User Account

All Pages

Calculating the contribution margin

Assignment Help Managerial Accounting
Reference no: EM132818275

Problem - Your friend Jeff just started his new business manufacturing and selling camping survival kits. For Jeff this was a life-long dream. Jeff expects to produce and sell 500 units next month. You, the management accounting guru has assembled the following Data on costs involved in the process below:

Sales Price

15

 

 

Variable Manufacturing Costs

3

Fixed Manufacturing Costs

4,000

Variable Selling Costs

0.5

Fixed Selling Costs

500

Jeff needs your help in

1. Calculating the contribution margin (Per Unit & in Dollars).

2. Will Jeff be profitable at 500 units".

3. If Jeff decided not to produce and close down the shop, what will be his actual loss?

Reference no: EM132818275

Questions Cloud

Define the success strategies in the studies : The purpose of this essay is to define the success strategies, in the studies, that you will use for years to come. Demonstrate the writer's careful.
What does the market believe will be the stock price : The stock currently sells for $25 a share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years
How strategies would support english language development : Develop four strategies that Mrs. Perkins could integrate within her plant lesson plan to develop skills in all four language and literacy domains.
Find what is the value per share of boehm stock : Boehm Incorporated is expected to pay a $1.50 per share. The required rate of return on the stock , rs, is 15%. What is the value per share of Boehm's stock?
Calculating the contribution margin : Your friend Jeff just started his new business manufacturing and selling camping survival kits. Calculating the contribution margin
Determine the maximum cca deduction that can be taken : Determine the maximum CCA deduction that can be taken for 2020. Ms. Linda Smith acquires a residential property in July, 2020 at a total cost of $315000.
What the npv for a discount rate of fifteen percent is : The NPV for a discount rate of 15% is $ (million)? The NPV for a discount rate of 20% is $ (million)? The NPV for a discount rate of 30% is $ (million)?
What influenced your choices and decisions : What influenced your choices and decisions? How does your ideal reflect your upbringing, including both family and cultural influences?
What was the total cost per unit in february : What was their total cost per unit in February? Alawai Golf Equipment have fixed costs of $35,000 their variable cost per unit is $15 and their sales price $50.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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