Upis ubeu, diu equipment depreciation Mycow Raw materials Employee wages Dept. manager salary Supplies used Depreciation Equip. Utilities Rent Totals Snowmobile $19,700 10, 680 4,500 3,520 6,200 380 5,900 $50, 800 Budget ATV $27,70 20,700 5.400 1,100 12,700 560 Combined $ 47,400 31,300 9,900 4.620 18,900 9:10 12,469 $125,460 Shoumabile $19,620 10,880 4,600 3.370 6,200 350 S.See $50,520 Actual ATV Combined $29,020 $ 48,640 21,440 32,320 4,600 9,200 1,120 4,490 12,700 18.900 520 870 6,500 12,000 $75,900 $126,420 6,500 $74,660 Prepare a responsibility accounting report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, Snowmobile Department For the Year Budgeted Over (Under Actual Amount Amount Budget Controllable Costs Raw materials Employee wages Supplies used Depreciation Equipment Totals Neyt A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $370 per pair and cost $262.70 per pair in variable costs to make. (Round your answers to 2 decimal places.) (1) Compute the contribution margin per pair Contribution margin (2) Compute the contribution margin ratio Choose Numerator: Choose Denominator Contribution Margin Ratio Contribution margin ratio Blanchard Company manufactures a single product that sells for $210 per unit and whose total variable costs are $168 per unit. The company's annual fixed costs are $575,400. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio (c) Compute the company's break-even point in units. Choose Numerator: Choose Denominator: Break-Even Units Break-even units (d) Compute the company's break-even point in dollars of sales. Choose Numerator: Choose Denominator: Break-Even Dollars Break-even dollars Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $152 per unit. The company's annual fixed costs are $628,000. The sales manager predicts that annual sales of the company's product will soon reach 39,800 units and its price will increase to 5198 per unit. According to the production manager, variable costs are expected to increase to $138 per unit, but fixed costs will remain at $628,000 The income tax rate is 30% What amounts of pretax and after-tax income con the company expect to earn from these predicted changes? Prepare a forecasted contribution margin income statement BLANCHARD COMPANY Forecasted Contribution Margin Income Statement Units S per unit Contribution margin Company A is a manufacturer with sales of $3,700,000 and a 60% contribution margin. Its fixed costs equal $1,810,000. Company Bis a consulting firm with service revenues of $3,800,000 and a 20% contribution margin. Its fixed costs equal $330,000 Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales. Complete this question by entering your answers in the tabs below. DOL Company Benefits Compute the degree of operating leverage (DOL) for each company, Contribution Margin Income Statement Company A Company B Degree of Operating Leverage Denominator Choose: Numerator Ratio Degree of Operating Leverage Company A Company B
