Question
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions. BARRY'S COFFEE CAKES Contribution Margin
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions.
| BARRY'S COFFEE CAKES | |||||||||
| Contribution Margin Income Statement | |||||||||
| 20,000 units | 25,000 units | ||||||||
| Total | Total | Per Unit | Percents of Sales | ||||||
| Sales revenue | $ | 150,000 | |||||||
| Less: Variable costs | 50,000 | ||||||||
| Contribution margin | 100,000 | ||||||||
| Less: Fixed costs | 30,000 | ||||||||
| Net operating income | $ | 70,000 | |||||||
Knowledge Check 01
What is the unit contribution margin?
-
$7.50
-
$2.50
-
$5.00
-
$3.00
Knowledge Check 02
What is the contribution margin ratio?
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33%
-
50%
-
40%
-
67%
Knowledge Check 03
If there is no change in fixed costs, what will the net operating income be when 25,000 units are sold?
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$95,000
-
$125,000
-
$70,000
-
$87,500
Below is the data from a regression analysis performed by Earth Right Spa on its overhead costs and clients for the past year. Use this information to answer the following questions.
| SUMMARY OUTPUT | ||||||
| Regression Statistics | ||||||
| Multiple R | 0.949 | |||||
| R Square | 0.901 | |||||
| Adjusted R Square | 0.891 | |||||
| Standard Error | 1102.512 | |||||
| Observations | 12.000 | |||||
| ANOVA | |||||
| df | ss | MS | f | Significance F | |
| Regression | 1 | 111011767.37 | 111011767.37 | 91.33 | 0.00 |
| Residual | 10 | 12155332.63 | 1215533.26 | ||
| Total | 11 | 123167100.00 | |||
| Ceofficients | Standard Error | tStar | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95% | |
| Intercept | 6825.84 | 724.43 | 9.42 | 0.00 | 5211.70 | 8439.98 | 5211.70 | 8439.98 |
| Guests (X) | 32.86 | 3.44 | 9.56 | 0.00 | 25.20 | 40.52 | 25.20 | 40.52 |
Knowledge Check 01
Identify the fixed overhead cost per month from the data provided.
-
$8,364.72
-
$946.56
-
$6,825.84
-
$6,546.54
Knowledge Check 02
What is the variable overhead cost per client served?
-
$724.43
-
$25.20
-
$40.52
-
$32.86
Knowledge Check 03
What will be the total overhead cost if 100 clients are served?
-
$10,111.84
-
$79,269.07
-
$9,345.86
-
$10,878.24
| Month | Customers | Total Overhead Cost | ||||
| March | 5,000 | $ | 85,000 | |||
| April | 7,500 | $ | 91,500 | |||
| May | 8,000 | $ | 94,000 | |||
| June | 9,000 | $ | 97,000 | |||
| July | 6,000 | $ | 87,800 | |||
| August | 6,500 | $ | 92,700 | |||
Knowledge Check 01
What is the total overhead cost in the month with the highest activity?
-
$85,000
-
$91,500
-
$97,000
-
$94,000
Knowledge Check 02
What is the variable cost per unit?
-
$2.70
-
$4.00
-
$3.50
-
$3.00
Knowledge Check 03
What is the total fixed overhead cost?
-
$85,000
-
$80,000
-
$50,000
-
$70,000
The span at which the cost behaviors are expected to hold true is called:
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Auditing Web Applications A Complete Guide
Authors: Gerardus Blokdyk
1st Edition
1038803721, 978-1038803726
