1. For each of the following independent situations, calculate the contribution margin per unit and the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $1,000 per student. c. Decrease variable costs to $625 per student. d. Decrease fixed costs to $210,000. 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) CM per unit %3D Situation a. %3D Situation b. Situation c. %3D Situation d. %3D Now select the labels to show the formula for breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation. (Complete all answer boxes. Abbreviation used: CM = contribution margin.) Required sales in units %3D Situation a. Situation b. ( Situation c. %3D Situation d. + %3D 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $1,000 per student. c. Decrease variable costs to $625 per student. d. Decrease fixed costs to $210,000. 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) CM per unit %3D Situation a. %3D Situation b. Situation c. %3D Situation d. %3D Now select the labels to show the formula for breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation. (Complete all answer boxes. Abbreviation used: CM = contribution margin.) Required sales in units %3D Situation a. Situation b. ( Situation c. %3D Situation d. + %3D
Expert Answer:
Answer rating: 100% (QA)
1 Calculation of Contribution margin per Unit under each situation Selling Price per Unit 1250 Va... View the full answer
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
Posted Date:
Students also viewed these accounting questions
-
Figure 1 below shows the price and other information of an Apple bond from the site Investing.com Figure 1: Apple 3.85% bond information (from Investing.com) as of 22 July 2022 Apple Inc AAPL 3.85%...
-
Each of the following independent situations has one or more control activity weaknesses. 1. Board Riders Ltd. is a small snowboarding club that offers specialized coaching for snowboarders who want...
-
For each of the following independent items, indicate when revenue should be recognized. a. Interest on loans made by a financial institution, receivable in annual payments. b. Interest on loans made...
-
Coronado Industries has adopted the following production budget for the first 4 months of 2022. Each unit requires 4 pounds of raw materials costing $6 per pound. On December 31, 2021, the ending raw...
-
Should coercive power be the basis for developing a sales quota program for channel members?
-
Suppose the total benefit and total costs to society of various levels of pollution reduction are as follows: a. Complete Column (4). b. Use optimization in levels to show that if the US...
-
One of the many wonderful things about studying statistics is that graduate programs in statistics often pay their graduate students, which means that many graduate students in statistics are able to...
-
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:...
-
You have already learned that when preparing financial statements, management makes assertions about each account and the relate disclosures in the notes. Auditors then gather sufficient appropriate...
-
On April 18, 2011, Eli Lilly and Co. reported first- quarter profits for 2011 of $.95 per share. Analysts projected earnings to be $1.16 or $1.17 per share. However, Lilly reported non- GAAP earnings...
-
The U.S. Department of Defense (DOD) wishes to dedicate a large block of airspace over North Dakota, eastern Montana, and northwestern Minnesota to the exclusive use of various military unmanned...
-
Why does the project manager focus primarily on labor and equipment costs and less on materials, subcontracts, and project overhead?
-
Given the Supreme Court's "discovery" of penumbras in the Bill of Rights such as the right to privacy, should this right be extended to assisted suicide for terminally ill patients and/or access to...
-
What do you mean by the term Auditors Independence? How can you differentiate between Independence in fact and Independence in appearance? How the independence of an auditor can be ensured?
-
The construction team uses various models to describe the project that is to be built. What are the various models used by the construction team, and what does each depict?
-
The latest methodology adopted in auditing is the risk-based audit methodologyIn the light of the above statement, answer the following: (a) What is risk-based audit methodology? (b) Why audit risk...
-
what are laegal and regulatory requirements for vulnerabilty? identify legal,privacy and security issues and propose steps for ensuring compliance
-
You are standing at x = 9.0 km and your assistant is standing at x = 3.0 km. Lightning bolt 1 strikes at x = 0 km and lightning bolt 2 strikes at x = 12.0 km. You see the flash from bolt 2 at t = 10...
-
What is a transfer price? Discuss in detail.
-
Lampe Hearing Clinic is considering an investment that requires an outlay of $370,000 and promises a net cash inflow one year from now of $450,000. Assume the cost of capital is 12 percent. Required:...
-
Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per...
-
The magical elevator. There is a man who lives on the top floor of a very tall building. Every day he gets the elevator down to the ground floor to leave the building to go to work. Upon returning...
-
A murderer is condemned to death. He has to choose between three rooms. The first is full of raging fires, the second is full of assassins with loaded guns, and the third is full of lions that havent...
-
Five pieces of coal, a carrot, and a scarf are lying on the lawn. Nobody put them on the lawn, but there is a perfectly logical reason they should be there. What happened? How do you explain this?
Study smarter with the SolutionInn App