Question: ter the machine is Installed. Calculate the Contribution margin, Break even and CVP come statements for both options at 30,000 units. Recommend the best option

ter the machine is Installed. Calculate the Contribution margin, Break even and CVP come statements for both options at 30,000 units. Recommend the best option and Alternative 1 ariable costs per/unit $20 Selling price per unit $40 Fixed costs $200,000 Income tax rate 25% Units Sales $40 Contribution Margin Ratio Variable Cost $20 $20 50.00% Contribution Margin $20 $40 eak Even In Units Fix cost $200,000 10,000 CM# $20 eak Even In Sales Dollars Fix cost $200,000 $ 400,000 CM% 50.00% Alternative 2 ariable costs per/unit Selling price per unit $40 Fixed costs $274,400 Income tax rate 25% Units Sales $40 Contribution Margin Ratio Variable Cost $12 $28 70.00% Contribution Margin $28 $40

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Calculation practice: Addition rule. When women are asked to rate Brussels sprouts, 30% say sprouts are very repulsive, 20% say that they are somewhat repulsive, 43% are indifferent, 6% say sprouts...

ter the machine is Installed. Calculate the Contribution margin, Break even and CVP come statements for both options at 30,000 units. Recommend the best option and Alternative 1 ariable costs...

Q7 Midland Company is analyzing two alternative methods of producing its product. The production manager indicates that variable costs can be reduced 40% by installing a machine that automates...

PROFITABILITY & LIQUIDITY. SOLVENCY, & EFFICIENCY RATIOS 2023 - 2022 Bats is in AWWices Apple Inc. wants to conduct a comparative Ratio Analysis of their last 2 years to reveal insight into their...

Briefly discuss the cost-volume-profit analysis model and how it is used. Use the attached PDF. APA Citation. 300 words. REVISED PAGES 3 Chapter Three 1 Fundamentals of Cost-Volume-Prot Analysis...

Assignment: Brief 2: Portal Corporation Purpose To assess your ability to: define and illustrate a cost object distinguish between direct costs and indirect costs explain variable costs and fixed...

Montonya Company has the following selected data for the current year: Sales (10,000 units) $90,000 Direct materials 30,000 Direct labor costs 10,000 Variable manufacturing overhead 3,500 Fixed...

I have attached the corresponding lessons for assignment 8, it usually includes practice problems at the bottom that look similar to the assignment. ASSIGNMENT 7 JOB ORDER COSTING Directions: After...

Rank the following compounds in order of increasing acidity from low to high in acidity: (1) CHCH2C (2) 3C3 (3) CCl;CO2H (4) CH3CH2CO2H (5) CH3CH2OH (6) (CH3CH2)2NH a. 6

Create a time series plot with z1, z2, z3, PC1, PC2, and PC3. Remember that it might be more appropriate to plot a negative principal component (e. g., PC1 instead of PC1), since the sign of each...

Laura Lopez sells carpets for $ 6 8 0 each. She purchases each carpet for $ 2 7 2 and spends $ 5 1 , 0 0 0 for fixed costs. Calculate the revenues needed to obtain an operating profit of $ 2 6 , 0 0...

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....