11. Gonyo Inc., which produces and sells a single product, has provided the foll
ID: 2598609 • Letter: 1
Question
11. Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:
12. The contribution margin ratio of Donath Corporation's only product is 60%. The company's monthly fixed expense is $456,600 and the company's monthly target profit is $42,600.
Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest dollar amount.)
Redo the company's contribution format income statement assuming that the company sells 5,700 units.
13. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
The total gross margin for the month under absorption costing is:
$70,720
$17,680
$117,380
$128,18
14. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Variable costs per unit:
Fixed costs:
What is the variable costing unit product cost for the month?
$146 per unit
$167 per unit
$129 per unit
$137 per unit
11. Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:
Explanation / Answer
11.) Redo the company's c. ontribution Format income Statement for 5700 Units :
Note:1) Selling Price per unit=Total Sales Price/Total Units
= 297000/5500
= $ 54
Note 2) Variable Exp per Unit = 165000/5500
= $30
12) Target Profit of Donath Corporation is $ 42600
Total fixed cost of Month =$456600
Contribution =Fixed Cost + Profit
=456600+42600
=$499200
Contribution Margin ratio is 60%
Target Monthly Sales of Company
= Total contribution/Contribution Margin Ratio
= 499200/60%
= $832000
13.) Total Gross Margin =
Sales Revenue - Cost of Goods Sold
Fixed Manufacturing overhead per unit =
Total overhead / Units Produce
= 96940/2620
= $37
Cost of Goods Sold =
Direct Material Cost 49
Direct Labour Cost + 21
Variable Manufacturing Overhead + 12
Fixed Manufacturing Overhead + 37
= $119
Now, Total Gross Margin = 2210*151 - 2210*119
= 333710 - 262990
= $70720
14.) Unit Product Cost Under Variable Costing :
Direct Material 54
Direct Labour + 56
Variable Manufacturing overhead + 19
= $129 per Unit
(A) Sales (5700 units * $54) $307800 (B) Variable Expense( 5700*30) $171000 (C) Contribution Margin (A-B) $136800 (D) Fixed Expense $105300 (E) Net Operating Income (C-D) $31500Related Questions
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