Description
I kindly need your support to answer the following question Please, Thanks.
Submit as an excel document and show your work with formulas
Fill-in-the-Blank Equations
Fill-in-the-Blank Equations
1. __________ = Difference in Total Cost ÷ Difference in Units Produced
Variable Cost per Unit
2. Contribution Margin = Sales – __________
Variable Costs
3. Contribution Margin Ratio = __________ ÷ Sales
Contribution Margin
4. __________ = Fixed Costs ÷ Unit Contribution Margin
Break-Even Sales (units)
5. Sales (units) = (__________ + Target Profit) ÷ Unit Contribution Margin
Fixed Costs
6. Operating Leverage = Contribution Margin ÷ __________
Operating Income
7. Margin of Safety (percent of current sales) = (Sales – Sales at Break-Even Point) ÷__________
Sales
8. Margin of Safety (SAR) = Sales (SAR) – __________
Break-Even Sales (SAR)
9. The total cost of production for the last four quarters for Moore’s Mowers is as follows. Use the high-low method to determine the variable cost per unit and the fixed cost.
Total Cost Units Produced
Quarter 1 51,000 SAR 2,000
Quarter 2 56,400 SAR 2,300
Quarter 3 49,200 SAR 1,900
Quarter 4 53,700 SAR 2,150
Variable Cost = _____________18 SAR per unit
Fixed Cost = ____________ 15,000 SAR
10. During 2023, Caps by Huely sold 50,000 finished products with a contribution margin of 55%. The variable costs totaled 40,500 SAR for the year. Determine the sales, contribution margin, and unit contribution margin.
Sales = ____________ 90,000 SAR
Sales price per unit = ____________ 1.80 SAR
Variable cost per unit = ____________ (0.81)
Contribution margin per unit= ____________ 0.99 SAR
Contribution margin= ____________ 49,500 SAR
11. If a manufacturing company had a contribution margin of $65,700 for 20Y5 from selling 25,000 products at 6 SAR each, determine the variable cost per unit, contribution margin ratio, and unit contribution margin. Round unit answers to two decimal places and percentages to the nearest whole percent.
Sales (SAR) = ____________ $150,000
Contribution margin = ____________ (65,700)
Total variable cost= ____________ $ 84,300
Variable cost per unit= ____________ $3.37
Unit contribution margin= ____________ $2.63
Contribution margin ratio = ____________ 44%
12. Determine the change in operating income for each situation for a company that has an increase in total sales of $52,000.
a. Unit contribution margin of $4.50 and each product selling for $8.
= ____________$29,250
b. Contribution margin ratio of 24% and each product selling for $10.
= ____________$12,480
c. Unit contribution margin of $6, with total variable costs of $25,000 at $5 per unit.
= ____________$30,000
13. After incurring an operating loss of $(6,000) in 20Y5, the production manager would like to know the break-even point in sales and units for the company. During 2023, the company sold 6,000 at $3 each. Variable costs for the year totaled $10,800. Determine the sales and units sold that were needed to break even.
Sales = ____________200,000 SAR
Variable costs = ____________ (80,000)
Contribution margin = ____________120,000 SAR
Fixed costs= ____________ (50,400)
Operating income = ____________ 69,600 SAR
14. A tire manufacturer sells its finished goods for 80 SAR each. The variable cost to manufacture each product is 20 SAR, while fixed costs equal 20,700 SAR. In 2022, the company earned operating income of 32,100SAR. In 2023, the CEO would like to increase operating income by 5%. Determine the sales in dollars and units needed to achieve the CEO’s goal. Round answers to the nearest whole number.
Target Profit = ____________ 33,705SAR = 32,100SAR × 1.05
Sales (units) = ____________ 907 units = (20,700SAR + 33,705SAR) ÷ $60
Sales (dollars) = ____________ $72,540 = (20,700SAR + 33,705SAR) ÷ 75%, or 907 units × 80SAR per unit
Submit as an excel document for faculty grading.
*Due to rounding, the two methods will differ by $20 in sales.
15.Prepare a cost-volume-profit chart for a company that has an 80% contribution margin for goods that it sells for $150 each. The company’s fixed costs total $54,000. Also, determine the break-even point in units and sales.
Break-Even Point (units) = ____________ 450 units = $54,000 ÷ $120 per unit
Break-Even Point (sales) = ____________ $67,500 = $54,000 ÷ 80%, or 450 units × $150 per unit
CT_Rubric_100
Description
100 Points
Rubric Detail
Levels of Achievement
Criteria
Exceeds Expectation
Meets Expectation
Some Expectations
Unsatisfactory
Content
33 to 35 points
29 to 32 points
26 to 28 points
0 to 21 points
Demonstrates
substantial and
extensive knowledge of
the materials, with no
errors or major
omissions.
Demonstrates adequate
knowledge of the
materials; may include
some minor errors or
omissions.
Demonstrates fair knowledge
of the materials and/or
includes some major errors or
omissions.
Fails to demonstrate
knowledge of the
materials and/or
includes many major
errors or omissions.
33 to 35 points
29 to 32 points
26 to 28 points
0 to 21 points
Provides strong
thought, insight, and
analysis of concepts
and applications.
Provides adequate
thought, insight, and
analysis of concepts and
applications.
Provides poor though, insight,
and analysis of concepts and
applications.
Provides little or no
thought, insight, and
analysis of concepts
and applications.
15 to 15 points
13 to 14 points
11 to 12 points
0 to 10 points
Sources go above and
beyond required
criteria and are well
chosen to provide
effective substance and
perspectives on the
issue under
examination.
Sources meet required
criteria and are adequately
chosen to provide
substance and
perspectives on the issue
under examination.
Sources meet required criteria
but are poorly chosen to
provide substance and
perspectives on the issue
under examination.
Source selection and
integration of
knowledge from the
course is clearly
deficient.
15 to 15 points
13 to 14 points
11 to 12 points
0 to 10 points
Project is clearly
organized, well written,
and in proper format
as outlined in the
assignment. Strong
sentence and
paragraph structure,
contains no errors in
grammar, spelling, APA
style, or APA citations
and references.
Project is fairly well
organized and written and
is in proper format as
outlined in the
assignment. Reasonably
good sentence and
paragraph structure, may
include a few minor errors
in grammar, spelling, APA
style, or APA citations and
references.
Project is poorly organized
and written and may not
follow proper format as
outlined in the assignment.
Inconsistent to inadequate
sentence and paragraph
development, and/or includes
numerous or major errors in
grammar, spelling, APA style
or APA citations and
references.
Project is not
organized or well
written and is not in
proper format as
outlined in the
assignment. Poor
quality work;
unacceptable in
terms of grammar,
spelling, APA style,
and APA citations and
references.
Analysis
Sources
Demonstrates
college-level
proficiency in
organization,
grammar and
style.
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