Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 20, Problem 3QC
If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the contribution margin per unit and contribution margin ratio?
- a. $45 per passenger; 60%
- b. $30 per passenger; 60%
- c. $30 per passenger; 40%
- d. $45 per passenger; 40%
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the contribution margin per unit and contribution margin ratio?
a. $45 per passenger; 60%
b. $30 per passenger; 60%
c. $30 per passenger; 40%
d. $45 per passenger; 40%
If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the contribution margin per unit and contribution margin ratio?
$45 per passenger; 60%
$30 per passenger; 60%
$30 per passenger; 40%
$45 per passenger; 40%
If Cape Cod Railway’s costs total $50,000 per month, the variable passengers is $10 , and tickets sell for $50 , what is the contribution margin per unit and contribution margin ratio?
A. $40 per passenger; 20%B. $10 per passenger; 80%
C. $10 per passenger; 20%
D. $40 per passenger; 80%
Chapter 20 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 20 - Following is a list of costs for a furniture...Ch. 20 - Following is a list of costs for a furniture...Ch. 20 - Prob. 3TICh. 20 - Following is a list of costs for a furniture...Ch. 20 - Following is a list of costs for a furniture...Ch. 20 - Prob. 6TICh. 20 - Prob. 7TICh. 20 - Prob. 8TICh. 20 - Prob. 9TICh. 20 - Prob. 10TI
Ch. 20 - Prob. 11TICh. 20 - Prob. 12TICh. 20 - Prob. 13TICh. 20 - Prob. 14TICh. 20 - Prob. 15TICh. 20 - Prob. 16TICh. 20 - Prob. 17TICh. 20 - Prob. 18TICh. 20 - A furniture manufacturer specializes in wood...Ch. 20 - For Franks Funky Sounds, straight-line...Ch. 20 - Assume Intervale Railway is considering hiring a...Ch. 20 - If Intervale Railways fixed costs total 90,000 per...Ch. 20 - If Intervale Railways fixed costs total 90,000 per...Ch. 20 - If Intervale Railways fixed costs total 90,000 per...Ch. 20 - On a CVP graph, the total cost line intersects the...Ch. 20 - If a company increases its sales price per unit...Ch. 20 - If a company increases its fixed costs for Product...Ch. 20 - Prob. 9QCCh. 20 - Rocky Mountain Waterpark sells half of its tickets...Ch. 20 - What is a variable cost? Give an example.Ch. 20 - What is a fixed cost? Give an example.Ch. 20 - What is a mixed cost? Give an example.Ch. 20 - What is the purpose of using the high-low method?Ch. 20 - Describe the three steps of the high-low method.Ch. 20 - Prob. 6RQCh. 20 - Prob. 7RQCh. 20 - Prob. 8RQCh. 20 - Prob. 9RQCh. 20 - What are the three ways contribution margin can be...Ch. 20 - Prob. 11RQCh. 20 - What is cost-volume-profit analysis?Ch. 20 - What are the CVP assumptions?Ch. 20 - What is the breakeven point?Ch. 20 - Prob. 15RQCh. 20 - Prob. 16RQCh. 20 - Prob. 17RQCh. 20 - Why is the calculation to determine the target...Ch. 20 - Prob. 19RQCh. 20 - What is sensitivity analysis? How do managers use...Ch. 20 - What effect does an increase in sales price have...Ch. 20 - Prob. 22RQCh. 20 - What is the margin of safety? What are the three...Ch. 20 - What is a companys cost structure? How can cost...Ch. 20 - What is operating leverage? What does it mean if a...Ch. 20 - Prob. 26RQCh. 20 - Philadelphia Acoustics builds innovative speakers...Ch. 20 - Hollys Day Care has been in operation for several...Ch. 20 - Mark owns a machine shop. In reviewing the shops...Ch. 20 - Glenn Company sells a product for 80 per unit....Ch. 20 - Gabelman Company sells a product for 95 per unit....Ch. 20 - Mackler, Inc. sells a product with a contribution...Ch. 20 - Ocean Company sells a product with a contribution...Ch. 20 - Compute the missing amounts for the following...Ch. 20 - Compute the missing amounts for the following...Ch. 20 - Use the following information to complete Short...Ch. 20 - Compute Funday Parks contribution margin ratio....Ch. 20 - Using the Funday Park information presented, do...Ch. 20 - Prob. 13SECh. 20 - Refer to the original information (ignoring the...Ch. 20 - Refer to the original information (ignoring the...Ch. 20 - Prob. 16SECh. 20 - For 2019, Wild Waters expects a sales mix of four...Ch. 20 - Match the following terms with the correct...Ch. 20 - Identify each cost as variable (V), fixed (F), or...Ch. 20 - For each total fixed cost listed below, determine...Ch. 20 - Prob. 21ECh. 20 - Prob. 22ECh. 20 - The manager of Trusty Car Inspection reviewed the...Ch. 20 - For its top managers, Worldwide Travel formats its...Ch. 20 - Complete the table below for contribution margin...Ch. 20 - Prob. 26ECh. 20 - Prob. 27ECh. 20 - Owner Shan Mu is considering franchising her...Ch. 20 - Prob. 29ECh. 20 - Prob. 30ECh. 20 - Determine how each change effects the elements of...Ch. 20 - Mi Tierra Driving School charges 680 per student...Ch. 20 - Prob. 33ECh. 20 - Robbies Repair Shop has a monthly target profit of...Ch. 20 - Prob. 35ECh. 20 - Prob. 36ECh. 20 - The budgets of four companies yield the following...Ch. 20 - England Productions performs London shows. The...Ch. 20 - Crandall Company sells flags with team logos....Ch. 20 - Prob. 40APCh. 20 - The contribution margin income statement of Sugar...Ch. 20 - The budgets of four companies yield the following...Ch. 20 - Famous Productions performs London shows. The...Ch. 20 - White Company sells flags with team logos. White...Ch. 20 - Diversified Investor Group is opening an office in...Ch. 20 - The contribution margin income statement of...Ch. 20 - Prob. 48PCh. 20 - The Jacksonville Shirt Company makes two types of...Ch. 20 - Prob. 1TIATCCh. 20 - Steve and Linda Hom live in Bartlesville,...Ch. 20 - Prob. 1EI
Additional Business Textbook Solutions
Find more solutions based on key concepts
Adjusting Journal Entries; Adjusted Trial Balance. Magic Cleaning Services (MCS) has a fiscal year-end of Decem...
Intermediate Accounting (2nd Edition)
Calculate profit margin on sales ratio. (LO 5). Suppose a firm had sales of $200,000 and net income of $7,000 f...
Financial Accounting
Assume you are a CFO of a company that is attempting to race additional capital to finance an expansion of its ...
Financial Accounting, Student Value Edition (4th Edition)
Plantwide and Departmental Overhead Allocation; Activity-Based Costing; Segmented Income Statements Koontz Comp...
Introduction To Managerial Accounting
Bank loan; accrued interest LO132 On October 1, Eder Fabrication borrowed 60 million and issued a nine-month, ...
INTERMEDIATE ACCOUNTING
Dave Nelson recently retired at age 48, courtesy of the numerous stock options he had been granted while presid...
Managerial Accounting: Creating Value in a Dynamic Business Environment
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000arrow_forwardSuppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced?arrow_forwardA company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110arrow_forward
- If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the breakeven point in units? a. 1,200 passengers b. 2,000 passengers c. 225,000 passengers d. 3,000 passengersarrow_forwardIf sales are $30,000, fixed costs are $10,000, and variable costs are $7,000 what is the contribution margin ratio? O 0.594 O 0.767 O 0.612 0.659arrow_forwardThe contribution margin ratio is 70%. If total fixed costs are $23,000, then what is the total cost ($) of producing and .selling 66,550 units? The selling price is $3 per unit 139,755 .a O 176,650 b O 59,895 .c O None of the given answers .d O 116,755 .e Oarrow_forward
- Given the following information, find dollar sales: a. Fixed costs, $60,000; profit, $18,000; sales price per unit, $8.00; variable cost per unit, $5.00 b. Variable rate, .45; profit, $21,578.10; fixed costs, $58,382 c. Sales price per unit, $16.60; profit, $21,220; contribution margin, $9.29; fixed costs, $126,000arrow_forwardPrearcan CVBA's income statement shows the following: Sales Revenue: $9,121,000 Variable Costs: 4,797,000 Fixed Costs: 3,946,000 If unit sales were 5,000, the contribution margin per unit to the nearest cent is : $arrow_forwardABC Company provides the following information about its product: Targeted operating income $50,000 Selling price per unit 7.00 Variable cost per unit 1.50 Total fixed costs 125,000 What is the contribution margin ratio?arrow_forward
- If the selling price per unit is $10, the unit contribution margin is $5, and total fixed expenses are $17,500, what are the breakeven sales in units?arrow_forwardCoastal Carolina Company has a product with a unit selling price of $200, the unit variable cost is $110, and the total monthly fixed costs are $300,000. What is Coastal Carolina's contribution margin ratio? OA) 182% B) 55% C) 45% OD) 150%arrow_forwardMazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? Finisk a. 47.5% O b. 52.5% O c. 70% ype here to search & 7. V 3 5. 8. W. R Y. G H. V M alt ctri alt 立arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Pricing Decisions; Author: Rutgers Accounting Web;https://www.youtube.com/watch?v=rQHbIVEAOvM;License: Standard Youtube License