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Contribution Margin Ratio- Variable Cost Ratio- Break-Even Sales Reven.pdf

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21stcenturyjammu21

Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue 1.The controller of Ashton Company prepared the following projected income statement: Required: a. Calculate the contribution margin ratio. _________% b. Calculate the variable cost ratio. __________ % c. Calculate the break-even sales revenue for Ashton. $_______ 2. Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income Werner Company produces and sells disposable foil baking pans to retailers for $2.65 per pan. The variable cost per pan is as follows: Fixed manufacturing cost totals $235,575 per year. Administrative cost (all fixed) totals $32,124. Required: a. Compute the number of pans that must be sold for Werner to break even. fill in the blank 1 pans b. Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent. c. How many pans must be sold for Werner to earn operating income of $6,960? ______ d. How much sales revenue must Werner have to earn operating income of $6,960? $___________ Sales $88,000 Total Variable cost 62,480 Contribution margin $25,520 Total Fixed cost 12,760 Operating income $12,760 .

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Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue 1.The controller of Ashton Company prepared the following projected income statement: Required: a. Calculate the contribution margin ratio. _________% b. Calculate the variable cost ratio. __________ % c. Calculate the break-even sales revenue for Ashton. $_______ 2. Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income Werner Company produces and sells disposable foil baking pans to retailers for $2.65 per pan. The variable cost per pan is as follows: Fixed manufacturing cost totals $235,575 per year. Administrative cost (all fixed) totals $32,124. Required: a. Compute the number of pans that must be sold for Werner to break even. fill in the blank 1 pans b. Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent. c. How many pans must be sold for Werner to earn operating income of $6,960? ______ d. How much sales revenue must Werner have to earn operating income of $6,960? $___________ Sales $88,000 Total Variable cost 62,480 Contribution margin $25,520 Total Fixed cost 12,760 Operating income $12,760
Contribution Margin Ratio- Variable Cost Ratio- Break-Even Sales Reven.pdf

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