Reference no: EM132432289
Managerial Accounting Questions -
Q1. Jenkins Company sells three different laundry baskets. The controller has prepared the following estimates for next year
|
|
A
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B
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C
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Selling Price
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$12
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$20
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$30
|
|
Variable Costs
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4
|
5
|
8
|
|
Estimated sales mix
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60%
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30%
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10%
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Estimated Fixed Costs $1,590,000.
What is the weighted average contribution margin %?
How many of each of the laundry baskets does Jenkins have to sell for the company to make $2,000,000?
Q2. Aisha Exterminating Company performs a wide variety of pest control services. Aisha, the owner, has been examining the following forecasts for 2013.
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Type of Service
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Expected $ volume
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Contribution Margin %
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Termites
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$480,000
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60%
|
|
Lawn Pests
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360,000
|
50
|
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Interior Pests
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360,000
|
70
|
Total Fixed Costs are expected to be $560,000.
1) What is the weighted average contribution margin %?
2) What profit does Aisha expect?
3) The actual sales mix turned out to be 20% termites, 30% lawn pests and 50% interior pests. Total actual sales were $1,200,000 and total fixed costs were $560,000. Determine the actual weighted-average contribution margin and the net income.