Easy work to do

ACCT 224/344 – Homework Ch 12 Part 2
Name __________________________________________
1) A company has the following costs behavior patterns each month:
Fixed Costs:
CEO’s salary
RE Taxes
Office Supplies
Insurance
$13,000
$2,500
$200
$1,300
Variable Costs:
Raw matrials
Manufacturing labor
Shipping & handling
$45/unit
$30/unit
$15/unit
Mixed Costs:
Factory utilities
$500 per month + $15/unit
A) Compute the overall (total) cost formula.
B) Calcualte the total cost for a month with 2,800 units of activity.
C) Calculate the total cost for a month with 3,250 units of activity.
D) Calculate the total cost for a month with 3,600 units of activity.
2) If the # of units produced and sold were 500, calculate the missing amounts:
PER UNIT INFO
TOTAL INFO
Selling price per unit
Variable price per unit
$50
$35
Sales
Variable Costs
Contribution margin per unit
?
Contribution Margin
Fixed Expenses
Contribution margin ratio %
?
?
?
Operating Income
$
?
5,000
?
3) If the # of units produced and sold were 750, calculate the missing amounts:
PER UNIT INFO
TOTAL INFO
Selling price per unit
Variable price per unit
?
?
Sales
Variable Costs
$ 750,000
$ 525,000
Contribution margin per unit
?
Contribution Margin
Fixed Expenses
?
?
Contribution margin ratio %
?
Operating Income
$ 125,000
4) Below (left) is a company’s traditional income statement. Convert this into a contribution margin
format income statement (right) using the below info:
Sales
COGS
$ 5,000,000 Sales
$ 3,000,000 Variable Expenses
?
?
Gross Margin
Operating Expenses
?
Contribution Margin
$ 1,200,000 Fixed Expenses
?
?
Operating Income
?
Operating Income
?
Total expenses =
Gross Margin Ratio =
?
?
Total expenses =
Contribution Margin Ratio =
?
45%
5) Below (left) is a company’s traditional income statement. Convert this into a contribution margin
format income statement (right) using the below info:
Sales
COGS
$ 2,500,000 Sales
?
Variable Expenses
?
?
Gross Margin
Operating Expenses
?
Contribution Margin
$ 1,300,000 Fixed Expenses
?
?
Operating Income
?
Operating Income
?
Total expenses =
Gross Margin Ratio =
?
40%
Total expenses =
Contribution Margin Ratio =
?
?
100%