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Alex73 [517]
2 years ago
9

Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independe

nt situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $349,600. The variable cost per unit is $4.56. What price does Jefferson charge per unit? Note: Round your answer to the nearest cent. $ 2. Sooner Industries charges a price of $120 and has fixed cost of $458,000. Next year, Sooner expects to sell 15,600 units and make operating income of $166,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Enter the contribution margin ratio as a percentage, rounded to two decimal places. Variable cost per unit $ per unit Contribution margin ratio % 3. Last year, Jasper Company earned operating income of $22,500 with a contribution margin ratio of 0.25. Actual revenue was $235,000. Calculate the total fixed cost to the nearest whole dollar. $ 4. Laramie Company has a variable cost ratio of 0.56. The fixed cost is $103,840 and 23,600 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note: Round answers to the nearest cent. Price $ Variable cost per unit $ Contribution margin per unit $
Business
1 answer:
lesantik [10]2 years ago
5 0

Answer and Explanation:

The computation is shown below:

1. Given that    

Break even point units  115000 units  

Fixed cost = $349,600  

As we know that  

CM per unit is

=  Fixed cost  ÷  Break even units  

= $349,600  ÷ 115,000

= 3.04 per unit  

Now

Selling price = Variable cost  +CM per unit  

= $4.56 + $3.04

= $7.60 per unit  

2.  Given that

Net Income at 15600 units is $166,000  

Fixed cost = $458,000  

So,  

Contribution is

= $458,000 + $166,000

= $624,000  

Now

CM per unit is

= $624,000  ÷ 15,600

= 40 per unit  

Selling price per unit: 120  

So,  

Variable cost per unit is

= $120 - 40

= 80 per unit  

And,

CM ratio is

= CM per unit ÷ Selling price per unit  

= $40 ÷ 120 × 100

= 33.33%  

3. Given that      

Net Operating income = $22,500    

CM ratio = 25%    

Actual revenue = $235,000  

So,  

Contribution earned is

= $235,000 × 25%

= $58,750  

Now

Fixed cost = Contribution - Net income  

= $58,750 - $22,500

= $36,250  

4. Given that      

Variable cost ratio = 56%    

Fixed cost = $103,840    

Break even units= 23600 units

So,    

CM per unit is

= $103,840 ÷ 23,600

= $4.40  

CM ratio = 100 - 56% = 44%

And, the Selling price per unit is

= $4.40 ÷ 44%

= $10 per unit  

Now

Variable cost per unit is

= $10 × 56%

= $5.60 per unit  

And,

Contribution per unit is

= $10 × 44%

= $4.40 per unit

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Answer:

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Investment reported in Balance         <u>$3,027,000</u>

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8 0
2 years ago
A walking path at a local park is modeled on the grid below where the length of each grid square is 10 feet. The town needs to s
dem82 [27]

Answer:

The area of the walking path = 3,371 ft²

Explanation:

The complete Question is presented in the attached image to this solution

Note that the walking path consists of straight paths and curved paths.

The straight path is strictly squares, with 9 of them on both sides (top and bottom)

Area of the straight path = 18 × area of one square = 18 × 10² = 1800 ft²

For the curved path, note that their areas is the area between two semi circles.

Smaller semicircle has a radius of r = 20 ft.

Larger semicircle has a radius of R = 30 ft.

Area between the two semicircles = (Area of larger semicircle) - (Area of smaller semicircle)

= (πR²/2) - (πr²/2)

= (π×30²/2) - (π×20²/2)

= 785.4 ft²

But note that there are two of those curved paths, hence, area of the curved paths

= 2 × 785.4 = 1570.8 ft²

Total area of the walking path = (Area of straight path) + (Area of curved path)

= 1800 + 1570.8 = 3370.8 ft² = 3371 ft² to the nearest whole number.

Hope this Helps!!!

4 0
2 years ago
You have been approached by the editor of Gentlemen’s Magazine to carry out a research study. The magazine has been unsuccessful
horsena [70]

Answer:

The management research question capable of developing a scientific proposal will be questions that will address the concerns of the management.

1. How Gentlemen’s Magazine can be marketed to shoe manufacturers

2. What is the profitability of shoe manufacturing?

3. What are the main sources of sales for shoe manufacturer?

4. What percentage of clothing stores also deal in the sales of shoes?\

5. What is the percentage demand of male shoes?

6. What is the profitability of shoe sales in general?

7. Will men shoes be a profitable venture for Gentlemen’s magazine? and how profitable?

8. What is the frequency of purchase of men's shoes in a year?

9. How many pairs of shoes do men purchase at one time?

10. What types of men shoes are most likely to be purchase by men?

11. What is the preferred colors of shoes purchased by men?

Explanation:

The management research question capable of developing a scientific proposal will be questions that will address the concerns of the management.

1. How Gentlemen’s Magazine can be marketed to shoe manufacturers

2. What is the profitability of shoe manufacturing?

3. What are the main sources of sales for shoe manufacturer?

4. What percentage of clothing stores also deal in the sales of shoes?\

5. What is the percentage demand of male shoes?

6. What is the profitability of shoe sales in general?

7. Will men shoes be a profitable venture for Gentlemen’s magazine? and how profitable?

8. What is the frequency of purchase of men's shoes in a year?

9. How many pairs of shoes do men purchase at one time?

10. What types of men shoes are most likely to be purchase by men?

11. What is the preferred colors of shoes purchased by men?

8 0
2 years ago
Stanford Corporation has four categories of overhead. The expected overhead costs for each category for next year are as follows
aliina [53]

Answer:

Results are below.

Explanation:

a)

<u>First, we need to calculate the predetermined overhead rate:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 2,325,000 / 20,000

Predetermined manufacturing overhead rate= $116.25 per direct labor hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH=  116.25*375

Allocated MOH= $43,493.75

<u>b)</u>

Total cost= 5,000 + 7,500 + 43,493.75

Total cost= $55,993.75

<u>c)</u>

Selling price= 55,993.75*1.3

Selling price= $72,791.88

<u>d)</u>

<u>First, we need to calculate the activities rate:</u>

<u></u>

Maintenance= 210,000 / 10,000= $21 per machine hour

Materials handling= 90,000 / 2,000= $45 per material move

Setups= 75,000 / 100= $750 per setup

Inspection= 150,000 / 4,000= $37.5 per inspection

Now, we can allocate overhead:

Maintenance= 21*150= 3,150

Materials handling= 45*4= 180

Setups= 750*2= 1,500

Inspection= 37.5*3= 112.5

Total allocated costs= $4,942.5

8 0
1 year ago
A supply curve slopes upwards because a. ​the quantity supplied in insensitive to price b. ​an increase in price brings the quan
lapo4ka [179]

Answer:

The correct answer is the option C: the higher the price the higher the quantity that the sellers are willing to supply.

Explanation:

To begin with, to understand why the supply curve slopes upwards we need to understand that <u>there is a direct relationship</u> between the quantity that the suppliers are willing to sell and tha price of the product offered and therefore that when the price increases the amount that the suppliers will be willing to offer will increase due to that direct relationship and that is reason why the supply curve slopes upwards.

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2 years ago
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