Calculate the contribution margin per unit for year

Assignment Help Managerial Accounting
Reference no: EM132203296

Last year the shirts sold for $24.00 each, and variable costs were $11.40 per shirt. At this cost structure, the breakeven point was 20,000 shirts. However, the company actually earned $15,120 in net income.

This year, the company is increasing its price to $27.00 per shirt. Variable costs per shirt will increase by one-third, and fixed expenses will increase by $30,900. The tax rate will remain at 40%.

Contribution format income statement for last year.

Calculate the contribution margin per unit for this year

How many T-shirts must the company sell this year to break even?

How many T-shirts must the company sell this year in order to earn $28,980 in net income?

Reference no: EM132203296

Questions Cloud

Net cash flows from financing activities : Based solely on the above information, the net cash flows from financing activities for the year on the statement of cash flows would be:
Compute residual income for the division : Assume a target income of 15% of average invested assets. Compute residual income for the division?
What is the actual total direct labor cost : What is the actual total direct labor cost for the current period?
Show the ending balances for all accounts : Using the information in the entries, record the transactions in T-accounts for Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory
Calculate the contribution margin per unit for year : Calculate the contribution margin per unit for this year. How many T-shirts must the company sell this year to break even?
What overhead cost per unit will be allocated : What overhead cost per unit will be allocated to each product?
Summarize the accounting practices used by enron : Summarize the accounting practices used by Enron (the smartest Guys in town)? to boost earnings quarter by quarter.
How leadership impacts the organizational culture : Delta Pacific Case Study - Determine how leadership impacts the organizational culture during this change. Explanation of leadership behaviors
Statements prepared for external reporting purposes : Explain why financial statements prepared for external reporting purposes should not be used for management performance evaluation.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How managerial accounting helps managers improve performance

Describe the role of managerial accounting in contemporary business. Provide one specific, real-life example of how managerial accounting helps managers improve operational and financial performance.

  Decision makers use cash flow to evaluate a business

Cash flows from investing and financing activities are reported in the same manner under the indirect and direct methods of the statement of cash flows.

  Exploitation of labor and resources

What is meant by the concept of fair trade referencing to the exploitation of labor and resources?

  What is the value of etc according to mm with corporate tax

What is the value of ETC according to MM with corporate taxes?  What is ETC's value (rounded to the nearest 1000) according to MM (including personal taxes)?

  Prepare required journal entries to reflect the transactions

Prepare all required journal entries to reflect the transactions described. Indicate the type of fund in which the entries should be made.

  Discuss labor variances

Please discuss labor variances. Discuss the two labor variances that may occur, including how they are calculated. What are some reasons for either type of labor variance?

  What should marc say to kelly

What should Marc say to Kelly? The following discussion took place between Marc Bolli, the office manager, the office manager of Landmark Data Company, and a new accountant, Kelly Holt.

  Cash budget comprehensive following are the budgeted

Cash budget comprehensive Following are the budgeted income statements for the second quarter of 2013 for SeaTech, Inc.:

  Prepare a journal entries for each transaction

Considering your result? Which method gives the best picture of the true earning of Jack catering? Why

  Compute cost of goods sold for each of these two companies

1.Compute cost of goods sold for each of these two companies for the year ended December 31,2013.

  You have just been hired as a management trainee by cravat

you have just been hired as a management trainee by cravat sales company a nationwide distributor of a designers silk

  What qualitative factors should be considered

What will be the effect on company prot related to accepting the Northwood Industries job? What qualitative factors should be considered in the decision whether to accept the job ornot?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd