13. Buerhrle\'s CVP income statement included sales of 3,000 units, a selling pr
ID: 2443373 • Letter: 1
Question
13. Buerhrle's CVP income statement included sales of 3,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $66,000. Contribution margin isA) $300,000.
B) $180,000.
C) $120,000.
D) $54,000.
16. Garland's CVP income statement included sales of 3,000 units, a selling price of $50, variable expenses of $30 per unit, and net income of $25,000. Fixed expenses are
A) $35,000.
B) $60,000.
C) $90,000.
D) $150,000.
17. Jack Company sells its product for $6,600 per unit. Variable costs per unit are: manufacturing, $3,600, and selling and administrative, $75. Fixed costs are: $18,000 manufacturing overhead, and $24,000 selling and administrative. There was no beginning inventory at 1/1/10. Production was 20 units per year in 2010–2012. Sales was 20 units in 2010, 16 units in 2011, and 24 units in 2012.
Reference: Ref 6-6
Income under variable costing for 2012 is
A) $19,800.
B) $23,400.
C) $24,600.
D) $28,200.
Explanation / Answer
13) Sales (3000 * $100)------------------$300,000 (-) VC (3000 * $60)------------------$180,000 ---------------------------------------------------- Contribution margin ------------------$120,000 ----------------------------------------------------- Therefore, the correct option is c) $120,000 16) Sales (3000 * $50)------------------$150,000 (-) VC (3000 * $30)------------------$90,000 ---------------------------------------------------- Contribution margin ------------------$60,000 But we know that Contribution margin - Fixed expenses = Net income $60,000 - FE = $25,000 FE = $35,000 Therefore, the correct option is A) $35,000 17) Calculating the income under variable costing income statement for 2012: Sales (24 units * $6,600)----------------------------------------$158,400 (-) VAriable expenses: Variable cost of goods manufactured (24 * $3600)---------------$86,400 Variable selling and administrative expenses(24 * $75)------------$1,800 --------------------------------------------------------------------------- Contribution margin ------------------------------------- $70,200 (-) Fixed expenses: Fixed manufacturing overhead --------------------------------$18,000 Fixed selling and administrative expenses -----------------------$24,000 --------------------------------------------------------------------------- Net income ---------------------------------------------------$28,200 Therefore, the correct option is D) $28,200 Sales (3000 * $50)------------------$150,000 (-) VC (3000 * $30)------------------$90,000 ---------------------------------------------------- Contribution margin ------------------$60,000 But we know that Contribution margin - Fixed expenses = Net income $60,000 - FE = $25,000 FE = $35,000 Therefore, the correct option is A) $35,000 17) Calculating the income under variable costing income statement for 2012: Sales (24 units * $6,600)----------------------------------------$158,400 (-) VAriable expenses: Variable cost of goods manufactured (24 * $3600)---------------$86,400 Variable selling and administrative expenses(24 * $75)------------$1,800 --------------------------------------------------------------------------- Contribution margin ------------------------------------- $70,200 (-) Fixed expenses: Fixed manufacturing overhead --------------------------------$18,000 Fixed selling and administrative expenses -----------------------$24,000 --------------------------------------------------------------------------- Net income ---------------------------------------------------$28,200 Therefore, the correct option is D) $28,200Related Questions
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