McGyver Manufacturing Industries has two divisionsBasic and Premium. Each division has hundreds of different types of tennis
Question:
McGyver Manufacturing Industries has two divisions—Basic and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available:
Basic Division Premium Division Total
Sales $400,000 $600,000 $1,000,000
Variable costs 280,000 360,000
Contribution margin $120,000 $240,000
Total fixed costs $300,000
25. What is the weighted-average contribution margin ratio?
26. What is the break-even point in dollar sales?
27. The following monthly data are available for Joyce Company which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June?
28. Toto Manufacturing has fixed costs of $3,000,000 and variable costs are 40% of sales. What are the required sales if Toto desires a net income of $300,000?
29. Ronnie, Inc. is planning to sell 900,000 units for $1.50 per unit. The contribution margin ratio is 20%. If Ronnie will break even at this level of sales, what are the fixed costs?
30. In applying the high-low method, what is the unit variable cost?
Month Miles Total Cost
January 80,000 $192,000
February 50,000 160,000
March 70,000 188,000
April 90,000 260,000
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward