Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Part A
The contribution margin income statement of Nice Cup Company for 31 December 2011 follows:
Nice Cup Company
Contribution Margin Income Statement
Year Ended December 31, 2011
RM
Sales revenue
127,000
Variable costs:
Cost of goods sold
32,400
Marketing costs
17,300
General and administrative costs
10,625
60,325
Contribution margin
66,675
Fixed costs:
56,700
6,300
63,000
Operating income
3,675
Nice Cup Company sells two dozen of chocolate cupcake for every dozen of blueberry cupcake. A dozen chocolate cup cake plain donuts sells for RM6, with total variable cost of RM2 per dozen. A dozen blueberry cupcake sells for RM8, with total variable cost of RM5.50 per dozen.
REQUIRED
a) Determine Nice Cup Company's monthly breakeven point in dozens of chocolate cupcake and blueberry flavor cupcake. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales.
b) Compute Nice Cup Company's margin of safety in value for December 2011.
c) If Nice Company can increase monthly sales volume by 10%, what will operating income be? (The sales mix remains unchanged.)
Part B
a) Explain the term sales mix in your own words. How does sales mix affect the contribution margin?
b) Explain how to calculate a weighted average contribution margin per unit.
Failure to record depreciation at year end will result in all of the following except Understatement of total liabilities. Overstatement of total assets. Overstatement of net incom
Q. What is Lifetime Learning Credit? Lifetime Learning Credit - This allows a credit for 20 percent of qualified tuition and fees paid by taxpayer with respect to one or more s
On July 1, 2010, Spear Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2010 and mature on April 1, 2020. Interest is payable sem
Assume you hold a diversified portfolio having of a $7,500 investment in every of 20 different common stocks. The portfolio's beta is 2.15. Now, assume you sell one of the stocks w
Who are the users of accounting information? For accounting information to be useful, accountant should be clear for whom the information is being prepared and for what purpose
Illustration of Corporate tax During the year ended31/12/2003, A Ltd. had estimated the corporation tax for the year to be £100,000. The amount was still outstanding as at 31/1
What are some examples of co branded foods? is cool ranch doritos one?
In its first month in business, Jones, Inc. sold merchandise to customers on account for $119,800. It collected $72,000 on those sales during the first month and recorded Revenue f
Determine the future value of Rs.1000 compounded continuously for 5 year on the interest rate of 12 percent per year and contrast it along with annual compounding. Solution :
RESOLUTIONS OF CREDITORS Normally, decisions at meetings of creditors are taken by ordinary resolution, viz., a resolution passed by a simple majority in value of creditors pre
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd