Chavez Company has two product lines—M and P. Line M had sales
of $200,000 during October,...
Chavez Company has two product lines—M and P. Line M had sales
of $200,000 during October, a segment margin of 20%, and traceable
fixed expenses of $30,000. The company as a whole had a
contribution margin ratio of 30% and $135,000 in total contribution
margin. Based on this information, total variable expenses for
product P must have been: A)$130,000. B)$155,000. C)$185,000.
D)$315,000. show process
Chavez Company has two product lines—M and P. Line M had sales
of $200,000 during October,...
Chavez Company has two product lines—M and P. Line M had sales
of $200,000 during October, a segment margin of 20%, and traceable
fixed expenses of $30,000. The company as a whole had a
contribution margin ratio of 30% and $135,000 in total contribution
margin. Based on this information, total variable expenses for
product P must have been: A)$130,000. B)$155,000. C)$185,000.
D)$315,000. Answer: C Show process thanks. why is c
Product
Wham
Blam
sales
300,000
200,000
less variable cost
180,000
130,000
contribution margin
120,000
70,000
less...
Product
Wham
Blam
sales
300,000
200,000
less variable cost
180,000
130,000
contribution margin
120,000
70,000
less Fixed cost
90,000
60,000
Income (loss) from operations
30,000
10,000
Management is considering the discontinuance of the manufacture
and sale of Blam at the beginning of the current year. The
discontinuance would have no effect on the total fixed costs and
expenses or on the sales of Wham
What is the amount of change in net income for the current year
that will result...
22. Praline Company is considering whether to discontinue one of
its departments, and a study has...
22. Praline Company is considering whether to discontinue one of
its departments, and a study has been conducted for this purpose.
The contribution margin in the department is $200,000 per year. The
fixed expenses charged to the department are $260,000 per year. It
is estimated that $160,000 of these fixed expenses will be
eliminated if the department is discontinued. If the department is
discontinued, what is the effect on the company's overall net
operating income?
The overall net operating income...
BM Company sells two products, X and Y. Product X sells for $20
per unit with...
BM Company sells two products, X and Y. Product X sells for $20
per unit with variable costs of $11 per unit. Product Y sells for
$30 per unit with variable costs of $16 per unit. During this
period, BM sold 16,000 units of X and 4,000 units of Y, making
Total Revenue of $440,000, and after subtracting variable cost got
Total Contribution Margin of $200,000, and after subtracting Total
Fixed Cost of $110,000, earned Operating Profit of $90,000. The...
testing inc. had the following
amounts for the year:
direct materials $8 per
unit
direct labor...
testing inc. had the following
amounts for the year:
direct materials $8 per
unit
direct labor $15 per unit
variable overhead $5 per
unit
fixed overhead $90,000
variable selling expenses $3 per
unit
fixed selling and admin expenses
$150,000
75,000 units produxed
65,000 units sold af $45
each
calculate the VARIABLE product
cost per unit and prepare a contribution margin income statement
under variable costing in order to complete the reat of the
information
a) variable product cost per unit...
BM Company sells two products, X and Y. Product X sells for $20
per unit with...
BM Company sells two products, X and Y. Product X sells for $20
per unit with variable costs of $11 per unit. Product Y sells for
$30 per unit with variable costs of $16 per unit. During this
period, BM sold 16,000 units of X and 4,000 units of Y, making
Total Revenue of $440,000, and after subtracting variable cost got
Total Contribution Margin of $200,000, and after subtracting Total
Fixed Cost of $110,000, earned Operating Profit of $90,000. The...
Wasilko Corporation has two departments, Kids and Adults. The
company’s most recent monthly contribution format income...
Wasilko Corporation has two departments, Kids and Adults. The
company’s most recent monthly contribution format income statement
follows:
Department
Total
Kids
Adults
Sales
$4,200,000
$3,000,000
$1,200,000
Variable expenses
2,000,000
1,500,000
500,000
Contribution Margin
2,200,000
1,500,000
700,000
Fixed Expenses
2,200,000
1,300,000
900,000
Net operating income (loss)
0
200,000
(200,000)
A study indicates that $50,000 of the fixed expenses being
charged to the Adults Department are sunk costs or allocated costs
that will continue even if the Adults Department is dropped. In...
Bed & Bath, a retailing company, has two departments,
Hardware and Linens. The company’s most recent...
Bed & Bath, a retailing company, has two departments,
Hardware and Linens. The company’s most recent monthly contribution
format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,340,000
$
3,150,000
$
1,190,000
Variable
expenses
1,361,000
946,000
415,000
Contribution
margin
2,979,000
2,204,000
775,000
Fixed expenses
2,220,000
1,380,000
840,000
Net operating income
(loss)
$
759,000
$
824,000
$
(65,000
)
A study indicates that $378,000 of the fixed expenses being
charged to Linens are sunk costs or allocated costs that will...
Adidas manufactures two products; the following
contribution format income statement shows that product B is not...
Adidas manufactures two products; the following
contribution format income statement shows that product B is not
performing well:
Details
Total
Product G
Product B
Sales
430,000
320,000
110,000
Variable expenses
300,000
210,000
90,000
Contribution margin
160,000
110,000
20,000
Fixed expenses:
Rent
30,000
20,000
10,000
Depreciation
15,000
10,000
5,000
Maintenance
20,000
14,000
6,000
Supervisor salaries
48,000
28,000
20,000
manufacturing overhead
16,000
12,000
4,000
Net Income (loss)
1,000
26,000
(25,000)
Additional Information:
Rent is for one plant space where the two products...