The data available for the current year are given belowBased upon the information presented above, the contribution margin for the company was?
Answer(s): B
Contribution margin is sales minus variable costs. Direct costing considers only variable costs as product costs, so contribution margin appears in a direct costing income statement. Absorption costing treats both variable and fixed costs as product costs Thus, variable costs are not stated separately, and contribution margin would not appear in the income statement. Accordingly, the CM is $470,000 ($1,000,000 net revenues -- $400,000 variable CGS -- $130,000 variable S&A costs).
The data available for the current year are given below.using the information presented above, the contribution by Division I was?
Answer(s): A
The contribution margin for Division 1 is $310.000 ($600,000 net revenue - $290.OCN) total variable costs). The contribution controllable by Division l's manager is $260,000 ($310,000 CM -- $50,000 controllable fixed cost), The total contribution by Division 1 equals its net revenue minus all costs traceable to it Accordingly', the total contribution is $190.000 ($260,000 controllable contribution $70,000 allocated but controllable by others) Unallocated costs are excluded from the calculation if separate amour4s are determined to the division's contribution and the controllable contribution. the difference between the division's and the managers performance may be ascertained (assuming controllability of fixed costs can be assigned)
Harper and her band want to put on a concert They have looked at two venues, a small one and a large one, and have compiled me following informationWhat is the breakeven pant of the small venue?
In a breakeven analysis, set the operating income equal to 0 and equate it with revenues minus fixed costs minus variable costs. The breakeven point is therefore
Harper and her band want to put on a concert. They have looked at two varies a small one and a large one, and have compiled the following informationThe variable cost per customer for both venues s $2 The band will charge $10 per customer for the small venue or $14 for U large venue. what is the breakeven point of the large venue?
Answer(s): D
In a breakeven analysis, set the operating income equal to 0 and equate it with revenues minus fixed costs reruns variable costs. The breakeven point is therefore
Harper and her band want to put on a concert They have looked at two venues, a small one and a large one. and have compiled the blowing information:Harper owers the local music store $1 ,000 for equipment. If she intends to use the profit from the concert to pay back the debt, how many tickets must she sell?
Answer(s): C
The breakeven formula equates operating income with revenue minus fixed costs minus variable cost in this problem, set operating income to $1,000 dollars and solve'
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