User Account

All Pages

What is the total variable contribution margin

Assignment Help Financial Accounting
Reference no: EM133016524

Question - ABC manufactures and sells a pump used in a wide variety of applications. They are considering producing either 30,000 or 40,000 units during the period. Other information is presented in the schedule.

Information - 2019

Beginning inventory 0

Expected sales in units 30,000

Selling price per unit $17.50

Variable manufacturing cost per unit $6.25

Fixed manufacturing overhead cost (total) $150,000

Fixed Selling and administrative expense (total) $47,000

Variable selling expense $2.00/unit

Required - Prepare variable costing and absorption income statements using both the production levels above and answer the following questions.

1. What is the TOTAL VARIABLE CONTRIBUTION MARGIN at production of 40,000 units?

2. What is the ABSORPTION manufacturing unit cost at production of 30,000 units?

3. What is the ABSORPTION manufacturing unit cost at production of 40,000 units?

4. What is the VARIABLE Net Income at production of 40,000 units?

5. What is the ABSORPTION Net Income at production of 30,000 units?

6. What is the ABSORPTION Net Income at production of 40,000 units?

7. What is the value of MOH that is "buried" in inventory at production of 40,000 units?

Reference no: EM133016524

Questions Cloud

Calculate the direct materials price and quantity variances : Direct Materials Actual 9,100 pounds purchased @ $4.10 per pound. Calculate the direct materials price and quantity variances
Primary drivers of change : What have been the primary drivers of change with respect to firms adapting to the social environment?
Advantages and disadvantages of yield management : 1. Briefly define the purpose of the hotel. Why is it important to empathize with the culture of guests?
Asia genomics-making genetic testing a way of life : Asia Genomics: Making genetic testing a way of life - part (A)This is the article I need to analysis For the question what is their problem statement and their
What is the total variable contribution margin : They are considering producing either 30,000 or 40,000 units during the period. What is the TOTAL VARIABLE CONTRIBUTION MARGIN
Firewalls to block employee access to certain websites : Organizations often use firewalls to block employee access to certain websites. Do you agree with this practice, or do you think it violates employee privacy?
Compute the market price of these bonds on November : Compute the market price of these bonds on November 1, 2020 assuming that the prevailing market interest rate at that time is 8%
What is the required rate of return on this stock : If the company's next dividend, which will be paid in a year, is $1.01 and its current stock price is $22.35, what is the required rate of return on this stock
What would be the value of the loan : What would be the value of the loan if the company was paying the bank 4 percent every six months instead of 8 percent per year

Reviews

Write a Review

Financial Accounting Questions & Answers

  Assignment - Research Report Financial Markets

Report Title - Capital Market and Information Efficiency - How Information About the US Share Market Triggers Change in the Australian Share Market

  Listed here are a number of accounts

Listed here are a number of accounts: Land, Common stock, Merchandise inventory, Equipment, Cost of goods sold,

  What the lessee should subtract a

In calculating the amortization of a leased asset, the lessee should subtract a/an? guaranteed residual value and amortize over the life of the asset.

  Prepare general journal and ledger and trail balance

Purchased from Kareem goods of list price of Rs. 6,000 subject to 10% trade discount by cash. Prepare General Journal, Ledger and Trail balance

  How does the degree of operating leverage affect financial

How does the degree of operating leverage affect financial results? Why might a company want to decrease its operating leverage?

  Organize the journal entries through the maturity

Organize the appropriate journal entries through the maturity of each liability.

  Calculate and cost driver rates

Calculate and cost driver rates that are used for tracing appropriate amount of overheads to the said batch and ascertain the cost of batch of components using Activity Based Costing.

  List the weakness in internal control over cash disbursement

At Martinez Company, List the weaknesses in internal control over cash disbursements. Identify improvements for correcting these weaknesses.

  Discuss the difference between authorized and issued

Discuss the difference between authorized, issued, and outstanding shares. How does this relate to the concept of treasury stock?

  Determine diane total income tax deduction per pay period

Determine Diane's total income tax deduction per pay period. Diane works for Downy Corporation in Alberta and earns an annual salary of $44,550.00 paid

  Find how much cash is received from customers in july

Find how much cash is received from its customers in July. The company receives 20% of its monthly sales immediately in cash, 70%

  Find how much did shareholders initially invest in business

The company earned $75,000 during the first year, and distributed $30,000 to shareholders as dividends. How much did shareholders initially invest in business?

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