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

Characteristics of a will-executorship laws and accounts, Characteristics o...

Characteristics of a will 1) Dispositionary:  A will disposes the deceased’s property. 2) Formality:   For a will to be valid, it  must be written and signed by the d

Estimate comparative advantage, The only two countries in the world, Alpha ...

The only two countries in the world, Alpha and Omega, face the following production possibilities frontiers (all units measured in tons). Alpha's Production PossibilitiesFrontier

LO9-1, Adger corporation is a service company that measures its output base...

Adger corporation is a service company that measures its output base on the number of customers serviced. The company provided the following fixed and variable cost estimates that

Simulate the robot on a computer, Assuming the robot is placed on track at ...

Assuming the robot is placed on track at the packing station facing away from the station) the robot traverses the entire track. During this step, the robot will follow a left-hand

Determine estimated cost, XYZ Company is a large manufacturer of auto parts...

XYZ Company is a large manufacturer of auto parts for the auto manufacturers and parts distributors. XYZ has plants throughout the world, but most are located in North America. XYZ

Use net present value and payback period method, Given the following cash f...

Given the following cash flows for projects A and B:   Year      Project A   Project B     0       -100,000     -150,000   (Project Cost)     1         25,000

Prepare a purchases ledger control account, Question: The following inf...

Question: The following information was extracted from the books of William Noel for the year ended 30 April 2009.

Depreciation, what are methods of calculating depreciation?

what are methods of calculating depreciation?

Prepare the income statement, Dillings Ltd is a wholesaler and distributor ...

Dillings Ltd is a wholesaler and distributor of catering of office equipment. The following list of balances was extracted from its books at 31 March 2004: The following ad

Define the term- how are businesses organised, Define the term- How are bus...

Define the term- How are businesses organised Nearly all businesses which involve more than a few owners and/or employees are set up as limited companies. This means that finan

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