Respuesta :
Number of canoes produced and sold:
Canoes 1 = 475 produced and sold
Canoes 2 = 625 produced and sold
Canoes 3 = 775 produced and sold
As we know that Variable cost per unit = variable cost / units produced.
Canoes 1 = 64600 / 475 = 136 per unit
Canoes 2 =64600 / 625= 103 per unit
Canoes 3 =64600 / 775= 83.35 per unit.
As we know that fixed cost per unit = Fixed cost / units produced
Canoes 1 = 148400 / 475 = 312.42 per unit
Canoes 2 = 148400 / 625 = 237.44 per unit
Canoes 3 = 148400 / 775 = 191.48 per unit.
As we know that Total cost per unit = variable cost per unit + fixed cost per unit
Canoes 1 = 136 +312.42 = 448.42 per unit
Canoes 2 = 103 +237.44 = 340.44 per unit
Canoes 3 = 83.35 + 191.48 = 274.83 per unit.
Sales price per unit = Sales / unit sold.
Canoes 1= 221330/475= 465.95 per unit
Canoes 2 =221330/625= 354.12 per unit
Canoes 3 =221330/775 = 285.58 per unit
As we know that contribution margin per unit = Sales price per unit - variable price per unit.
Canoes 1 = 465.95- 136= 329.95 per unit
Canoes 2 = 354.12 - 103 = 251.12 per unit
Canoes 3 = 285.58 - 83.35 = 202.23 per unit
As we know that contribution margin ratio = (sales per unit - variable per unit) / sales per unit.
Canoes 1 = (465.95- 136)/465.95= 0.70
Canoes 2 = (354.12 - 103)/354.12 = 0.70
Canoes 3 = (285.58 - 83.35)/285.58 = 0.61.
3. Contribution margin income statement.
Sales ( 660 * 335) = 221100
less: variable cost per unit (660 * 224.84) = (148394)
Contribution margin 72706
Answer:
1. Please refer to table (1) below
2. Contribution margin = $369
contribution margin ratio = 73.07%
3.Net income = $95, 140
please refer to income statement in point 3
Explanation:
1.
475 625 775
Total Costs: ($) ($) ($)
Variable Cost 64, 600 85, 000 105, 400
Fixed Cost 148, 400 148, 400 148, 400
Total cost 213, 000
Cost Per Unit
Variable Cost per unit 136 136 136
Fixed Cost per unit 312.42 237.44 191.48
Total cost per unit 448.42 373.44 327.48
2.
Amount ($) Per Unit
Sales 505
Less: variable cost 136
Contribution Margin 369
Contribution margin ratio (369 / 505) 73.07%
What is Contribution margin?
1. Contribution margin is the selling price minus all the variable costs associated with the product. The total contribution margin represents the amount of earnings that are available to pay for fixed costs after paying for variable costs.
What is Contribution margin ratio?
Contribution margin ratio is the difference between sales and variable costs expressed as a percentage. This is the contribution margin expressed as a percentage of sales.
3.
Amount ($)
Sales 333, 300 $505 x 660
Less: Variable costs 89, 760 $136 x 660
Contribution 243, 540
Less: Fixed Costs 148, 400
Net Income 95, 140
What is a contribution margin income statement?
A contribution margin income statement is an income statement in which all the variable expenses are deducted from sales to arrive at ac contribution margin. All fixed costs are deducted from the contribution margin to arrive at the net income profit or loss for the period.
This statement is useful for decision making because it helps in understanding the cost behavior by separating
