A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard

Question:

A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable costs of $65 per cubic yard. The company has fixed expenses of $15,000 per month. In August, the company sold 240 cubic yards of Grade A mulch.

A. Calculate the contribution margin per unit for Grade A mulch.

B. Calculate the contribution margin ratio of the Grade A mulch.

C. Prepare a contribution margin income statement for the month of August.

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

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Accounting Volume 2 Managerial Accounting

ISBN: 9780357364802

1st Edition

Authors: OpenStax

See More Books

Question Posted: Jul 19, 2023 05:49 AM

See More Questions

The Greek Company has two divisions, Beta and Gamma. Gamma Division produces a product at a variable cost of $6 per unit, and sells 160,000 units to outside customers at $10 per unit and 50,000 units...
Puget Concrete is a major west coast supplier of concrete to residential and commercial builders with multiple sites in the Puget Sound area. Concrete is sold (priced) by the cubic yard including...
A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit and fixed costs increase to...
The binding constants for Mg2+ and Ca2+ are too similar for the species to be determined independently by titration without proper treatment. When a dilute NaOH solution is added to the tap water...
Contrast the Project Plan, the Project Charter, and the WBS.
The following table gives the joint PDF of random variables X and Y, where X = the first-year rate of return (%) expected from investment A, and Y = the first-year rate of return (%) expected from...
What is a flexible manufacturing system, and under what set of circumstances is it most appropriate? LO.1
The U.S. Dairy Industry wants to estimate the mean yearly milk consumption. A sample of 16 people reveals the mean yearly consumption to be 60 gallons with a standard deviation of 20 gallons. Assume...
Required Information Use the following Information for the Exercises below. [The following information applies to the questions displayed below.] The Fields Company has two manufacturing departments,...
Dwight Donovan, the president of Rundle Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase...
A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150
A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850 and has per-unit variable costs of $400 associated with its production. The company has fixed...
Assume that RMO will begin by asking a random sample of customers who order by telephone about purchases made from competitors. RMO will give customers a 15 percent discount on their current order in...
Based on the following information, calculate the sustainable growth rate for Kaleb's Welding Supply: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 7.5% 0.65 0.60...
Waterway Inc. uses LIFO inventory costing. At January 1, 2025, inventory was $216,014 at both cost and market value. At December 31, 2025, the inventory was $283,252 at cost and $262,660 at market...
What is the 32-bit version of: 0000 0000 0001 0101
1. Let A = 2 1 4 3 Find AT, A-1, (A-1) and (AT)-1. 2. Let A = = [ -1 -1 2 22 (a) Find (AB), BT AT and AT BT. (b) (AB)-1, B-1A-1 and A-B-1. ] 1-5 and B = 1
Xavier Ltd. paid out cash dividends at the end of each year as follows: Year Dividend Paid 2018 $250,000 2019 $325,000 2020 $400,000 Assume that Xavier had 100,000 common shares and 5,000, $4,...
Why does the size of a country's GDP matter? How does it affect the quality of life of the country's people?
Consider the discrete group G of order 8 that has the following Cayley diagram e If we have the sequence of operations: fcagec, which of the options represents the reduction of the sequence to a...
Identify whether each of the following transactions would be recorded with a debit (Dr) or credit (Cr) entry. A. B. C. D. E. F. Equipment decrease Common Stock Sold increase Gas and Oil Expense...
State whether the balance in each of the following accounts increases with a debit or a credit. A. Office Supplies B. Retained Earnings C. Salaries Expense D. Accounts Receivable E. Service Revenue
West End Inc., an auto mechanic shop, has the following account balances, given in no certain order, for the quarter ended March 31, 2019. Based on the information provided, prepare West Ends annual...
Compute the value of ordinary bonds under the following circumstances assuming that the coupon rate is 0.06:(either the correct formula(s) or the correct key strokes must be shown here to receive...
A tax-exempt municipal bond has a yield to maturity of 3.92%. An investor, who has a marginal tax rate of 40.00%, would prefer and an otherwise identical taxable corporate bond if it had a yield to...
Please note, kindly no handwriting. Q. Suppose a 3 year bond with a 6% coupon rate that was purchased for $760 and had a promised yield of 8%. Suppose that interest rates increased and the price of...

A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard

Question:

Step by Step Answer:

A To calculate the contribution margin per unit for Grade A mulch we subtract the perunit variable c...View the full answer

Principles Of Accounting Volume 2 Managerial Accounting

Students also viewed these Business questions