Bus 630 Week 1

Topics: Variable cost, Contribution margin, Costs Pages: 3 (393 words) Published: June 24, 2013
(1)Estimated contribution margins for the next fiscal quarter (000s omitted):

ComputerPlace Poster
PaperNapkinsMatsBoardTotal
Number of units30 120 45 80 275
Sales$420$840$540$680$2,480
Cost of goods sold:
Variable costs 225 612 270 360 1,467
Contribution margin$195$228$270$320$1,013

Unit revenue and costs information:

ComputerPlacePoster
PaperNapkinsMatsBoard
Selling price$14.00$ 7.00$12.00$ 8.50
Materials$ 6.00$ 4.50$ 3.60$ 2.50
Variable factory overhead 1.50 .60 2.40 2.00
Unit variable cost$ 7.50$ 5.10$ 6.00$ 4.50
Contribution margin per unit$ 6.50$ 1.90$ 6.00$ 4.00

(2)Revised contribution margins:

ComputerPlacePoster
PaperNapkinsMatsBoardTotal
Number of units 35 120 45 80 280
Sales$490.00$840$540$680$2,550.00
Cost of goods sold:
Variable costs 297.50 612 288 360 1,557.50
Contribution margin$192.50$228$252$320$ 992.50

Unit revenue and costs information:

ComputerPlacePoster
PaperNapkinsMatsBoard
Selling price$14.00$ 7.00$12.00$ 8.50
Materials$ 7.00$ 4.50$ 4.00$ 2.50
Variable factory overhead 1.50 .60 2.40 2.00
Unit variable cost$ 8.50$ 5.10$ 6.40$ 4.50
Contribution margin per unit$ 5.50$ 1.90$ 5.60$ 4.00
(3) (a) Breakeven point:

$1,013,000 contribution margin 275,000 units = $3.684 contribution margin per unit

$1,013,000 contribution margin $2,480,000 sales = 40.8% contribution margin ratio

($420,000 + $118,000 fixed costs) $3.684...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Bus 630 Week 1 Discussion Essay
  • Bus 630 Week 2 Assignment Essay
  • Bus 630 Week One Assignment Essay
  • Bus 630 Week 4 Essay
  • Bus 630 Week 4 Essay
  • Essay on BUS 352 Week 1 to 5 (E-Business)
  • BUS 475 Week 1 Knowledge Check Research Paper
  • BUS 610 week 1 Essay

Become a StudyMode Member

Sign Up - It's Free