What is the contribution margin per unit and ratio

Assignment Help Cost Accounting
Reference no: EM133059364

Question - Woodpecker Ltd. produces and sells body boards. It has experienced steady growth over the last 10 years. However, a recent increase in market competition has led Tupac the manager, to believe there is a need for an aggressive campaign next year, 2022 to maintain the entity's present growth. The accountant has provided Tupac with the following data to prepare next year's campaign.

Cost Schedules

Variable costs Per Unit ($)

Direct labour 13.00

Direct materials 8.00

Variable overhead 4.00

Variable cost per Body Board 25.00

Fixed costs

Manufacturing $75,000

Selling 65,000

Administrative 60,000

$200,000

Selling price per Body Board $50.00

Expected sales, 2022 $800,000

Required (show your working):

Required -

1. What is the projected operating profit for 2022?

2. What is the contribution margin per unit and ratio for 2022?

3. What is the break-even point in units and dollars for 2022?

4. How many units and dollars would have to be sold in 2022 to earn target profit of $126,000?

5. Calculate the margin of safety in units and dollars for 2022?

Reference no: EM133059364

Questions Cloud

Programming exercise - remove duplicates in a list : Programming Exercise - Remove duplicates in a list - Implement an algorithm that removes duplicated elements in a list
What is the ocf for this project : The project is estimated to generate $3,250,000 in annual sales, with costs of $2,270,000. If the tax rate is 22 percent, what is the OCF for this project
Determine each project payback and NPV : The cost of capital is 10%, and Garneau usually requires projects to have a payback within four years. Determine each project's payback and NPV
Programming exercise - tayler expansion : Programming Exercise - Tayler expansion - how to determine whether a particular number is a prime number. In this learning activity
What is the contribution margin per unit and ratio : The accountant has provided Tupac with the following data to prepare next year's campaign. What is the contribution margin per unit and ratio for 2022
Calculate the payback period of the new machine : The net cost of this machine is $250,000 and is expected to have a useful life of 5 years, Calculate the payback period of the new machine
Calculate the change in operating profit due to productivity : Factory support costs do not vary with the actual number of motors made that year. Calculate the change in operating profit due to productivity
Programming exercise - prime number : Programming Exercise - Prime number - write a Python program that determines whether a user's input is a prime number or not
How much would Ramiro adjust its investment in Marco Company : Marco reported net income of $74,200 and declared dividends of $20,300 during the year. How much would Ramiro adjust its investment in Marco Company

Reviews

Write a Review

Cost Accounting Questions & Answers

  Journalize the adjusting entry at december

Journalize the adjusting entry at December 31, assuming Elburn determines that Capp's $1,400 balance is uncollectible.

  Develop a cost function using the data

Barney's Pizza Parlour recently opened for business. Develop a cost function using the data from the accounting records

  Estimate the cash required to make purchases in June

On June 1, the company has 12,000 parts in stock, although sales for June are estimated to total 11,400 parts. Estimate the cash required to make purchases

  How many workers are needed to meet the projected demand

What will the Total month ending inventory be over the 4 month period? How many workers are needed to meet the projected demand?

  Determine the total flexible budget cost

The company has budgeted variable costs of $135 for each connector and fixed costs of $8,000 per month. Determine the total flexible budget cost

  Create contribution format income statement for the company

If sales increase by $100,000 a month, by how much would you expect net operating income to increase? What are your assumptions?

  On 1st january of the current year feller corporation

on 1st january of the current year feller corporation issued 3000000 of 10 percent debenture bonds on a basis to yield

  The administrative assistant in charge of payroll

Nina Wells, the administrative assistant in charge of payroll, created a fictitious employee, wrote weekly checks to the fictitious employee, and then personally cashed the checks for her own benefit.

  Can a company change its method of costing inventory

Can a company change its method of costing inventory? Explain. Because of imperfections, an item of merchandise cannot be sold at its normal selling price.

  Evaluate chief executive officer knight strategy

Evaluate Chief Executive Officer Knight's strategy for the Emerson Electric Company. In view of the strategy, evaluate the planning and control system

  What is the ending balance of work-in-process control

Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance

  Schedule of Expected Cash Collections for November

The November beginning balance in the accounts receivable account is $68,000. Schedule of Expected Cash Collections for November and December

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