1. Exercise 18-8 Contribution Margin LO A1

A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $205 per pair and cost $164 per pair in variable costs to make.

2. Exercise 18-9 Contribution margin and break-even LO P2

Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The companys annual fixed costs are $562,500.

3. Exercise 18-11 Income reporting and break-even analysis LO C2

Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The companys annual fixed costs are $562,500.

4. Exercise 18-12 Computing sales to achieve target income LO C2

Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The companys annual fixed costs are $562,500. Management targets an annual pretax income of $1,012,500.

5. Exercise 18-13 Forecasted income statement LO C2

Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The companys annual fixed costs are $562,500. The sales manager predicts that annual sales of the companys product will soon reach 40,000 units and its price will increase to $200 per unit. According to the production manager, the variable costs are expected to increase to $140 per unit but fixed costs will remain at $562,500. The income tax rate is 20%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes?

Prepare a forecasted contribution margin income statement.

6. Exercise 18-15 Computation of variable and fixed costs LO C2

Cooper Company expects to sell 200,000 units of its product next year, which would generate total sales of $17 million. Management predicts that pretax net income for next year will be $1,250,000 and that the contribution margin per unit will be $25.

Complete the below table to calculate the next years total expected variable costs and fixed costs.

7. Exercise 18-22 CVP analysis using composite units LO P4

Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $200 and of each door is $500. The variable cost of a window is $125 and of a door is $350. Fixed costs are $900,000.

Exercise 18-8 Contribution margin LO A1 A jeans maker is designing a new line of jeans called S The jeans will sell for S205 per pair and cost $164 per pair in variable costs to make. (1) Compute the contribution margin per pair Contribution margin (2) Compute the contribution margin ratio Choose Numerator: Choose Denominator: Contribution margin ratio Contribution margin ratio