Q. No. 1
Bloom Company management predicts that it will incur fixed costs of $250,000 and earn pretax income of $350,000 in the next period. Its expected contribution margin ratio is 60%.
| 1. | Compute the amount of total dollar sales. |
2. Compute the amount of total variable costs.
Q. No. 2
|
A jeans maker is designing a new line of jeans called the Slims. The jeans will sell for $370 per pair and cost $262.70 per pair in variable costs to make. (Round your answers to 2 decimal places.) |
Q. No. 3
Blanchard Company manufactures a single product that sells for $250 per unit and whose total variable costs are $200 per unit. The company s annual fixed costs are $770,000.
| (1) |
Prepare a contribution margin income statement for Blanchard Company at the break-even point.Assume the company s fixed costs increase by $139,000. What amount of sales (in dollars) is needed to break even? Q. No. 4
|
Q. No. 5
Nombre Company management predicts $410,000 of variable costs, $990,000 of fixed costs, and a pretax income of $259,500 in the next period. Management also predicts that the contribution margin per unit will be $51.