Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

product A & B Jarvis Company produces a product that has a selling price of $20 and a variable cost of $15 per unit. The

image text in transcribed
image text in transcribed
image text in transcribed product A & B
image text in transcribed
image text in transcribed
Jarvis Company produces a product that has a selling price of $20 and a variable cost of $15 per unit. The company's fixed costs are $50,000. Label each answer A - E. (15 points) A) What is the contribution margin per unit? B) How many units must Jarvis sell to break even? What amount of sales in dollars must Jarvis achieve to break even? D) How many units must Jarvis sell in order to make a profit of $100,000? D) What amount of sales in dollars must Jarvis achieve to make a profit of $100,000? E) Prepare in the space below the contribution margin format income statement if Jarvis sells 15,000 units. Columbus Industries makes a product that sells for $25 a unit. The product has a $5 per unit variable cost and total fixed costs of $9,000. Label each answer A - C. (6 points) A) What is the contribution margin per unit? B) How many units must Jarvis sell to break even? C) At budgeted sales of 2,000 units, what is the margin of safety ratio to the nearest tenth of a percent? The Victor Company sells two products. The sales mix of the products is 25% for Product A and 75% for Product B. The following information is provided: Label each answer (8 points). Product A Product B Unit Selling Price $100 $150 Unit Variable Costs $30 $70 A) What is the weighted average contribution margin per unit to the nearest cent? B) If fixed costs are $155,000, how many total units must Victor Company sell? C) How many units each of Product A and Product B must Victor Company sell? Product A: A. What are the cost objects? B. What are the cost drivers? C. What is the allocation rate if total rent to be allocated to the departments is equal to $200,000? D. How much store rent should be allocated to each department if total rent is equal to $200,000? (Do not round your intermediate calculations.) Department 1: Department 2: Department 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

ISE Business Accounting

Authors: Frank Wood, Alan Sangster

8th Edition

0273638408, 9780273638407

More Books

Students also viewed these Accounting questions

Question

=+How is CSR different from strategic CSR?

Answered: 1 week ago