Compute the contribution margin for the current year

Assignment Help Accounting Basics
Reference no: EM132028142

Question - Marotta Corporation has collected the following information after its first year of sales. Net sales were $1,800,000 on 100,000 units; selling expenses $243,000 (40% variable and 60% fixed); direct materials $512,800; direct labor $338,190; administrative expenses $282,600 (20% variable and 80% fixed); manufacturing overhead $364,700 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.

Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year.

Reference no: EM132028142

Questions Cloud

Calculate npv that generates a perpetual cash flow forever : How do you calculate NPV that generates a perpetual cash flow forever?
How the put and call premium imply the forward price : Show how the put and call premium imply the forward price. What is the forward price? Explain your answer. (hint: use the put-call parity relationship)
Various sectors of the financial markets : As we know the financial market is made up of several sectors such as the banks, investment fund, real estate etc, but why would I be incorrect
How are the goals and needs of residents different : Understanding how the various parts of a community work together is vital to the success of any community-based initiative.
Compute the contribution margin for the current year : Marotta Corporation has collected the following information after its first year of sales. Compute the contribution margin for the current year
View the various sectors of the financial markets : As we know the financial market is made up of several sectors but why it would be incorrect to view the various sectors of the financial markets
What role do you think you memory plays in understanding : What role do you think you memory plays in understanding who you are? Would you want to remember everything or nothing? What would be worse?
What is the present worth of each option : Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick.
Calculate his annualized time weighted return : a) Calculate his annualized Time Weighted Return (TWR). b) Calculate his annualized Money Weighted Return (MWR).

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd