contribution Margin Ratio Contribution margin =…
Q: Complete the following problems using the following ratios:…
A: Break even point is sales at which the operating income is zero that means fixed cost and variable…
Q: Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.)…
A: Calculate the contribution margin per unit.
Q: Find out BEP in units and value with the following data: Fixed cost - $50000 Variable cost - $40…
A: BEP in units : Fixed Cost/ (Selling Price per unit - Variable Cost Per unit) BEP in value : Fixed…
Q: Calculate the break even number of units if the fixed expenses are $7,000 and the contribution…
A: Given, Fixed expenses = $7000 Contribution margin per unit = $14
Q: Compute the contribution margin ratio using the following data: sales, $5,000; total variable cost,…
A: This ratio indicates the amount of revenue needed to cover the fixed costs of the business.
Q: If the contribution margin ratio is 55%, target operating income is $30,000, and the sales revenue…
A: As per the question we know that contribution margin ratio is 55%Contribution margin ratio=…
Q: If the variable cost is P15/unit, fixed cost is 265,000; and Sales is P55. Find the BEPs, and BEPx.…
A: Profit analysis equation With units sold (Q), variable cost per unit (VC), Fixed cost (FC) and price…
Q: Calculate the following: (a) Prime cost (b) Factory cost (c) Production cost
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Fill in the missing amounts in each of the eight case situations below. Each case is independent of…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…
Q: Based on the following data, illustrate the break-even point by preparing a cost-volume-profit…
A: Marginal Costing - Marginal Costing is the method of computing operating profit by bifurcating…
Q: Let's try another version of Example #6 in the example packet. Suppose Revenues are $535,311 Cost of…
A: Contribution margin income statement is prepared as follows:
Q: Management anticipates fixed costs of $74,100 and variable costs equal to 36% of sales. What will…
A: Pretax income refers to the income before taxes. It is computed by subtracting all the operating…
Q: Kreter, Inc. earned net income of $300,000 last year. This year it wants to earn net income of…
A: Cost-Volume-Profit (CVP) Analysis: It is the technique of managerial accounting that examines how…
Q: sales revenue is $35,000, fixed cost is $5,000, and net operation income is $10,000, what is the…
A: The contribution margin is calculated by deducting the variable cost from the sales revenue of the…
Q: The following information describes a product expected to be produced and sold by Hadley Company:…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: The total revenue function for a product is given by R=805 x dollars, and the total cost function…
A: The revenue can be computed by deducting the production cost from the profit. Break-even point is…
Q: 1. Calculate the contribution margin rate, the sales dollar breakeven point, and the unit sales…
A: Contribution margin the contribution of sales towards recovery of fixed costs of the company.…
Q: If sales are $500,000, variable cost are $200,000, and fixed costs are $240,000, what is the…
A: Contribution margin = Selling price - Variable cost Contribution margin ratio = (Contribution/Sales)…
Q: For the coming year, Bepis Inc. anticipates fixed costs of $700,000, a unit variable cost of $85,…
A: Cost volume analysis depicts how change in variable costs, fixed costs and sales volume affects the…
Q: maximum profit u
A: Production level refers to the chances of an increase in the special requests of customers for a…
Q: Complete the following problems using the following ratios:…
A: Break even point at target profit is the point at which the sales generate the target profit. Hence,…
Q: Hei Below is the contribution format income statement for a company based on a sales volume of 1,000…
A:
Q: Zachia Ltd provides the following data regarding its four product lines: Product Sales mix Y 60 20…
A: Break-even analysis is a technique used by the management to determine the number of units need to…
Q: Dry Cleanars has doeaminad the about the conte: Total vara 542,000 and 530,000 ad tobre850,000.…
A: Contribution Margin Ratio (CMR) CMR = Contribution / Sales x 100. Contribution = Sales - Variable…
Q: Complete the following problems using the following ratios:…
A: Break Even Point is the point where firms earns "No Profit & No Loss". This is the point where…
Q: A projected income statement of Hailwork’s company for the coming year follows: Sales $506300…
A: “Since you have asked multiple sub-parts, we will solve the first three sub-part for you. If you…
Q: 1. The following CVP income statements are available for ABC Company and XYZ w ompany. АВС Сompany…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub-parts for…
Q: For Ivanhoe Company, variable costs are 66% of sales, and fixed costs are $183,000. Management's net…
A: We know that under marginal costing Profit = Sales Revenue - Total Variable cost - Total Fixed…
Q: Contribution Margin Ratio a. Imelda Company budgets sales of S1,800,000, fixed costs of $394,000,…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Using this information, what is Your Company's expected total contribution margin when 5,000 units…
A: Contribution margin per unit = Sales price per unit * Contribution margin ratio
Q: Compute the required sales in dollars needed to achieve management’s target net income of $102,100.
A:
Q: Nocum Corporation has provided the following contribution format income statement. Assume that the…
A: Contribution margin per unit = contribution margin / no. Of units sold = $30000/3000 units = $10…
Q: Assume that the linear cost and revenue models apply. An item costs $12 to make. If fixed costs are…
A: According linear model: R(x) = mx +c Total revenue = Total cost + Profit Total revenue =…
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- Using the information for Lighthizer Trading Company, prepare the income statement to include all costs, but separate out uncontrollable costs. Insert subtotals where appropriate (include one for operating income) before the uncontrollable costs. Income tax expense should be based on all expenses (that is, it will be the same amount as in the previous exercise). Calculate net income, profit margin, ROI, and RI excluding uncontrollable expenses. Prepare a short response to accompany the income statement that explains why uncontrollable costs are separated in the income statement.What is meant by a products contribution margin ratio and how is this ratio useful in planning business operations?Which of the following represents the components of the income statement for a manufacturing business? A. Sales Revenue - Cost of Goods Sold = gross profit B. Service Revenue - Operating Expenses = gross profit C. Service Revenue - Cost of Goods Manufactured = gross profit D. Sales Revenue - Cost of Goods Manufactured = gross profit
- APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company’s product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a…1. how would a cost volume profit analysis would be performed for a company that sells more than one product when the sales mix is known?. A company can use cost-volume-profit analysis to determine the level of sales required to earn a target profit. TRUE OR FALSE
- What can the weighted average contribution margin ratio be used for? To solve for a measure, at any level of sales volume, of the sensitivity of operating profit to changes in volume. Breakeven and profit planning for sales volume expressed in dollars (Y) rather than units (Q). To calculate an average per-unit contribution margin based on an assumed sales mix. To figure out the relative proportion in which a company’s products (or services) are sold. To determine the extent of fixed costs in an organization’s cost structure.For CVP analysis calculations, which of the following statements is correct? A. In target profit calculations, sales revenue is less than total costs. B. CVP analysis relies on our knowledge of cost function to express relationships among costs, sales volume, and profit. OC. A company's sales mix is ultimately determined by the management of a company. D. The Break-even point is the point at which operating income is greater than $0. O E. If sales volume is expected to be higher than the indifference point, management should choose the cost structure with the higher fixed costs.Tennair Corporation manufactures cooling system components. The company has gathered the following information about two of its customers: Evans Equipment and Rogers Refrigeration. Evans Equipment Sales revenue Rogers Refrigeration $ 160,000 61,000 Cost of goods sold General selling costs $ 229,000 102,000 37,000 23,800 28,500 General administrative costs 17,850 Cost-driver data used by the firm and traceable to Evans and Rogers are: Customer Activity Sales activity Order taking Special handling Special shipping Customer Activity Sales activity Order taking Special handling Special shipping Cost Driver Sales visits Sales orders Units handled Shipments Evans Equipment 12 visits 31 orders 460 units. 33 shipments Pool Rate $ 970 278 44 460 Rogers Refrigeration 9 visits 36 orders 410 units 44 shipments Required: A. Perform a customer profitability analysis for Tennair. Compute the gross margin and operating income on transactions related to Evans Equipment and Rogers Refrigeration.
- Match each of the following descriptions with the appropriate term. Clear All Plots only the difference between total sales and total costs Indicates the possible decrease in sales that may occur before operating loss results Graphically shows costs, sales, and operating profit or loss at various levels of units sold The relative distribution of sales among products sold by a company Contribution margin divided by operating income Profit-volume chart Cost-volume-profit chart Operating leverage Margin of safety Sales mixAn analyst is constructing a simple model to determine the gross and net profit of a product, given its profit per unit, quantity sold, and the total costs assigned to the product. The calculation for gross profit is Profit per Unit times Quantity. The calculation for Net Profit is Gross Profit minus Total Costs. A B 1. 2 Profit per Unit 8 3 Quantity |10,100 4 Gross Profit 5 6 Total Costs 6,100 7 8 Net Profit With the values for Profit per Unit, Quantity, and Total Costs shown above, what should the model return for the following calculated cells? Cell Value Gross Profit Net ProfitUsing the table below, create a line chart in which profit or loss is plotted on the Y-axis and sales volume is plotted on the X-axis. This is commonly called a profit/volume chart. Although sales volume can be expressed in either units or dollars, use units for your chart. Complete the Chart Tickler Data Table to include a column for profits. Use this table as a basis for preparing the chart. Cost-Volume-Profit Analysis Data Section Income Statement in a Contribution Margin Fixed Variable Particulars Amounts Production costs Projected unit sales 120,000 Direct materials $2.30 Selling price per unit $16.00 Direct labor 4.70 Less Vairable Cost Factory overhead $225,000 3.00 Direct materials $2.30 Selling expenses Direct labor 4.70 Sales salaries & commissions 97,000 0.75 Factory overhead…