Assume that more than one product is being sold in each of the four following case situations: Case #1 Case #2 Case #3 Case #4 Sales $ 443,000 $ 203,000 $ 292,000 Variable expenses 140,070 84,680 Fixed expenses 52,000 470,000 Net operating income (loss) $ 82,350 2$ 10,930 2$ 90,000 $ (18,680) Contribution margin ratio (percent) 45 % % 80 % %

Assume that more than one product is being sold in each of the four following case situations: Case #1 Case #2 Case #3 Case #4 Sales $ 443,000 $ 203,000 $ 292,000 Variable expenses 140,070 84,680 Fixed expenses 52,000 470,000 Net operating income (loss) $ 82,350 2$ 10,930 2$ 90,000 $ (18,680) Contribution margin ratio (percent) 45 % % 80 % %

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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(e) Product Blue Product Red Selling $12.00 $24.00Variable cost $4.00 $8.00Contribution margin $8.00 $16.00Fixed costs apportioned $200,000 $400,00Budgeted Sales Units 140,000 60,000 Calculate the breakeven points, for each product and the company as a whole and comment on your findings f)Discuss the merits and demerits of the cost volume profit analysis (CVP)
Marked out of O b. $1.66 1.00 O c. $3.33 P Flag O d. $2.66 question O e. $4.16 Question 20 If sales are $24,000, variable costs are $8,000, and fixed costs are $3,000, the contribution margin ratio is: (rounded to the nearest number) Not yet O a. 67% answered O b. 13% Marked out of 1.00 O c. 33% P Flag O d. 54% question O e. None of the given answers 0 al - eT:4 TOSHIBA
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A company has assessed the profitability of its three products as shown here: Product A Product B Product C Total Sales (units) 3,000 5,000 2,000 10,000 £ £ Price 15.00 10.00 5.00 Variable costs 6.00 4.00 3.00 Divisible fixed costs 2.00 1.00 0.50 Non-divisible fixed costs 2.00 2.00 2.00 Profit/(Loss) 5.00 3.00 (0.50) As a result of this, it has been suggested that Product C should be dropped. All other things being equal what would be the financial impact of dropping Product C? A B Profit would increase by £1,000. Profit would increase by £2,000. Profit would fall by £3,000. C D Profit would fall by £4,000. £
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content/qualsims/accounting/cost_volume_profit/v2/player/#/891e73d6eefafa67438268e177eaa497_qualsimsaccountingcost_volume_profitmiller_nobles_mattis 75 Tumblers Sora per month Sales Revenue Less: Variable Expenses Contribution Margin Less: Fixed Expenses Operating Income Total Per Unit $ 2,250 $ 30 1,350 18 $ 900 $ 12 250 $ 650 In order to determine how much contribution margin is earned for each $1 of sales, what is the contribution margin ratio on your tumbler sales? Round to the nearest whole number. Select an option from the choices below and click Submit. ○ 29% ○ 40% ○ 250% Submit
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(e) Product Blue Product Red £ £Selling £12.00 £24.00Variable cost £ 4.00 £ 8.00Contribution margin £ 8.00 £16.00Fixed costs apportioned £200,000 £400,000Budgeted Sales Units 140,000 60,000Required:Calculate the breakeven points, for each product and the company as a wholeand comment on your findings