calculate a weighted average contribution margin per unit, Financial Accounting

Assignment Help:

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

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:

 

 

 

Marketing costs

56,700

 

 

General and administrative costs

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.


Related Discussions:- calculate a weighted average contribution margin per unit

Estimate expected returns, Use the data from "Beating the Market Quarterly"...

Use the data from "Beating the Market Quarterly" problem. Use that data to estimate expected returns and a covariance table for the 5 stocks from that problem. Use your estimates t

Calculate the intrest rate and discount rate, You are considering whether o...

You are considering whether or not to go to graduate school. Well... there are many things to consider, of course, such as the type of job you would thus get, the opportunity to li

Leslie, My trial balance is off by $304 and I can''t find my error

My trial balance is off by $304 and I can''t find my error

Cash flow, Please use the budget information in Assignment 7.1-case to prep...

Please use the budget information in Assignment 7.1-case to prepare the budget in the Excel document Assignment 7.1-budget and cash flow.

Net cash provided by operating activities was?, 50. In preparing a company'...

50. In preparing a company's statement of cash flows for the most recent year on the indirect method, the following information is available: 52,000-Net income for the year 18,00

Computations, This is a comprehensive assessment of the material related to...

This is a comprehensive assessment of the material related to our first two class meetings.  You are NOT being tested on material related to capital budgeting (NPV, IRR, etc.). Tha

Construct the market value balance sheet, Construct the Market Value Balanc...

Construct the Market Value Balance Sheet XYZ, Inc., another company founded by Larry Davidson in 2005, is currently entirely equity financed. That means the company carries no

What is the value of the firm, Firm Value: Old School Corporation expec...

Firm Value: Old School Corporation expects an EBIT of $9,000 every year forever. Old School currently has no debt, and its cost of equity is 18 percent. The firm can borrow at

Ethic , i need you to answer my cases

i need you to answer my cases

brooks''s stock, Investors need a 15% rate of return on Brooks Sisters' st...

Investors need a 15% rate of return on Brooks Sisters' stock (rs = 15%). a.  What would the value of Brooks's stock be if the last dividend was D0 = $1.5 and if investors expect

Write Your Message!

Captcha
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