Requirement 2. Which sales representative has the highest contribution margin ratio? Explain why ________ is the sales representative with the highest contribution margin ratio because this representative _________________

Requirement 2. Which sales representative has the highest contribution margin ratio? Explain why is the sales representative with the highest contribution margin ratio because this representative _________

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A CVP graph such as the one shown below is a useful technique for showing relationships among an organization's costs, volume, and profits. 8. Required: Identify the numbered components in the CVP graph. Answer Number 1 Number 2 Number 3 Number 4 Number 5 Number 6 Number 7 Number 8 Number 9 State the effect of each of the following actions on the break-even point. Answer |The unit selling price is increased from $ 18 to $20. |Unit variable expenses are decreased from $12 to $10. |Fixed expenses are increased by $3,000 per period Two thousand more units are sold during the period than were budgeted Due to paying salespersons a commission rather than a flat salary, fixed expenses are reduced by $8,000 per period and unit variable expenses are increased by $3 Due to an increase in the cost of materials, both unit variable expenses and the selling price are increased by $2. Advertising costs are increased by $10,000 per period, resulting in a 10% increase in the number of units sold. Due…
What is the correct choice? Datamatix Company has gathered the following data: Unit Sales Price Unit Variable Costs Unit Sales Product 1 $18.00 $10.00 24,500 Product 2 27.00 17.00 17,500 Product 3 35.00 28.00 28,000 Fixed costs are $233,280. The weighted-average breakeven point is a. 34,500 units. b. 28,800 units. c. 25,200 units. d. 29,900 units.
XYZ Company's product has a contribution margin per unit of $12 and a variable cost ratio of 90%. What is the selling price of the product? Select one: Oa. $120. Ob.$28.125. Oc.$37.5. O d. $60. Oe. $22.5. Next page le
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the following four case situations: Unit sold Sales Variable expenses Foxed expenses Operating income (loss) Contribution margin per unit $ Case #1 15,000 180,000 $ 100,000 120,000 50,000 $ $ Case #2 Case #1 Case #3 10,000 Case #2 70,000 $ 32,000 8,000 $ 12,000 $ 10 $ 13 Case #4 b. Assume that more than one product is being sold in each of the following four case situations: (Enter "Contribution margin ratio" in percent. Round your final answers to the nearest whole dollar amount.) Case #3 6,000 300,000 100,000 (10,000) Case #4
The Frame Shoppe reported the following information:Contribution margin per unit TL 90Contribution margin TL 3,500Operating income TL 1,500 Compute the degree of operating leverage at the Frame Shoppe.
Johnson Company manufactures and sells a single product. The company's sales and expenses for last year follow: E(Click the icon to view the information.) X Data Table Read the requirements Requirement 1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: Total Per Unit % a. What is the total contribution margin? $ 81,250 $ Sales 25 ? The total contribution margin is $ ? Variable expenses Contribution.margin. 13,000 Fixed expenses $ 19,500 Operating income Done Print
Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio: (Click the icon to view the table.) Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.) A B C 1,290 units 14,390 units 3,600 units 1,400 4,400 $ 1,250 700 880 625 Number of units Sale price per unit Variable costs per unit Calculate: 700 Contribution margin per unit Total contribution margin 903,000 Contribution margin ratio 50% 3520 50,652,800 80% %
On the cost-volume-profit graph, the area between the total cost line and the sales line after the break-even point represents: O a. The contribution margin per unit O b. The profit area O c. The variable cost amount O d. The fixed cost amount O e. The loss area US PAGE NEXT PAGE nere to search O W 19:09 A O D a d) ENG 07-04-2021 hp prt sc delete home end & 9 + backspace num lock R T P home D F G H K enter レ pause ↑ shift 11 end alt ctrl
A tile manufacturer has supplied the following data: 1. What is the company's unit contribution margin? $0.86B. $2.35C. $4.10D. $1.75 2. The company's contribution margin ratio is closest to: 42.7%B. 57.3%C. 45.8%D. 21.0% 3. If the company increases its unit sales volume by 3% without increasing its fixed expenses, then total net operating income should be closest to: $459,380B. $453,667C. $13,380D. $482,660
XYZ Company's product has a contribution margin per unit of $12 and a variable cost ratio of 80%. What is the selling price of the product? Select one: O a. $37.5. O b. $28.125. O c. $22.5. O d. $120. O e. $60.
Wimberley Ltd provides the following data regarding its four product lines: A B C D Product Selling price ($) 10 Variable costs per unit ($) Sales mix 35 55 91 3 16 29 65 60 20 15 5 Required Calculate, to two decimal places, the weighted average contribution margin per unit (WACMU).
Let's try another version of Example #6 in the example packet. Suppose Revenues are $535,311 Cost of Goods sold, representing the cost of products sold, is made up of $68,089 of fixed costs and $89,938 of variable costs Period expenses (sales, marketing and administrative expenses) are made up of $30000 of variable costs and $50000 in fixed costs. Prepare a contribution margin income statement. What is Total Contribution Margin that would appear on the statement?