Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maple Corp. has a selling price of $21, variable costs of $14 per unit, and fixed costs of $26,000. Maple expects profit of $301,000 at

image text in transcribed
image text in transcribed
Maple Corp. has a selling price of $21, variable costs of $14 per unit, and fixed costs of $26,000. Maple expects profit of $301,000 at its anticipated level of production. What is Maple's unit contribution margin? Multiple Choice $7.00 $21.00 $28.00 $10.50 Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year: Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite $514,000 179,000 335,000 258,000 $ 77,000 Lime Nina $ 272,500 $230,000 124,200 101,000 148,300 129,000 160,250 103,750 $ (11,950) $ 25,250 Total $1,016,500 404,200 612,300 522,000 90,300 a. What would Rock's profit margin be if the Lime division were dropped? lata (at 6 3710 it 10 it 10 at 3 at 7 b. What would Rock's profit margin be if the Nina division were dropped? at 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Management Accounting A Business Planning Approach

Authors: Noah P. Barsky, Jr. Anthony H. Catanach

2nd Edition

1516506286, 978-1516506286

More Books

Students also viewed these Accounting questions

Question

How does selection differ from recruitment ?

Answered: 1 week ago