Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how do i calculate the income? are the others correct? A jeans maker is designing a new line of jeans called Slams. Slams will sell

image text in transcribed

how do i calculate the income? are the others correct?

A jeans maker is designing a new line of jeans called Slams. Slams will sell for $365 per unit and cost $262.80 per unit in variable costs to make. Fixed costs total $64,000. (Round your answers to 2 decimal places.) 1. Compute the contribution margin per unit. Sales Less: Variable cost 365.00 per unit (262.80) per unit 102.20: per unit TA $ Contribution margin 2. Compute the contribution margin ratio. Numerator: 1 Denominator: Contribution Margin Ratio = Contribution margin per unit 1 Selling price per unit Contribution margin ratio = 28.00% 365.00 102.20 IL 7 $ 3. Compute income if 5,800 units are produced and sold Income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

12th edition

1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056

Students also viewed these Accounting questions