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raketka [301]
3 years ago
9

In the month of March, Ivanhoe Salon services 550 clients at an average price of $150. During the month, fixed costs were $26,88

0 and variable costs were 60% of sales. (a) Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio. Contribution margin in dollars $ 60 Contribution margin per unit $ 180 Contribution margin ratio %
Business
1 answer:
GrogVix [38]3 years ago
5 0

Answer:

Explanation:

Variable cost = 60% x $150 = $90

a) Total contribution margin in dollars = ($150 - $90) x 550 = $33,000

b) Unit contribution margin = 150 - 90 = $60

c) Contribution margin ratio = 60/150 = 40%

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Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo
11111nata11111 [884]

Answer:

Wingate Company

1. Contribution Format

Segmented Income Statement

For the most recent month

                                                 East            Central         West        Total

Sales                                     $408,000   $650,000   $580,000 $1,638,000

Variable expenses as a

percentage of sales              208,080      227,500      243,600      679,180

Contribution margin            $199,920   $422,500    $336,400  $958,820

Traceable fixed expenses $280,000    $333,000   $204,000    $817,000

Non-traceable fixed expenses                                                        238,000

Net income                          ($80,080)     $89,500    $132,400    ($96,180)

2. The company's net operating loss will decrease by $28,824.

Explanation:

a) Data and Calculations:

WINGATE COMPANY

Income Statement for the most recent month

Sales                                    $1,638,000

Variable expenses                   679,180

Contribution margin               958,820

Fixed expenses                   1,055,000

Net operating income (loss) $(96,180)

Division

                                                 East            Central         West        Total

Sales                                    $408,000   $650,000   $580,000  $1,638,000

Variable expenses as a

percentage of sales                   51%            35%            42%

Traceable fixed expenses $280,000   $333,000   $204,000     $817,000

Non-traceable fixed expenses                                                        238,000

West Division:

Traceable fixed costs = $229,000 ($204,000 + $25,000)

Sales revenue = $672,800 ($580,000 * 1.16)

Variable expenses = $282,576 ($672,800 *42%)

1. Contribution Format

Segmented Income Statement

For the most recent month

                                                 East            Central         West        Total

Sales                                     $408,000   $650,000   $580,000 $1,638,000

Variable expenses as a

percentage of sales              208,080      227,500      243,600      679,180

Contribution margin            $199,920   $422,500    $336,400  $958,820

Traceable fixed expenses $280,000    $333,000   $204,000    $817,000

Non-traceable fixed expenses                                                        238,000

Net income                          ($80,080)     $89,500    $132,400    ($96,180)

2. Contribution Format

Segmented Income Statement

For the most recent month

                                                 East            Central         West        Total

Sales                                     $408,000   $650,000   $672,800 $1,730,800

Variable expenses as a

percentage of sales              208,080      227,500      282,576       718,156

Contribution margin            $199,920   $422,500    $390,224 $1,012,644

Traceable fixed expenses $280,000    $333,000   $229,000  $842,000

Non-traceable fixed expenses                                                        238,000

Net income                          ($80,080)     $89,500     $161,224   ($67,356)

Decrease in net operating loss = $28,824 ($96,180 - $67,356)

7 0
3 years ago
Suppose that the government sets a price floor for milk that is above the competitive equilibrium price With the price floor, co
SIZIF [17.4K]

Answer:

The correct answer is: demand curve; option C.

Explanation:

A price floor is the lowest limit fixed on the price of a product. It is imposed by the government to protect the producers.  

A binding price floor is fixed above the equilibrium market price. It is a horizontal line above the equilibrium price.  

The consumers are willing to purchase the quantity where the price floor intersects the demand curve.  

There is an excess supply as firms supply more at a higher price while the consumers demand less.  

Since there is a difference between the equilibrium price and what the consumers are willing to pay, there exists a deadweight loss. This deadweight loss is the triangular area below the demand curve and above the supply curve between equilibrium quantity and price floor quantity.

8 0
3 years ago
If your college leadership sought your advice on setting tuition, why would it matter if your college was the only college for m
gizmo_the_mogwai [7]

Answer:

yes, it would matter, because you want to get the best out of it

Explanation:

6 0
3 years ago
Assume that a company makes only three products: Product A, Product B, and Product C. Currently, the company uses a conventional
VikaD [51]

Answer:

Company A

Using the activity-based costing approach, the percent of the company’s total Material Handling activity cost that would be allocated to Product B is:

 

d. 33%

Explanation:

a) Data and Calculations:

                                               Product A   Product B    Product C   Total Use

Number of units produced   1,000 units  7,000 units 2,000 units   10,000

Direct labor hours per unit        2 hours        2 hours       2 hours            6

Number of setups                  30 setups    50 setups   20 setups        100

Number of material moves  600 moves 400 moves  200 moves    1,200

Number of products                1 product     1 product     1 product           3

Product B usage of Material Handling Activity Cost:

Allocation Basis = Number of material moves

Product B material moves = 400

Total material moves = 1,200

Therefore, the percentage of Product B usage of material handling activity is:

= 400/1,200 * 100

= 33%

6 0
3 years ago
Which act covering most private-sector employers prohibits certain unfair labor practices, such as a union's refusal to bargain
kolezko [41]
The correct option is C.
The Taft Hartley Act is a United States federal law which limits the activities and powers of labour unions. The Act was enacted in 1947 and it prohibits some union practices, it also requires improvement in union disclosure of political and financial dealings. <span />
5 0
3 years ago
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