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evablogger [386]
3 years ago
12

Vaughn Manufacturing has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected

sales for Vaughn are 40000 Standard and 60000 Supreme. Fixed expenses are $1950000. At the expected sales level, Vaughn’s net income will be:
Business
1 answer:
7nadin3 [17]3 years ago
3 0

Answer:

expected income 105,000

Explanation:

Our goal would be to multiply the average contribution margin of the company by the total units produced.

average \: contribution \times units\: sold = contribution \: margin\\30 \times (40,000 + 60,000) = 30\times 100,000 = 300,000

<em>Important:</em> <u>the given is the weighted average</u>, so the units mix (40% STD 60% SUPREME) is taken into consideration already, no need to additional calculation. If we were told the Contribution Margin per type of unit we will be needing to calculate the average CM.

<em>Now,</em> second step will be subtract the fixed cost from the contribution to get the pretax income

Net \:Income = contribution \: margin - fixed \: cost\\300,000 - 195,000 = 105,000

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3 years ago
Under the direct​ write-off method, the entry to write off an uncollectible account will include​ ________. A. a credit to the A
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4 years ago
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