Question

A company produces a single product, and the associated data were as follows: number of units...

A company produces a single product, and the associated data were as follows: number of units sold 10,000; unit sale price 50 riyals; unit variable cost 25 riyals; and total fixed costs 200,000 riyals. Calculate the unit's contribution margin, total contribution margin and contribution margin ratio.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans : Contribution Margin is the amount of Revenue available after providing for Variable cost to cover for fixed cost and contribute to Net profit.

a) Unit's Contribution Margin = Sellin price per unit - Variable Cost per unit

   = 50 riyals - 25 riyals

= 25 riyals

b) Total Contribution margin = Units sold * Unit's contribution margin

= 10,000 units * 25 riyals

= 250,000 riyals

c) Contribution Margin Ratio =(Unit's contribution margin / Selling price per unit) * 100

= (25 riyals / 50 riyals ) * 100

= 50%
  

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming...
Basic Cost-Volume-Profit Concepts Klamath Company produces a single product. The projected income statement for the coming year is as follows: Sales (47,900 units @ $26.00) $1,245,400 Total variable cost 398,528 Contribution margin $ 846,872 Total fixed cost 914,056 Operating income $ (67,184) Required: 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? $...
Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units. Production costs for the year were as follows: Direct materials $ 265,468 Direct labor $ 171,157 Variable manufacturing overhead $ 300,398 Fixed manufacturing overhead $ 454,090 Sales totaled $1,330,550 for the year, variable selling and administrative expenses totaled $170,430, and fixed selling and administrative expenses totaled $261,975. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...
t14 A manufacturing company that produces a single product has provided the following data concerning its...
t14 A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 88 Units in beginning inventory 0 Units produced 5,200 Units sold 4,900 Units in ending inventory 300 Variable costs per unit: Direct materials $ 12 Direct labor $ 23 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 161,200 Fixed selling and administrative expense $ 63,700 The...
. DCK (Pty) Ltd produces a single product. You were given the following information regarding the...
. DCK (Pty) Ltd produces a single product. You were given the following information regarding the product: Pula (per unit) Selling price 60.00 Variable production costs 12.00 Variable selling cost 4.00 Fixed production cost 40.00 Fixed selling cost 8.00 Budgeted production is 10,000 units. Required: Determine the following: a. Breakeven point in units b. Number of units to be sold if the company wants to achieve a profit of P110,000. c. Breakeven point in Pula, if the variable production cost...
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units. Production costs for the year were as follows: Direct materials $ 248,250 Direct labor $ 145,640 Variable manufacturing overhead $ 274,730 Fixed manufacturing overhead $ 595,800 Sales totaled $1,320,500 for the year, variable selling and administrative expenses totaled $164,020, and fixed selling and administrative expenses totaled $205,220. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...
2. Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per...
2. Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 170 100 % Variable expenses 68 40 % Contribution margin $ 102 60 % Fixed expenses are $346,000 per month. The company is currently selling 4100 units per month. Required: Calculate the Following: Contribution Margin Ratio: % Break Even point in Sales Dollars (rounded to the whole dollar) $ Margin of Safety in Units (nearest whole units)...
Hanks Corporation produces a single product. Operating data for the company and its absorption costing income...
Hanks Corporation produces a single product. Operating data for the company and its absorption costing income statements for the last two years are presented below: Yearl Year 2 Units in beginning inventory 0 1,000 Units produced 9,000 9,000 Units sold 8,000 10,000 Year 1 Year 2 Sales $80,000 $100,000 Cost of goods sold 48 000 60 000 Gross margin 32,000 40,000 Selling and administrative expenses 28 000 30 000 Net operating income $4,000 $10,000 Variable manufacturing costs are $4 per...
Blue Co. produces a single product with the following information available Number of units produced annually...
Blue Co. produces a single product with the following information available Number of units produced annually 50,000 Variable cost per unit: Direct materials, direct labor and variable mfg.overhead $ 20 selling and admin expenses $ 5 Fixed costs per year: Mfg.Overhead $ 175,000 selling and Admin exp $ 200,000 Unit Product Cost? Absorption Variable Direct materials, direct labor, and costing costing Variable mfg overhead $20 $20 Fixed mfg. Overhead ?? ? Unit Product Cost ?
Kaiser's Kraft Korner sells a single product. 7,000 units were sold resulting in $70,000 of sales...
Kaiser's Kraft Korner sells a single product. 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of variable costs, and $12,000 of fixed costs. Contribution margin per unit is: [[selectone]] a. $4 b. $6 c. $8.28 d. $4.29
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:      Number...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:      Number of bikes produced and sold 500 820 960 Total costs Variable costs $ 118,500 $ ? $ ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? $ 518.75 ?       Required: 1. Complete the table. (Round your "Cost...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT