Exercise 18-9 (Algo) Contribution margin and break-even LO P2Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company'sannual fixed costs are $735,300.(a) Compute the company's contribution margin per unit.Contribution margin(b) Compute the company's contribution margin ratio.11Numerator:(c) Compute the company's break-even point in units.1Numerator:Denominator:Numerator:Denominator:(d) Compute the company's break-even point in dollars of sales.11Denominator:= Contribution Margin RatioContribution margin ratio====Break-Even UnitsBreak-even unitsBreak-Even DollarsBreak-even dollars

Contribution margin is excess of selling price over variable cost of product . Break even point is…

Answered: Sunn Company manufactures a single…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue, costs and sales data on the two products appear below. Bangus P400 Tupig P600 Selling price per unit Variable cost per unit Number of units sold monthly 240 120 200 units 300 units Fixed costs and expenses are P704,000 per month. Required: a. Average contribution margin ratio. b. Composite breakeven point in units and in pesos. c. Allocation of composite breakeven point in units. d. Assuming the company increases its fixed costs and expenses by P140,800, how many units of Bangus and Tupig should be sold at breakeven point? e. Refer to the original data, assuming the sales mix between Bangus and Tupig is 500 units for Bangus and 300 units for Tupig, what is the new combined breakeven point in units and in pesos? f. Consider the original data, except that Pangasinan Company based its sales mix in units. Determine the following: i. Average UCM. ii. Composite BEP in units and in pesos.
Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.25/unit) Gross profit Operating expenses: Selling ($1,200 + $0.10/unit) Administrative ($3,500 + $0.20/unit) Operating income $34,400 22,775 $ 11,625 1,950 5,000 $ 4,675 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to 1. 11,250 units. 2. 3,750 units. d. Refer to your answer to part a for total revenues of $34,400. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase by $14,500. 2. Decrease by $3,000.
Exercise 18-8 (Algo) Computing missing amounts in contribution margin income statements LO A1 Compute the missing amounts in the contribution income statement shown below: (Round "Per Unit" answers to 2 decimal places.) Company A Company B Number of units sold Sales Variable costs es Contribution margin Fixed costs Income 2,275 Total Per unit Total Per unit $ 391,600 $ 89.00 259,600 100,100 131.950 50,050 $ 90.200
Problem Set: Module 4 1. EX.06.01 2. PR.06.02A.ALGO 3. BE.06.02.ALGO 4. BE.06.03.ALGO engagenow.com + 40 Contribution Margin Harry Company sells 36,000 units at $40 per unit. Variable costs are $34.00 per unit, and fixed costs are $103,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) b. Unit contribution margin (Round to the nearest cent.) c. Operating income $ : % per unit ?
Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 8,000 units. Cost formulas also are shown: Revenues $ 34,800 Cost of goods sold ($5,700 + $2.10/unit) 22,500 Gross profit $ 12,300 Operating expenses: Selling ($1,180 + $0.09/unit) 1,900 Administrative ($3,650 + $0.20/unit) 5,250 Operating income $ 5,150 Required: Prepare an income statement in the contribution margin format. Calculate the contribution margin per unit and the contribution margin ratio. Calculate the firm's operating income (or loss) if the volume changed from 8,000 units to 12,000 units. 4,000 units. Refer to your answer to part a for total revenues of $34,800. Calculate the firm’s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues Increase by $11,000. Decrease by $3,000.
14. Red Manufacturing produces a product at $25 per unit price, sells, 1,000 units and accrues $10,500 in variable cost. Which of the following is the contribution margin per unit? a. $11.50 b. $12.50 c. $13.50 d. $14.50
Question No. 5-2 HASF Corporation has fixed costs of 1,000,000 variable costs of 50 per units and a contribution margin ratio of 40% and no of units sold 20,000 Required: a. Compute the following • Units sales price and unit's contribution margin for the above product • The sales volume in units required for company to earn an operating income of 100,000 The $ sales volume required for company to earn an operating income of 300,000
Exercise 18-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $87 per unit. The company's annual fixed costs are $916,400. Management targets an annual income of $1,450,000. (1) Compute the unit sales to earn the target income. Numerator: 1 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = || = = || Units to Achieve Target Units to achieve target 0 Dollars to Achieve Target Dollars to achieve target 0
CLEAR MY CHOICE Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $90; Variable costs per unit includes: Direct material $15, Direct manufacturing labor $12, Manufacturing overhead $7, and Selling costs $6; Annual fixed costs $70,000. What is the contribution margin percentage? O a. None of the given answers O b. 44.4% O c. 70% O d. 62% O e. 55.6% NEXT PAGE AGE W nere to search
Exercise 4-12- Jolina Company has fixed costs of P1,200,000, variable costs of P24 per unit, and a contribution margin ratio of 40%. REQUIRED: 1. Compute for the following: a. Unit sales price, and unit contribution margin. b. The sales volume in units required for Jolina to earn an operating income of P600,000. c. The peso sales volume required for Jolina to earn an operating income of P600.000.
Question No.2 Menlo Company manufactures and sells a single product. The company’s sales and expenses for last quarter are as follows: Unit Cost $30 $12 $18 Total Cost $450,000 $180,000 $270,000 $216,000 $054,000 Sales. Less variable expenses.. Contribution margin. Less fixed expenses. Net operating income. Required: What is the B.E.P in units sold and in sales dollars? What is the total contribution at B.E.P? How many units must sold each quarter to earn a target profit of $90,000? Use the contribution margin method. Verify your answer by preparing a contribution format income statement at the target sales level. Refer to original data, compute the margin of safety in both dollars and %age terms. What is the company CM ratio? If sales increase by $50,000 per quarter by how much would you expect quarterly net operating income to increase?
1 2 The following information describes a product expected to be produced and sold by Hadley Company: Selling price Variable costs $80 per unit $32 per unit $630,000 Total fixed costs Required: a. Calculate the contribution margin ratio. b. Calculate the break-even point in dollar sales. c. What dollar amount of sales would be necessary to achieve a pretax income of $120,000? Edit Format Table 12pt v Paragraph | BIU V Αν BVT² V || : F2 F3 F4 -0- 2 W 9. # 3 E SA 4 F5 R F6 % 5 Ø T F7 < 다 6 F8 Y & 7 F9

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