Question

A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $510...

A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $510 and has per-unit variable costs of $204 associated with its production. The company has fixed expenses of $30,000 per month. In May, the company sold 240 of the Bomber model bikes.

A. Calculate the contribution margin per unit for the Bomber.

Contribution margin $ per unit

B. Calculate the contribution margin ratio of the Bomber.

Contribution margin ratio  %

C. Prepare a contribution margin income statement for the month of May. Use a minus sign for a net loss if present.

Income Statement
Sales $
Variable Costs
Contribution Margin $
Fixed Costs
Net Income (Loss) $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $600...
A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $600 and has per-unit variable costs of $300 associated with its production. The company has fixed expenses of $35,000 per month. In May, the company sold 240 of the Bomber model bikes. A. Calculate the contribution margin per unit for the Bomber. Contribution margin $____ per unit B. Calculate the contribution margin ratio of the Bomber. Contribution margin ratio  %___ C. Prepare a contribution margin income...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes   Sales $ 920,000 $ 262,000 $ 402,000   $ 256,000     Variable manufacturing and selling expenses 467,000 114,000 199,000   154,000     Contribution margin 453,000 148,000 203,000 102,000     Fixed expenses:     Advertising, traceable 69,900 8,600 40,700 20,600     Depreciation of special equipment 43,600 20,400 7,800 15,400       Salaries of product-line managers 115,000...
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $320...
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $320 and has a unit contribution margin of $115; the Adult model sells for $870 and has a unit contribution margin of $460; and the Recreational model sells for $1,020 and has a unit contribution margin of $510. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,520,000, calculate the firm's break-even...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 921,000 $ 264,000 $ 405,000 $ 252,000 Variable manufacturing and selling expenses 465,000 117,000 193,000 155,000 Contribution margin 456,000 147,000 212,000 97,000 Fixed expenses: Advertising, traceable 69,700 8,600 40,700 20,400 Depreciation of special equipment 43,700 20,500 7,300 15,900 Salaries of product-line managers 115,300...
King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at...
King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at last year's volume level of 1,950 bicycles per month are shown in the following table: Variable manufacturing per unit $247.00 Total fixed manufacturing $204,750 Variable nonmanufacturing per unit $69.00 Total fixed nonmanufacturing $288,600 KCSB expects to produce and sell 2,250 bicycles per month in the coming year. The bicycles sell for $610 each. KCSB receives a proposal from an outside contractor who, for $150...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes   Sales $ 924,000 $ 267,000 $ 401,000   $ 256,000     Variable manufacturing and selling expenses 468,000 118,000 199,000   151,000     Contribution margin 456,000 149,000 202,000 105,000     Fixed expenses:     Advertising, traceable 69,900 8,900 40,400 20,600     Depreciation of special equipment 43,100 20,400 7,500 15,200       Salaries of product-line managers 114,800...
Blanchard Company manufactures a single product that sells for $110 per unit and whose total variable...
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...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,600 units, and monthly production costs for the production of 1,200 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses.   Production Costs Total Cost Direct materials $ 2,700 Direct labor 7,300 Utilities ($120 fixed) 630 Supervisor’s salary 2,800 Maintenance ($280 fixed) 480 Depreciation 750 Suppose it sells...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–2,300 units, and monthly production costs for the production of 1,900 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 3,100 Direct labor 7,500 Utilities ($130 fixed) 590 Supervisor’s salary 2,800 Maintenance ($330 fixed) 480 Depreciation 700 Suppose it sells...
King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at...
King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at last year's volume level of 1,800 bicycles per month are shown in the following table: Variable manufacturing per unit $246.00 Total fixed manufacturing $216,000 Variable nonmanufacturing per unit $58.00 Total fixed nonmanufacturing $266,400 KCSB expects to produce and sell 2,150 bicycles per month in the coming year. The bicycles sell for $620 each. KCSB receives a proposal from an outside contractor who, for $165...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT