A restaurant has an average check of $12.75, with an average variable cost of $4.85. Fixed costs are $142,200. Calculate the following: a. What is the unit contribution margin? b. What are breakeven units? c. What is the variable cost percentage? d. What is the contribution as a percentage? e. What is breakeven sales revenue?
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- 4. What if the average price per unit increased to $25.50? Recalculate the following: a Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. C. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.Assume that the linear cost and revenue models apply. An item costs $13 to make. If fixed costs are $1600 and profits are $5700 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.)R(x) =Suppose a ceiling fan manufacturer has the total cost function C(x) = 35x + 1200 and the total revenue function R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) = (b) What is the profit on 20 units? P(20) = Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue. The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fans
- A product has a sales price of $90 and a per-unit contribution margin of $30. What is the contribution margin ratio?1. Calculate the contribution margin rate, the sales dollar breakeven point, and the unit sales breakeven point. 2. Use the following information to perform your calculations. a. Net Sales: $50,000.00 b. Contribution Margin: $20,000.00 c. Total Fixed Costs: $15,500.00 d. Unit Sales Price: $25.00 3. Provide the formula and write out the equation that you use for each calculation. a. Contribution Margin Rate: b. Sales Dollar Breakeven Point: C. Unit Sales Breakeven Point:A business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P 1,400,000. Calculate the following: What is the unit contribution margin? (Answer the figures only; two decimal places)
- 1. Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65. PLEASE NOTE: The per-unit Contribution Margin will be rounded in whole dollars and shown with "$" and commas as needed (i.e. $12,345). A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio? PLEASE NOTE: The Contribution Margin Ratio will be shown as a percentage, shown with "%" and rounded to three decimal places (i.e. 12.3%).A product has a sales price of $140 and a per-unit contribution margin of $14. What is the contribution margin ratio? Contribution margin ratioChapter 25 eBook 4 Show Me How Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70,800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit egual to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 v b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 х%
- 2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to the nearest whole percent.) 6. Determine the operating leverage. Round to one decimal place.A product has a sales price of $230 and a per-unit contribution margin of $115. What is the contribution margin ratio? Contribution margin ratio fill in the blank 1%A business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P 1,400,000. Calculate the following: What is the contribution margin percentage? (Answer the figures only; two decimal places)