1. Terrace Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the contribution margin per unit.

2. Terrace Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the contribution margin ratio.

3. Terrace Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the break-even point in units.

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1. Terrace Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the contribution margin per unit.

Selling price - variable costs = CM
480 - 300 = 180 per unit.

2. Terrace Company manufactures and sells a single ...

Solution Summary

This solution shows the student how to calculate the contribution margin, the contribution margin ratio and the break even units based on the fact patterns given. Additional resources are also provided for additional student understanding of the subject matter.

Calculate the unknowns for the following situations based on the given data:
Actual total sales revenue $300,000
Total fixed cost 75,000
Unit variable costs 15
Contribution ratio 40%
CALCULATE THE FOLLOWING:
a) unit selling price
b) unitcontributionmargin
c) break eve

See the attached file for the information necessary to answer the following questions:
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I am having a problem calculatingContributionMargin & Contribution Ratio using standard formulas for Bentley Hotel. Please help! I have attached some income statements and other materials to reference. Thank you!

Darth Company sells three products. Sales and contributionmargin ratios for the three products follow:
Product
X Y Z
Sales in dollars 16,200 44,600 99,450
ContributionMargin

I have a multiple choice problem I need help with:
Sutton Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for April were $2 perunit for a total of $2,000 for the month. How much is the contribution

The snowboard sells for $180.
a) What is the unitcontributionmarginper snowboard?
b) What is the breakeven point in units?
c) Explain what the contributionmargin is, and why it is useful information for Elizabeth.
Please refer to attachment.

The Landes Excavating Company experienced the following costs in 2007: Direct materials $1.75/unit Direct labor $2.00/unit Variable manufacturing overhead $2.50/unit Variable selling $.75/unit Fixed manufacturing overhead $50,000 Fixed selling $15,000 Fixed administrative $5,000 During the year the company manufactured 100,000 u

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Sales...$357,000
Variable expenses...$255,000
Contributionmargin...$102,000
Fixed expenses...$68,000
Net Income...$34,000
Given this data, the unitcontributionmargin was:

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Sales (26,000 units) 650,000
Less: Variable expenses 442,000
Contributionmargin 208,000
Less: Fixed expenses 234,000
Net operating loss (26,000)
Reference: 6-3
The unitcontributionmargin is:

Sales ( 30,000 caps @ $50)- 1,500,000
Less vairable expenses- 900000
contributionmargin- 600000
less fixed expenses- 280000
net income- 320000
Find the contributionmargin and the break even point in both units and dollars.