Naylor Manufacturing Ltd. sold 8,000 units and recorded sales of $400,000 for the first month of 2022.

Question:

Naylor Manufacturing Ltd. sold 8,000 units and recorded sales of $400,000 for the first month of 2022. In making the sales, the company incurred the following costs and expenses.

Instructions

a. Prepare a CVP income statement for the month ended January 31, 2022.

b. Calculate the contribution margin per unit.

c. Calculate the contribution margin ratio.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting Tools For Business Decision Making

ISBN: 9781119731825

6th Canadian Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

See More Books

Question Posted: May 09, 2023 06:34 AM

See More Questions

1. Study the theories of psychology 2. Choose a theory that you think describes human nature or piece together your own theory and write a short synopsis which Identifies: (a) what humans are, (2)...
Naylor Manufacturing Inc. sold 8,350 units and recorded sales of $626,250 for the first month of 2020. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost...
Naylor Manufacturing Inc. sold 8,000 units and recorded sales of $400,000 for the first month of 2016. In making the sales, the company incurred the following costs and expenses. Instructions (a)...
Two popular methods of financial statement analysis are horizontal analysis and vertical analysis. Explain the difference between these two methods. Discuss.
Nisku Inc. (Nisku) and Grimsby Ltd. (Grimsby) are similar companies. You are considering investing in one of them and have received information about each for the year ended December 31, 2017....
CalculatingMarketValueRatios: MakersCorp.hadadditionstoretainedearningsfortheyearjustendedof$395,000.Thefirmpaidout$195,000incash...
1. The best way to get something done is to do it yourself. True or False
The Marriott Tub Company manufactures two lines of bathtubs, called model A and model B. Every tub requires a certain amount of steel and zinc; the company has available a total of 25,000 pounds of...
Icy Snowmobile, Inc., has an annual demand for 1,200 snowmobiles. Their purchase cost for each snowmobile is $2,500. It costs about $250 to place an order, and the holding rate is 35 percent of the...
The trial balance of Super Employment Services pertains to December 31, 2017, the end of Supers annual accounting period. Data needed for the adjusting entries include the following: a. Supplies on...
Montreal Seating Co., a manufacturer of chairs, had the following data for 2022: Instructions a. Calculate the contribution margin ratio. b. Calculate the break-even point in dollars. c. Calculate...
Computer Parts Inc., a manufacturer of computer chips, employs activity-based costing. The following budgeted data for each of the activity cost pools are provided for the year 2022. For 2022, the...
A new accounting student has been asked to determine the balance that should be reported as cash and cash equivalents as at December 31 for one of the firm's clients. The following information is...
Design an arithmetic circuit with two selection variables S 1 and S 0 and two n- bit data inputs A and B. The circuit generates the following eight arithmetic operations in conjunction with carry C...
Larrys Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Larrys prints...
Pecos Pecan Pads makes pressed pecan wood covers to prevent weed growth. During July 2009, the company produced and sold 44,000 rolls and recorded the following cost data: Requirements 1. Compute the...
The Human Resources departments costs are allocated to the other departments based on the number of direct labor hours. The departments expected fixed costs are 400,000 and its variable costs are...
A lawyer allocates overhead costs based on her hours working with different clients. The lawyer expects to have $$200,000$ in overhead during the year and expects to work on clients cases 2,000...
What are some ways ranchers can better manage risk associated with drought?
Willingness to pay as a measure of a person's value for a particular good measures the maximum a person would be willing to pay requires that payment actually be made depends on the satisfaction that...
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods...
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods...
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods...
More info
American Food Services, Incorporated leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1 , 2 0 2 4 . The lease...
Which of the following statements is true? Financial measures tend to be lag indicators that report on the results of past actions. LA profit center is responsible for generating revenue, but it is...

Naylor Manufacturing Ltd. sold 8,000 units and recorded sales of $400,000 for the first month of 2022.

Question:

Cost of goods sold Selling expenses Administrative expenses Variable $184,000 40,000 16,000 Fixed $70,000 30,000 40,000

Step by Step Answer:

a b 160000 8000 20 contribution margin per unit c 20 50 40 con...View the full answer

Managerial Accounting Tools For Business Decision Making

Students also viewed these Business questions