Using the high low method, compute the variable element of manufacturing overhead cost per machine hour.
7b.
Using the high low method, compute the fixed element of Olsen’s monthly overhead cost.
7c.
Olsen’s projected August operations will require approximately 170,000 machine hours. Using the high low method, compute total manufacturing overhead estimated for August
8.
A company with an operating income of $88,000 and a contribution margin ratio of 70% has a margin of safety of:
9.
the following information is available:
| Sales |
$ 250,000 |
| Break even sales |
$ 160,000 |
| Contribution margin ratio |
44% |
What is the operating income?
10.
A company with monthly revenue of $142,000, variable costs of $55,500, and fixed costs of $42,200 has a contribution margin of:
11.
A company with monthly fixed costs of $320,000 expects to earn monthly operating income of $58,000 by selling 14,000 units per month. What is the company’s expected unit contribution margin?
12.
| If monthly fixed costs are $30,000 and the contribution margin ratio is 30%, the monthly sales volume required to break even is:
13.
|
Product X sells for $34 per unit and has related variable costs of $20 per unit. The fixed costs of producing product X are $76,000 per month. How many units of product X must be sold each month to earn a monthly operating income of $64,000?
14.
The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:
| Maximum capacity with present facilities |
12,000 units |
| Total fixed cost (per period) |
$ 1,047,800 |
| Variable cost per unit |
$ 126.00 |
| Sales price per unit |
$ 188.00
|
14a.
The contribution margin per unit for product no. CK74 is
14b.
The number of units of CK74 that Ruby must sell to break even is (rounded, if necessary
15.
| Accents Associates sells only one product, with a current selling price of $30 per unit. Variable costs are 30% of this selling price, and fixed costs are $28,000 per month. Management has decided to reduce the selling price to $25 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. |
15a. At the current selling price of $30 per unit, the contribution margin ratio is: 15b.
| At the current selling price of $30 per unit, the dollar volume of sales per month necessary for Accents to break even is:
15c.
| At the current selling price of $30 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $8,000? |
|
|
|
|
|
