What is abc inc contribution margin

Assignment Help Managerial Accounting
Reference no: EM132528657

Selling price per unit (package of 2 CDs)...................................... $26.00

Variable costs per unit:

Direct material...............................................................................................................$6.50

Direct labor......................................................................................................................$5.00

Artist's royalties..............................................................................................................$5.00

Manufacturing overhead..........................................................................................$3.50

Selling expenses............................................................................................................$1.00

Total variable costs per unit............................................................$21.00

Annual fixed costs:

Manufacturing overhead..........................................................................................$188,000

Selling and administrative.......................................................................................$270,000

Total fixed costs................................................................................$458,000

Forecasted annual sales volume (120,000 units).........................$3,120,000

Question 1: What is ABC Inc.'s contribution margin (CM)?

Reference no: EM132528657

Questions Cloud

Explain the empirical approach to measure managerial : Explain the empirical approach to measure managerial overconfidence. Also, explain the underlying reasons/mechanisms why it works
What is the annual after-tax cash flow for bavarian brew : Bavarian Brew has the option to purchase the machine. If the present value of the cash flows associated with the purchase is $78 000, what is the net present va
Determine technical engineering variable cost per copy : Determine Technical Engineering's variable cost per copy. Technical Engineering presently leases a copying machine on a monthly basis.
Make an investment decision of project : Make an investment decision of this project by providing calculations:
What is abc inc contribution margin : What is ABC Inc.'s contribution margin?Selling price per unit (package of 2 CDs),Total variable costs per unit,Forecasted annual sales volume (120,000 units)
Taxes on net short-term and long term capital gains : Assuming that investors pay taxes on net short-term and long term capital gains at the end highest rate, calculate the tax cost ratio.
Which business transactions are impacted on income statement : Which business transactions are impacted on income statement, balance sheet and statement of cash flow when you are using the accrual accounting method
What is the payback period for each project : What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
What would the total recruiting cost be : What would their total recruiting cost be? Assume Digby spends the same amount extra above the $1,000 recruiting base as they did last year.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What were the standard hours allowed for the year

Compute the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances.

  Determine missing information pertaining to each investment

Determine the missing information pertaining to each investment proposal. (Round your percentage answer to 1 decimal place (i.e., 0.123 to be entered)

  Prepare the company cash budget for the upcoming fiscal year

Prepare the company‘s cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)

  What is the present value of the lease payments

What is the simple rate of return on the investment to the nearest tenth of a percent - what is the present value of the lease payments

  What would you do if you were debbie

Do you think that the tax minimization scheme described to Debbie Kishimoto is in harmony with the ethical behavior that should be displayed by top corporate executives? Why or why not? What would you do if you were Debbie?

  Find the overhead application rate per hour will

20,000 machine hours will be worked during 2014. If overhead is applied on the basis of direct labor hours, the overhead application rate per hour will

  Prepare a differential analysis report

Prepare a differential analysis report, dated April 21 of the current year, on the proposal to sell at the special price and prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q.

  What is the cost of owning

Big Sky Mining Company must install $1.5 million,What is the cost of owning? What is the cost of leasing? What is the NAL of the lease?

  What the amount of overhead debited to work in process

$140000 is indirect labor. Actual overhead incurred was $420000. The amount of overhead debited to Work in Process Inventory should be

  Journalize the treasury stock transactions

The corporation sold 1,200 shares of treasury stock for cash at 72 per share. Journalize the treasury stock transactions.

  Prepare a journal entry to close the manufacturing overhead

Prepare a journal entry to close the manufacturing overhead account assuming that the amount($90,000) is material.

  Determine the increase in net operating income

Determine the increase in net operating income in each market if the advertising campaign were to be initiated in that market.

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