Problem
Pretty Pictures Co. has a monthly target operating income of $6,600. Variable expenses are 60% of sales and monthly fixed expenses are $1,960. What is the company's operating leverage factor at the target level of operating income?
The Swiss Group produces a single product selling for $10 per unit. Variable costs are $8 per unit and total fixed costs are $7,000. What is the contribution margin ratio?
Bazzar Inc. has fixed costs of $640,000 when it produces 300,000 units. Its total variable costs are $150,000. When Bazzar Inc. produces 480,000 units, its variable cost per unit will be
Frozen Treats has 2,600 quarts of ice cream in WIP Inventory, with all materials already added. The ice cream is 74% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?
Future Enterprises is trying to predict the cost associated with producing its telescopes. At a production level of 5,400 telescopes, Future Enterprises' average cost per telescope is $57. If $19,000 of the costs are fixed, and the plant manager uses the cost equation to predict total costs, her forecast for 6,000 telescopes will be ________.
It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8.00 apiece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $13,000 a month rent for his factory and store, and also pays $79,000 a month to his staff in addition to the commissions. Homer sold 72,500 baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his contribution margin?