equals fixed cost. C. total contribution margin equals the sum of variable cost plus fixed cost. D. sales revenue equals total variable cost. E. profit is greater than zero. 3. The unit contribution margin is calculated as the difference between: A. selling price and fixed cost per unit. B. selling price and variable cost per unit. C. selling price and product cost per unit. D. fixed cost per unit and variable cost per unit. E. fixed cost per unit and product cost per unit. 4. Which of the following
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Direct materials = $52‚000 3. The Lyons Company’s cost of goods manufactured was $120‚000 when its sales were $360‚000 and its gross margin was $220‚000. If the ending inventory of finished goods was $30‚000‚ the beginning inventory of finished goods must have been: A. $150‚000 B. $20‚000 C. $50‚000 D. $110‚000 Cost of goods sold = Sales - Gross margin Cost of goods sold = $360‚000 - $220‚000 Cost of goods sold = $140‚000 4. Last month a manufacturing company had the following
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is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 607 would be: A. $4‚107 B. $6‚319 C. $3‚432 D. $4‚863 3. Trauscht Corporation has provided the following data from its activity-based costing system: The company makes 340 units of product P23F a year‚ requiring a total of 710 machine-hours‚ 80 orders‚ and 40 inspection-hours per year. The product ’s direct materials cost is $40.05 per unit and its direct labor cost is $14.35 per unit. The product
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Contribution Margin and Break Even Analysis. Many factors come into play in determining business success. One of them is the financial factor. For a company to set financial goals it is crucial that its management know in detail the products or services they sale or provide. This is the analysis of two different scenarios at Aunt Connie ’s Cookies Simulation (University of Phoenix‚ 2011) and the financial performance of Jamestown Electric Supply Company (Heiter‚ et. al. 2008). During both analysis
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Contribution Margin and Break Even Point by ACC 202 Trident University July 22‚ 2011 Contribution Margin and Break Even Point I’m going to discuss Contribution margin and what it is and how it relates to companies and profits. Contribution margin is the amount remaining from sales revenue after variable expenses have been deducted. It is the amount available to cover fixed expenses such as lease agreements and then to provide profits for the period. Contribution margin is first
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Analysis Scattergraph High-Low Method Regression Relevant Range Scattergraph High-Low Method Example: Let total costs at 500 units of output be $150‚000 and at 3‚000 units of output be $400‚000. Calculate variable and fixed costs‚ respectively. High-Low Method Solution: High Low Change Costs: $400‚000 $150‚000 $250‚000 Units: 3‚000 500 2‚500 Calculate Variable Cost Per Unit: $250‚000/2‚500 = $100 Calculate Total Fixed Costs: $400‚000 – (3‚000 x 100) = $100‚000 High-Low Method Regression Analysis
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selling price of $40 per unit and variable expenses of $15 per unit. The company’s fixed expenses total $30‚000 per year. The company’s break-even point in terms of total dollar sales is: A) $100‚000. B) $80‚000. C) $60‚000. D) $48‚000. The answer is d. CMR = (P-V)/P = ($40 - $15)/$40 = 62.5% Px = F/ (CMR) Px = $30‚000/.625 = $48‚000 Use the following to answer questions 2-3: Weiss Corporation produces two models of wood chairs‚ Colonial and Early American. The Colonial sells for $60 per chair and the Early
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1. The following is Addison Corporation’s contribution format income statement for last month: Sales $1‚000‚000 Less: Variable Expenses $ 700‚000 Contribution Margin $ 300‚000 Less: Fixed Expenses $ 180‚000 Operating Income $ 120‚000 The company has no beginning or ending inventories. A total of 20‚000 units were produced and sold last month. What is the company’s margin of safety in dollars? $400 000 10 points
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Austria‚ so it is the same edition with Austrian’s Red Bull. For the target group of Red Bull‚ mainly they could be manual labourer‚ and also mental worker Red Bull sales around 10 dollars per liter in Woolworths. As far as its competitor‚ Mother‚ V and Monster sale 5 dollars‚ 8.66 dollars and 5 dollars per liter in Woolworths. | Year | 2012 | 2011 | 2010 | |Sales($ million ) | 2950
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Case Study: Contribution Margin and Variance Analysis By: Sachin Malhotra Student ID:xxxxxxxxx Presented To: Prof. G. Dunning Course: 04-70-256 Section 2 Date: November 28‚ 2008 Explanation of Profit Decline The decline in profits was due to a combination of various market‚ as well as‚ production factors. Firstly‚ the decreased market share was a major cause of the decline in the profits. This was quite surprising for a company that is operating in a growing market. The total market for
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