Question

1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 10.

Quiz Company sells its product for $10 per unit. Variable costs are $6 per unit and fixed costs are $15,000 per week. During the third week of July, Quiz Company sold 5,000 units.

Determine the total contribution margin for the week.

2. Determine the operating income for the week.

3. Determine the contribution margin ratio.

4. Determine the number of units Quiz Company must sell to break even.

5. Determine the number of units Quiz Company must sell to earn operating income of $8,000.

6. Determine the sales revenue (in dollars) Quiz Company must generate to break even.

7. Determine the sales revenue (in dollars) Quiz Company must generate to earn operating income of $8,000.

8. Determine the margin of safety in units for the week.

9. Determine the margin of safety in dollars for the week.

10. Suppose Quiz Company increased spending for advertising by $2,500 per week. As a result, sales in the fourth week increased by $5,000 compared to the third (current) week.

Determine the operating income earned in the fourth week.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

Answer #1

Information concerning a product produced by Ender Company
appears here:
Sales price per unit
$
174
Variable cost per unit
$
76
Total annual fixed manufacturing and operating costs
$
617,400
Required
Determine the following:
Contribution margin per unit.
Contribution margin ______ per unit
Number of units that Ender must sell to break even.
Break-Even in units ______
Sales level in units that Ender must reach to earn a profit of
$245,000.
Sales in units ______
Determine the margin of...

Information concerning a product produced by Ender Company
appears here:
Sales price per unit
$
162
Variable cost per unit
$
89
Total annual fixed manufacturing and operating costs
$
467,200
Required
Determine the following:
Contribution margin per unit.
Number of units that Ender must sell to break even.
Sales level in units that Ender must reach to earn a profit of
$182,500.
Determine the margin of safety in units, sales dollars, and as
a percentage.

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Calculator
Break-Even Units, Contribution Margin Ratio, Multiple-Product
Breakeven, Margin of Safety, Degree of Operating Leverage
Jellico Inc.'s projected operating income (based on sales of
450,000 units) for the coming year is as follows:
Total
Sales
$ 9,000,000
Total variable cost
5,310,000
Contribution margin
$ 3,690,000
Total fixed cost
2,476,400
Operating income
$ 1,213,600
Required:
1(a). Compute variable cost per unit. Enter
your answer to the nearest cent.
$per unit
1(b). Compute contribution margin per...

Polk Company developed the following information for its
product:
Per unit
Sales price $90
Variable cost 63
Contribution margin $27
Total fixed costs $1,080,000
Instructions
Answer the following independent questions and show computations
using the contribution margin technique to support your
answers.
1. How many units must be sold to break even?
2. What is the total sales that must be generated for the company
to earn a profit of $60,000?
3. If the company is presently selling 45,000 units,...

Rush Company developed the following information for its
product: Per Unit Sales price $90 Variable cost $54 Contribution
margin $36 Total fixed costs $1,080,000 Instructions: Answer the
following independent questions and show computations using the
contribution margin technique to support your answers. (Partial
credit will be awarded if you show your work.)
How many units must be sold to break even?
What is the total sales that must be generated for the company
to earn a profit of $60,000?
If...

Babcock, Inc. generated the following information for its
product:
Per Unit
Sales
price
$90
Variable
cost
54
Contribution
margin
$36
Total fixed
costs
$1,080,000
Answer the following independent questions and show computations
to support your answers.
1. How many units must be
sold to break even?
2. What is the total sales
that must be generated for the company to earn a profit of
$60,000?
3. If the company is
selling 45,000 units in the...

Break-Even Units, Contribution Margin Ratio, Multiple-Product
Breakeven, Margin of Safety, Degree of Operating Leverage
Jellico Inc.'s projected operating income (based on sales of
450,000 units) for the coming year is as follows:
Total
Sales
$11,700,000
Total variable cost
8,190,000
Contribution margin
$3,510,000
Total fixed cost
2,254,200
Operating income
$1,255,800
Required:
1(a). Compute variable cost per unit. Round
your answer to the nearest cent.
$per unit
1(b). Compute contribution margin per unit.
Round your answer to the nearest cent.
$per unit...

Break-Even Units, Contribution Margin Ratio, Multiple-Product
Breakeven, Margin of Safety, Degree of Operating Leverage
Jellico Inc.'s projected operating income (based on sales of
450,000 units) for the coming year is as follows:
Total
Sales
$ 11,700,000
Total variable cost
6,669,000
Contribution margin
$ 5,031,000
Total fixed cost
2,871,024
Operating income
$ 2,159,976
Required:
1(a). Compute variable cost per unit. Enter
your answer to the nearest cent.
$per unit
1(b). Compute contribution margin per unit.
Enter your answer to the nearest...

Break-Even Units, Contribution Margin Ratio, Multiple-Product
Breakeven, Margin of Safety, Degree of Operating Leverage
Jellico Inc.'s projected operating income (based on sales of
450,000 units) for the coming year is as follows:
Total
Sales
$ 11,700,000
Total variable cost
7,371,000
Contribution margin
$ 4,329,000
Total fixed cost
2,705,144
Operating income
$ 1,623,856
1(a). Compute variable cost per unit. Enter
your answer to the nearest cent.
$per unit
1(b). Compute contribution margin per unit.
Enter your answer to the nearest cent....

1) Bears Company sells a product for $15 per unit. The
variable cost is $10 per unit and fixed costs are $1,750,000.
Determine:
The Break-Even point in sales units
The Break-Even point if selling price were increased to
$655 per unit
2) Bear Company sells a product for $15 per unit. The
Variable cost is $10 per unit and fixed costs are $1,750,000.
Determine:
The Break-Even Point in sales units
The Sales units required for the company to achieve a...

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