Sh16 Crane's Bike Shop has the following income statement.Sales ($150 per unit)Less: Cost of Goods sold ($96 per unit)Gross marginLess: Operating costsSalariesAdvertisingShipping ($6 per unit)Operating incomeContribution margin per unit $$24.96012,4806,240eTextbook and Media$156,00099,84056,16043,680Calculate the contribution margin per unit. (Round answers to O decimal places, e.g. 25.)$12,480 Calculate the contribution margin ratio. (Round answers to 0 decimal places, e.g. 25.)Contribution margin ratioeTextbook and MediaCalculate the breakeven point in units and in sales dollars. (Use your answer of breakeven units to calculate the Edollars. Round Breakeven units and point in dollar to O decimal places, e.g. 25,000.)Breakeven point in unitsBreakeven point in sales dollarsMargin of safety in units%$Margin of safety in dollarsCalculate the margin of safety in units and in dollars. (Use your answer of margin of safety in units to calculate the margdollars. Round Margin of safety units and point in dollar to 0 decimal places, e.g. 25,000.)unitsunits

Answer:- Break-even point:- The break even point is reached when overall costs and total revenues…

Answered: Crane's Bike Shop has the following…

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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Crane Manufacturing Ltd. has provided you with the following CVP income statement. Sales (1,460 units) Variable costs: Cost of goods sold Selling expenses Administrative expenses Contribution margin Fixed costs: Cost of goods sold Selling expenses Administrative expenses Operating income $1,022,000 454,060 81,760 67,160 419, 20 153,300 52,560 33,580 $179,580 a. Calculate the contribution margin ratio. b. Calculate the break-even point in sales dollars and number of units.
Bob's Bike Shop has the following income statement. Sales ($150 per unit) Less Cost of Goods sold ($96 per unit) Gross margin Less Operating costs Salaries Advertising Shipping ($6 per unit) Operating income Required: a. b. d. $150,000 96,000 $24,000 12,000 54,000 6,000 42,000 $ 12,000 Calculate the contribution margin per unit. Calculate the contribution margin ratio. Calculate the breakeven point in units. In sales dollars. Calculate the margin of safety in units. In dollars.
Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $4,800 $3,200 Variable cost of goods sold (3,020) (2,140) Manufacturing margin $1,780 $1,060 Variable selling expenses (964) (548) Contribution margin $816 $512 Fixed expenses (380) (200) Operating income $436 $312 In addition, the following sales unit volume information for the period is as follows: Conquistador 2,800 Hurricane 2,000 Sales unit volume a. Prepare a contribution margin by product report. Compute the contribution margin ratjo for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product
Use the information below to answer the following question(s). Franscioso Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.25 Direct manufacturing labour $1.15 Manufacturing overhead $0.25 Selling costs $1.85 Annual fixed costs $110,000 The Franscioso Company contribution margin ratio is O A. 0.702:1. O B. 1.425:1. O C. 0.298:1. O D. 1.102:1. O E. 0.637:1.
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.11 $ 543.37 $ 519.00 Variable cost per unit $ 252.05 $ 420.86 $ 397.71 Time on the constraint (minutes) 4.00 8.00 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.) A. GK LG QX B. Maximun Amount
The following data are for Greasy Gary's Grubhouse: West East Sales volume (units): Hub Cap 14,000 9,000 Gas Can 6,500 18,000 Sales price per unit: Hub Cap $36 $28 Gas Can $22 $31 The variable cost of goods sold per unit Hub Cap $19 $17 Gas Can $9 $14 Variable selling and administrative per unit Hub Cap $ 5 $ 4 Gas Can $ 3 $2 (a) Complete a contribution margin by sales territory and by-product (b) Analyze the statements and comment on what can help the company in terms of profitability, product placement, and territory. List 3 pros and cons to each product and territory.
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 119.51 $ 226.07 $ 228.96 Variable cost per unit $ 89.87 $ 176.86 $ 178.92 Time on the constraint (minutes) 1.90 3.70 3.60 Required: A. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. B. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?
The controller for the Lillian Corporation created an Excel worksheet that included a profit calculation. The worksheet also contained a data table created using the What-if analysis tool to analyze the sales price, volume, and profit related to the graphics card the company manufactures. The worksheets are pictured next. Profit calculation 2 Sales price per unit $50 3 Less: Variable cost per unit $20 4 Contribution margin per unit $30 5 × Volume 700 6 Total contribution margin $21,000 7 Less: Fixed expenses $12,000 8 Operating income $9,000 9 10 Monthly target profit (minimum) $9,999 Data table 2 $9,000 $45 $50 $55 $60 $65 $70 3 900 $10,500 $15,000 $19,500 $24,000 $28,500 $33,000 4 850 $9,250 $13,500 $17,750 $22,000 $26,250 $30,500 5 800 $8,000 $12,000 $16,000 $20,000 $24,000 $28,000 6 750…
The controller for the Lillian Corporation created an Excel worksheet that included a profit calculation. The worksheet also contained a data table created using the What-if analysis tool to analyze the sales price, volume, and profit related to the graphics card the company manufactures. The worksheets are pictured next. Profit calculation 2 Sales price per unit $50 3 Less: Variable cost per unit $20 4 Contribution margin per unit $30 5 × Volume 700 6 Total contribution margin $21,000 7 Less: Fixed expenses $12,000 8 Operating income $9,000 9 10 Monthly target profit (minimum) $9,999 Data table 2 $9,000 $45 $50 $55 $60 $65 $70 3 900 $10,500 $15,000 $19,500 $24,000 $28,500 $33,000 4 850 $9,250 $13,500 $17,750 $22,000 $26,250 $30,500 5 800 $8,000 $12,000 $16,000 $20,000 $24,000 $28,000 6 750…
Cullumber Company makes 2 products, sleep masks and sleep socks. Additional information follows: Sleep Socks 2,800 $34,000 10,004 Units Sales Variable costs Fixed costs Net income Profit per unit Sleep Masks Sleep Masks 4,300 $69,000 38,986 11,954 $18,060 Sleep Socks $4.20 Compute the Contribution margin per unit. (Round answers to 2 decimal places, e.g. 15.25.) 12,012 $ $11,984 $4.28 Contribution margin per unit
1 Lazy Days Inc. (LDI), sells hammocks. Revenue and cost information is given below: Sales Price 3. TL 30 Unit Variable Cost 20 Annual Fixed Operating Expenses 47,500 Required: a) Determine the sales volume in units and TL amount that would be required to attain a TL 12,500 profit. Verify your answer by preparing an income statement using the contribution margin format. b) LDI is considering the implementation of a quality improvement program. The program will require a TL 2.50 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional TL 5,000 for advertising. Assuming that the improvement program will increase sales to a level that is 1,500 units above the amount computed in requirement a, should LDI proceed with plans to improve product quality? Support your answer by preparing a budgeted income statement. c) Determine the new break-even point volume of units and sales in TL as well as the margin of safety…
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.09 $ 543.35 $ 518.00 Variable cost per unit $ 252.04 $ 420.85 $ 397.70 4.10 8.10 8.00 Time on the constraint (minutes) Required: 1. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. 2. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.)

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