User Account

All Pages

What is the company contribution margin ratio

Assignment Help Managerial Accounting
Reference no: EM133025172

Problem - The following is Thomas Ltd.'s contribution margin income statement for the year.

Sales $2,000,000

Variable expenses 1,600,000

Contribution margin 400,000

Fixed expenses 200,000

Operating income $200,000

Thomas Ltd. sold 4,000 units during the year.

Required - Using cost-volume-profit analysis, answer the following questions.

What is the company's contribution margin ratio?

What is the company's breakeven sales in units?

If sales increase by 200 units, by how much would operating income increase?

How many units would the company have to sell to attain target operating income of $250,000?

What is the company's margin of safety in dollars?

What is the company's degree of operating leverage?

Reference no: EM133025172

Questions Cloud

Application of the concept of duty of care : How do statutory requirements, the application of the concept of duty of care and child protection requirements impact on youth work?
How important is personality in the leadership style : 1. How important is personality in the leadership style? 2. What does the theories of contingency leadership consist of?
Write a declaration of integrity : This statement should be centered on the importance of integrity and honesty in your personal life.
Making a decision to invest in new presses : What research would you want to conduct prior to making a decision to invest in new presses? Regarding vinyl comeback.
What is the company contribution margin ratio : Thomas Ltd. sold 4,000 units during the year. Variable expenses 1,600,000. What is the company's contribution margin ratio
Discuss the link between leadership and management and HRM : Discuss the link between leadership and management and HRM - development or revision of the Club's organizational mission, vision, values and objectives
How small businesses can benefit from blockchain technology : How small businesses can benefit from blockchain technology? How do you see the future of blockchain technology?
How does culture shape the leader-follower relationship : How does culture shape the leader-follower relationship? What happens when leader try to impose certain cultural values on their followers?
Compute the price of a bond : The yield to maturity (market rate of interest) is 14 percent. The bonds have a 20-year maturity. Compute the price of a bond

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is the initial markup in dollars

What is the initial markup in dollars? What is the initial markup%? The women's wear department plans the following figures for the fall season

  Why the company should not use debt financing

The stock is currently trading at $25 per share, and bonds in the market place with similar risk as Gifting Inc. are yielding 5%. What is the company's WACC?

  Make a flexible budget for the production and sale

Make a flexible budget for the production and sale of 900 units. Indicate whether this variance was favorable (F) or unfavorable (U).

  How the wapc method calculates the equivalent units

XYK produces biscuits and uses process costing systems. SYK wants to know how the weighted-average process-costing method calculates the equivalent units by

  ACC 382 - Accounting and Financial Analysis Assignment

ACC 382 - Accounting and Financial Analysis Assignment Help and Solution - Arizona State University, USA. Compute the times interest earned for Year 2

  Calculte the folowingn1 gdp in income approachnbsp and

calculte the folowingn1 gdp in income approachnbsp and expenditure approach2 gnp3 net gnp4 national income5 personal

  Which of the statements are true about financial perspective

Which of the statements are true about the financial perspective? Direct Materials (Variable) $1,000. Direct Labor (Variable) $1,000

  Should the firm purchase the new equipment

How much value will this new equipment create for the firm and at what discount rate will this project break even, should the firm purchase the new equipment?

  What amount will bmw report cost of good sold for first year

Rawan produced 60,000 products but only sold 54,000. At what amount will BMW report its cost of goods sold for this first year for external reporting purposes?

  Evaluate the cash payback period for each proposal

Project A as well as project B require an initial investment of $1. Determine cash payback period for each proposal. Round your answers to two decimal places.

  What is the amount of cash received for crane company

What is the amount of cash received? Crane Company on July 15 sells merchandise on account to Bridgeport Co. for $3800, terms 4/10, n/30.

  What was adjusted cost of goods sold

Assume the only inventory balance is an ending Finished Goods Inventory balance of $19,000. What was adjusted cost of goods sold?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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