Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Jeong Company prepared the...
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Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Jeong Company prepared the following projected income statement: Sales Total Variable cost Contribution margin Total Fixed cost Operating income Required: $92,000 67,160 $24,840 9,990 $14,850 1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number. % 2. Calculate the variable cost ratio. Note: Enter as a percent, rounded to the nearest whole number. % 3. Calculate the break-even sales revenue for Jeong. Note: Round your answer to the nearest dollar. $ Belham Company produces and sells disposable foil baking pans to retailers for $3.45 per pan. The variable cost per pan is as follows: Direct materials Direct labor Variable factory overhead Variable selling expense $0.67 0.86 0.63 0.19 Fixed manufacturing cost totals $111,425 per year. Administrative cost (all fixed) totals $48,350. Required: 1. Compute the number of pans that must be sold for Belham to break even. Break-even units pans 2. Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent. Unit variable cost Unit variable manufacturing cost Which is used in cost-volume-profit analysis? $ Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (90,700 units @ $27.00) Total variable cost Contribution margin Total fixed cost Operating income Required: $2,448,900 685,692 $1,763,208 1,905,120 $ (141,912) 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin Break-even units $ units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. Contribution margin ratio Break-even sales revenue % Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be? Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Jeong Company prepared the following projected income statement: Sales Total Variable cost Contribution margin Total Fixed cost Operating income Required: $92,000 67,160 $24,840 9,990 $14,850 1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number. % 2. Calculate the variable cost ratio. Note: Enter as a percent, rounded to the nearest whole number. % 3. Calculate the break-even sales revenue for Jeong. Note: Round your answer to the nearest dollar. $ Belham Company produces and sells disposable foil baking pans to retailers for $3.45 per pan. The variable cost per pan is as follows: Direct materials Direct labor Variable factory overhead Variable selling expense $0.67 0.86 0.63 0.19 Fixed manufacturing cost totals $111,425 per year. Administrative cost (all fixed) totals $48,350. Required: 1. Compute the number of pans that must be sold for Belham to break even. Break-even units pans 2. Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent. Unit variable cost Unit variable manufacturing cost Which is used in cost-volume-profit analysis? $ Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (90,700 units @ $27.00) Total variable cost Contribution margin Total fixed cost Operating income Required: $2,448,900 685,692 $1,763,208 1,905,120 $ (141,912) 1. Compute the unit contribution margin and the units that must be sold to break even. Unit contribution margin Break-even units $ units 2. Suppose 10,000 units are sold above breakeven. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. Contribution margin ratio Break-even sales revenue % Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be?
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