Question

Carla Vista Bucket Co., a manufacturer of rain barrels, had the following data for 2019.

Sales | 2,330 | units | |

Sales price | $70 | per unit | |

Variable costs | $42 | per unit | |

Fixed costs | $32,620 |

(a)

Correct answer iconYour answer is correct.

What is the contribution margin ratio?

Contribution margin ratio | % |

(b)

Correct answer iconYour answer is correct.

What is the break-even point in dollars?

Break-even point |
$ |

(c)

What is the margin of safety in dollars and as a ratio?

Margin of safety |
$ |
||

Margin of safety ratio | % |

(d)

If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant?

Total increase in sales required: |
$ |

Answer #1

Answer.

a) contribution margin Ratio=40%

b) Break even point in dollars=$81550

c) Margin of safety =$81550, Margin of safety ratio=50%

d) Total increase in sales=$19572

Part d)

Oriole Bucket Co., a manufacturer of rain barrels, had the
following data for 2019.
Sales
2,940
units
Sales price
$50
per unit
Variable costs
$40
per unit
Fixed costs
$11,760
(a)
Correct answer iconYour answer is correct.
What is the contribution margin ratio?
Contribution margin ratio
enter the Contribution margin ratio in percentages
%
(b)
Correct answer iconYour answer is correct.
What is the break-even point in dollars?
Break-even point
$enter the break-even point in dollars
(c)
Margin of safety...

Pharoah Bucket Co., a manufacturer of rain barrels, had the
following data for 2019.
Sales
2090
units
sales price
55
per unit
variable cost
33
per unit
fixed cost
22990
Already solved:
Break even point = 57475
margin of safety = 57475
margin of safety ration = 50%
Needs solving:
1. if the company wishes to increase its total dollar
contribution margin by 30% in 2020, by how much will it need to
increase its sales if selling price per...

Oriole Bucket Co., a manufacturer of rain barrels, had the
following data for 2019.
Sales
2,940
units
Sales price
$50
per unit
Variable costs
$40
per unit
Fixed costs
$11,760
(a)
What is the contribution margin ratio?
Contribution margin ratio
enter the Contribution margin ratio in percentages
%

Exercise 18-17 (Part Level Submission) Felde Bucket Co., a
manufacturer of rain barrels, had the following data for 2016.
Sales 2,000 units Sales price $30 per unit Variable costs $18 per
unit Fixed costs $11,520 Collapse question part (a) Correct answer.
Your answer is correct. What is the contribution margin ratio?
(Round answer to 0 decimal places, e.g. 5,275.) Contribution margin
ratio Entry field with correct answer 40 % Click if you would like
to Show Work for this question:...

Carla Vista Company makes radios that sell for $50 each. For the
coming year, management expects fixed costs to total $163,530 and
variable costs to be $35 per unit.
Compute the break-even point in dollars using the contribution
margin (CM) ratio.
Break-even point
$
Compute the margin of safety ratio assuming actual sales are
$790,000. (Round margin of safety ratio to 2 decimal
places, e.g. 10.50.)
Margin of safety
%
Compute the sales dollars required to earn net income of...

Carla Vista Monograms sells stadium blankets that have been
monogrammed with high school and university emblems. The blankets
retail for $43 throughout the country to loyal alumni of over 3,800
schools. Carla Vista’s variable costs are 41% of sales; fixed costs
are $118,000 per month.
(a1)
Correct answer iconYour answer is correct.
Calculate contribution margin ratio. (Round ratio to
2 percentage places, e.g. 0.38 = 38%.)
Contribution margin ratio
%
eTextbook and Media
Attempts: 2 of 12 used
(a2)...

Carla Vista Monograms sells stadium blankets that have been
monogrammed with high school and university emblems. The blankets
retail for $43 throughout the country to loyal alumni of over 3,800
schools. Carla Vista’s variable costs are 41% of sales; fixed costs
are $118,000 per month.
(a1)
Correct answer iconYour answer is correct.
Calculate contribution margin ratio. (Round ratio to
2 percentage places, e.g. 0.38 = 38%.)
Contribution margin ratio
%
eTextbook and Media
Attempts: 2 of 12 used
(a2)...

Blanchard Company manufactures a single product that sells for
$110 per unit and whose total variable costs are $88 per unit. The
company’s annual fixed costs are $308,000.
(1) Prepare a contribution margin income statement for Blanchard
Company at the break-even point.
BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
Amount
Percentage
of sales
Sales
Variable costs
Contribution margin
Fixed costs
Net income
Sales
Variable costs
Contribution margin
Fixed costs
Net income
%
Sales
Variable costs
Contribution margin
Fixed costs...

Carla Vista Company bottles and distributes B-Lite, a diet soft
drink. The beverage is sold for 50 cents per 16-ounce bottle to
retailers, who charge customers 75 cents per bottle. For the year
2020, management estimates the following revenues and costs.
Sales
$2,000,000
Selling expenses—variable
$109,000
Direct materials
550,000
Selling expenses—fixed
58,000
Direct labor
400,000
Administrative expenses—variable
21,000
Manufacturing overhead—variable
420,000
Administrative expenses—fixed
52,000
Manufacturing overhead—fixed
190,000
Prepare a CVP income statement for 2020 based on management’s
estimates. Calculate variable...

Blanchard Company manufactures a single product that sells for
$100 per unit and whose total variable costs are $76 per unit. The
company’s annual fixed costs are $338,400.
(1) Prepare a contribution margin income statement for Blanchard
Company at the break-even point.
BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
Amount
Percentage
of sales
%
Sales
Variable costs
Contribution margin
Fixed costs
$
(2) Assume the company’s fixed costs increase by $126,000. What
amount of sales (in dollars) is needed...

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