- If sales are $100,000, fixed expenses are $33,500, and the contribution margin is $40,000, then the net operating income must be:
- If the net operating income is $10,000, the gross margin is $40,000, and the cost of goods sold is $42,000, then the sales must be:
- If the cost of goods sold is $96,900, beginning merchandise inventory is $9,700, and merchandise purchases are $110,000, then the ending merchandise inventory must be:
- Assume the following information for a merchandising company:
| Number of units sold | 20,000 |
| Selling price per unit | $ 30.00 |
| Variable selling expense per unit | $ 3.40 |
| Variable administrative expense per unit | $ 2.40 |
| Fixed administrative expenses | $ 50,000 |
| Beginning merchandise inventory | $ 24,000 |
| Ending merchandise inventory | $ 19,000 |
| Merchandise purchases | $ 340,000 |
What is the contribution margin?
- A company’s relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows:
| Amount per Unit | |
| Direct materials | $ 9.25 |
| Direct labor | $ 6.25 |
| Variable manufacturing overhead | $ 1.50 |
| Fixed manufacturing overhead | $ 5.00 |
| Fixed selling expense | $ 3.50 |
| Fixed administrative expense | $ 2.00 |
| Sales commissions | $ 1.00 |
| Variable administrative expense | $ 0.50 |
What is the incremental cost incurred if the company increases production from 12,000 to 12,001 units?
- Assume the following information:
| Direct materials | $ 70,000 | |
| Direct labor | $ 43,000 | |
| Variable manufacturing overhead | $ 11,000 | |
| Fixed manufacturing overhead | 25,000 | |
| Total manufacturing overhead | $ 36,000 | |
| Variable selling expense | $ 15,000 | |
| Fixed selling expense | 20,000 | |
| Total selling expense | $ 35,000 | |
| Variable administrative expense | $ 8,000 | |
| Fixed administrative expense | 12,000 | |
| Total administrative expense | $ 20,000 |
What is the total product cost?
- Schwiesow Corporation has provided the following information:
| Cost per Unit | Cost per Period | |
| Direct materials | $ 7.40 | |
| Direct labor | $ 3.80 | |
| Variable manufacturing overhead | $ 1.80 | |
| Fixed manufacturing overhead | $ 16,000 | |
| Sales commissions | $ 1.00 | |
| Variable administrative expense | $ 0.50 | |
| Fixed selling and administrative expense | $ 5,600 |
If 7,500 units are produced, the total amount of manufacturing overhead cost is closest to:
- At a sales volume of 38,000 units, Choice Corporation’s sales commissions (a cost that is variable with respect to sales volume) total $752,400.
To the nearest whole dollar, what should be the total sales commissions at a sales volume of 34,300 units? (Assume that this sales volume is within the relevant range.)
Note: Round intermediate calculations to 2 decimal places.
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- Kogler Corporation’s relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
| Average Cost per Unit | |
| Direct materials | $ 5.15 |
| Direct labor | $ 5.30 |
| Variable manufacturing overhead | $ 1.95 |
| Fixed manufacturing overhead | $ 8.00 |
| Fixed selling expense | $ 3.75 |
| Fixed administrative expense | $ 1.40 |
| Sales commissions | $ 0.60 |
| Variable administrative expense | $ 0.55 |
If the selling price is $26.00 per unit, the contribution margin per unit sold is closest to:
- Bolka Corporation, a merchandising company, reported the following results for October:
| Sales | $ 500,000 |
| Cost of goods sold (all variable) | $ 170,700 |
| Total variable selling expense | $ 24,600 |
| Total fixed selling expense | $ 21,500 |
| Total variable administrative expense | $ 10,000 |
| Total fixed administrative expense | $ 34,900 |
The gross margin for October is: