Question

32.Marissa, Inc. has a contribution margin of 40% and fixed costs of $200,000. What is the break-even point?

.

Last month Carol Company had a $30,000 profit on sales of $250,000. Fixed costs are $60,000 a month. What sales revenue is needed for Calico to break even?

Answer #1

If the variable cost % is .60 , find the contribution margin
%
Fixed costs= 400 , contribution margin % is .40.
Find sales dollars needed to break even.
Fixed costs= 500 , contribution margin per unit =10. Find sales
in units to earn a net income of 100.
Selling price per unit= 80 ; variable costs per unit= 60; fixed
costs= 200.
Find the contrib.
margin %.

At the break-even point
sales equal total variable costs
contribution margin equals
total variable costs contribution margin equals total fixed
costs
sales equal total fixed costs
2. The amount by which actual or expected sales exceeds
break-even sales is referred to as
contribution margin
unanticipated profit
margin of safety
target net income

Last month Watchworks Company had a $60,000 loss on sales of
$300,000. Fixed costs are $120,000 a month. Answer the following
questions:
a. What was the contribution margin percentage?
b. What monthly sales volume (in dollars) would be needed to
break-even?
c. What sales volume (in dollars) would be needed to earn
$150,000?

Bosco Company sells boxes of cookies and has total fixed costs
of $200,000 per month. Variable costs are $8 per box, selling price
is $10. The company desires to make a profit of $100,000 per month.
a. What is number of boxes that most be sold to break even each
month? b. What is the contribution margin ratio? c. What is the $
amount of monthly sales needed in order to make the desired monthly
profit

. Assume that the CDE Company has yearly Fixed costs of $30,000
and its Variable costs are $30,000, which are 60% of its Sales.
Calculate:
[Use ONLY formula for your calculations. Do NOT use
algebra]
Question:
Its profit or loss when its total sales are $110,000.
b. The sales level (dollars) required
to break-even.
c. The sales needed to make a profit of
$35,000.
2. ABC Company manufactures and distributes Product A. An
extract from the 20X5 statement...

Contribution Margin Ratio, Break-Even Sales Revenue, Sales
Revenue for Target Profit
Schylar Pharmaceuticals, Inc., plans to sell 140,000 units of
antibiotic at an average price of $17 each in the coming year.
Total variable costs equal $761,600. Total fixed costs equal
$7,500,000.
Required:
1. What is the contribution margin per unit?
Round your answer to the nearest cent.
$
What is the contribution margin ratio? Round your answer to two
decimal places. (Express as a decimal-based answer rather than a...

Mastery
Problem: CVP and the Contribution Margin Income
Statement
For planning and
control purposes, managers have a powerful tool known as
cost-volume-profit (CVP) analysis. CVP shows how revenues,
expenses, and profits behave as volume changes. In CVP analysis,
costs are classified according to behavior: variable or fixed.
Costs are classified by behavior on the income statement in CVP
analysis to arrive at operating income. This format is known as the
contribution margin income statement. Complete the following table
to illustrate...

CVP ANALYSIS
If the variable cost % is .60 , find the contribution
margin %
Fixed costs= 400 , contribution margin % is .40. Find
sales dollars needed to break even.
Fixed costs= 500 , contribution margin per unit =10.
Find sales in units to earn a net income of 100.
Selling price per unit= 80 ; variable costs per unit=
60; fixed costs= 200.
Find the contrib. margin
%.
Actual sales=600 ; break even sales =400 ; contribution
margin=...

part 1
Candle Co. has sales of $200,000 this month, contribution
margin of $100,000, monthly fixed cost of $80,000 and profit of
$20,000. What is the firm’s current breakeven volume in dollars?
(rounded)
Select one:
a. All listed choices are incorrect.
b. $160,000.
c. $180,000.
d. $140,000.
part 2
Candle Co. has sales of $200,000 this month, contribution
margin of $100,000, monthly fixed cost of $80,000 and profit of
$20,000. What is the firm’s current breakeven ratio to sales?
(rounded)...

The Kringel company provides the following information: Sales
(200,000 units) $500,000 Manufacturing costs: Variable 170,000
Fixed 30,000 Selling and administrative costs: Variable 80,000
Fixed 20,000
Required:
a. What is the break-even point in units for Kringel?
b. What is the variable cost per unit for Kringel?
c. What is the contribution margin per unit for Kringel?
d. Should a multiple product firm focus on individual product
break-even point? Why or why not? Discuss with logical
arguments.

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