Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Chapter 10, Problem 12P
Determine the break-even volume of work for a company with a fixed overhead of $63,000, a contribution margin ratio of 11.0%, and a required level of profit of $60,000.
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Calculate the contribution margin of a product for a service company if revenues are
$50,000, variable expenses are $30,000, and fixed expenses are $15,000. a.) $
20,000 b.) $80,000 c.) $35,000 d.) $5,000
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Sales $97,000
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Required:
Calculate the contribution margin ratio?
A company has sales of $125,000, variable costs of $45,000 and fixed costs of $30,000. The contribution margin ratio is
Chapter 10 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 10 - What are some of the ways a company can increase...Ch. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - A construction company has total revenues of...Ch. 10 - A construction company has total revenues of...Ch. 10 - A construction company has total revenues of...Ch. 10 - A construction company has total revenues of...Ch. 10 - Determine the break-even volume of work for a...Ch. 10 - Determine the break-even volume of work for a...
Ch. 10 - Determine the break-even volume of work for a...Ch. 10 - Determine the break-even volume of work for a...Ch. 10 - A construction company has a fixed overhead of...Ch. 10 - A construction company has a fixed overhead of...Ch. 10 - Determine the break-even contribution margin ratio...Ch. 10 - Determine the break-even contribution margin ratio...Ch. 10 - Determine the break-even contribution margin ratio...Ch. 10 - Determine the break-even contribution margin ratio...Ch. 10 - Determine the profit and overhead markup for a...Ch. 10 - Determine the profit and overhead markup for a...Ch. 10 - Prob. 21PCh. 10 - Prob. 22P
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- The following information is available from the accounting records of Eva Corporation. Fixed costs per period are $4800. Sales volume for the last period was $19,360, and variable costs were $13,552. Capacity per period is a sales volume of $32,000. Compute the total contribution margin.arrow_forwardFor a table manufacturing company, variable cost is $125.00 per Unit, rent is $2,544.00 per month and insurance is $1,095.00 per month. Selling price for a table is $200.00 per Unit, How much is the company contributing to covering their fixed costs or generating profits? Submitarrow_forwardA company has fixed costs of $270,000, a contributmargin per unit of $14, and a contribution margin ratio of 55%. If the company wants to earn a target income of $60,000, what amount of sales must it make?arrow_forward
- he records of Valium Company show a contribution margin ratio of 45%. The company desires to earn a profit of $36,000 and has fixed costs of $60,750. Determine the sales revenue that would have to be generated in order to earn the desired profit. 215,000 $340,000 $240,000 $106,250 $300,000arrow_forwardDetermine the profit and overhead markup for a company who wants to maintain a 13.2%% gross profit margin.arrow_forwardIf the contribution margin ratio for Peppa Company is 42%, sales were $2,500,000, and fixed costs were $590,000, what was the income from operations?arrow_forward
- A company has an utilization rate of 65%, which at the same time corresponds to their critical volume.The company's variable total costs are € 2,000,000 and the total gross margin € 800,000.a) Calculate the company's total fixed costs. b) Calculate the company's revenue. c) Calculate the company's results at 90% utilization rate.arrow_forwardImelda Company budgets sales of $1,800,000, fixed costs of $394,000, and variable costs of $1,116,000. What is the contribution margin ratio for Imelda Company?arrow_forwardA company with a break-even point at $900,000 in sales revenue had fixed costs of $175,000. When actual sales were $1,200,000, variable costs were $850,000. Determine (a) the margin of safety expressed in dollars, (b) the margin of safety expressed as a percentage of sales, (c) the contribution margin ratio, and (d) the operating income.arrow_forward
- If the contribution margin ratio for Harrison Company is 38 %, sales were $425,000, and fixed costs were $100,000, what was the income from operations? A) $163,500 B) $161,500 C) $54,730 61,500arrow_forwardCompany XYZ made total contribution margin of $200,000 and a net income of $150,000. The company also made a total gross margin of $210,000. Assume that the variable selling and administrative expenses were $40,000, how much is the fixed manufacturing cost ($)?arrow_forwardFarrow Company reports the following annual results. Contribution Margin Income Statement Sales (440,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin. Fixed costs Fixed overhead Fixed general and administrative Income Per Unit $15.00 2.00 4.00 2.50 6.50 2.00 1.50 $ 3.00 (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Required A Required B Annual Total $ 6,600,000. 880,000 1,760,000 1,100,000 2,860,000 The company receives a special offer for 44,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $176,000 and incremental fixed general and administrative costs of $189,000. 880,000 660,000 $ 1,320,000 Complete this question by entering your answers in the tabs below.arrow_forward
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Cost-Volume-Profit (CVP) Analysis and Break-Even Analysis Step-by-Step, by Mike Werner; Author: Accounting Step by Step;https://www.youtube.com/watch?v=D0MOfse9OWk;License: Standard Youtube License