A company produces a product with a contribution margin of $36. If the company incurs $62,000 in fixedcosts, expected to sell 2500 units, and has a tax rate of 35%, the pre-tax income is The ABC Company had its highest level of production in May when they produced 4000 units at a total cost of $110000 and its lowest level of production in November when they produced 2500 units at a total cost of $87500. Using the high-low method, the estimated variable cost per unit is $15 or 50000The amount by which a product’s unit selling price exceeds its total unit variable cost is the: A company has pre-tax income of $125000 and an income tax rate of 35%. The after-tax income is Managers make assumption in CVP analysis. These assumptions include:
A manufacturing company incurs rent costs of $12500 per month. The company manufactured 250000 units in May and 300,000 units in June. The cost per unit in May and June, respectively, is: The three methods used to classify costs into their fixed and variable components includes When preparing a scatter diagram, the estimated line of cost behavior crosses the vertical axis at the: A company has fixed costs of $50,000 while manufacturing a product that has variable costs of $4 per unit and sells for $15 per unit. The break-even point is ____ units Cost-volume-profit analysis helps managers predict how changes in ___ and ___ levels affect income A manufacturing company incurs direct materials costs of $5 per unit. The total direct materials is ____ when the company manufactures 2000 units$12000 or $3A manufacturing company incurs direct materials cost of $6 per unit. The total direct materials cost is $12000 when the company manufactures 2,000 units- $12,000A company incurs $12000 in direct labor costs when the produce 480 units and $12500 in direct labor costs when they produce 500 units. The direct labor cost per unit is
A company sells two models of a product – basic and premium. The basic model has a variable cost of $75 and sells for $100. The premium model has a variable cost of $100 and sells for $150. If the companyusually sells 5000 basic models and 25000 premium models, then the weighted-average contribution margin is $33.34 or 150 units$25 x 2/3 + $50 x 1/3 = $16.67 + 16.67 = 33.34$15000 / (2 x ($100-75) + 1 x ($150-100)) = 150 unitsSales mix is the (volume/ratio/mix) ____ of the sales volumes for various products.
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- Contribution Margin