Find the contribution margin

Reference no: EM1345311

Franscioso Company sells several products. Information of revenue and cost per unit when 11,000 units are sold is as follows:

Selling price per unit $28.50
Direct material $5.25
Direct manufacturing labor $1.15
Manufacturing overhead $0.25
Variable selling costs $1.85
Annual fixed costs per unit $10.00

Required:
1. What is the Contribution Margin if 11,000 units are sold?
2. What is operating income if 15,000 units are sold?
3. What is the breakeven point in units?
4. What is the margin of safety if 12,000 units are sold?
5. Graph the following assuming 0 to 15,000 units are sold and find the following:
a. Total Revenue
b. Total Variable Costs
c. Total Fixed Costs
d. Total Costs
e. Breakeven point on the graph

Reference no: EM1345311

Questions Cloud

Imagine that a large cargo truck needs to cross a bridge : A movie stuntwoman drops from a helicopter that is 29.0 above ground and is moving with a constant velocity whose components are 8.00 upward and 18.0 horizontal and toward south. You can ignore air resistance.Where on the ground (relative to the p..

Explain the limitations of using a break-even point : What is the role provided by a break-even point and how would you calculate this point? and also explain the limitations of using a break-even point and how would you incorporate this point with management strategic planning?

Problem on ohms law : while the other terminal of the ammeter is connected to the other wire, ammeter shows that the current through the wire is 1 A. You then disconnect everything and travel to the other end of the telephone line, where you repeat the process and find ..

Accounting reporting criteria comparision : Make a 700 word paper, in which you compare and contrast accounting reporting criteria (regulatory environment, issues with foreign currency, differences in GAAP, etc.) of U.S. company with foreign company.

Find the contribution margin : Franscioso Corporation sells many products. Information of revenue and cost per unit when 11,000 units are sold is as follows:

Calculate the dollar amount of dividends : Julio purchased a stock one year ago for dollar 27. The stock is now worth $32, & total return to Julio for owning the stock was 37%. Calculate the dollar amount of dividends that he received for owning the stock during the year?

Fisher effect-u.s and euro inflation and currency rates : Suppose that the U.S and Euro nominal interest rate are equal. Subsequently, the U.S. nominal rate decreases while Euro nominal interest rate remains stable.

Express the total distance traveled and the average speed : During 5 successive 0.97 min intervals, a runner moves at the following constant speeds: 0.436 km/min, 0.250 km/min, 0.160 km/min, 0.160 km/min, and 0.320 km/min. calculate the total distance traveled and the average speed.

How far the fulcrum should an effort of 200 n be applied : A 400 kg car sits 2 m to the right of a fulcrum assume car is on a weightless rod, how far to the left of the fulcrum should an effort of 200 N be applied to keep the system in quilibrium.

User Account

All Pages