A firm makes and sells a single product. Monthly fixed expenses (answer attached)

Problem 21 - A firm makes and sells a single product. Monthly fixed expenses are $19,500, monthly unit sales are 3,000, and the unit contribution margin is $20. How much is monthly net profit?

Problem 22 - A company with a single product has a contribution margin rate of 24%. Total units sold for 2004 was 100. If total fixed costs are $84,000, what is the company's sales volume in dollars at break-even?

Problem 23- At the break-even point of 1,125 units, variable costs are $67,500, and fixed costs are $22,500. How much is the selling price per unit?

Problem 24 - Schwan, Inc. is a nonprofit organization that captures alligators from residential ponds and releases them in a remote habitat. Fixed costs are $20,000. The cost of capturing each gator is $40.00 each. Schwan is funded by a local philanthropy in the amount of $48,000 for 2003. How many gators can Schwan capture during 2003 under its current funding?

Problem 25 - Uli Company sells homework machines for $100 each. Variable costs per unit are $75 and total fixed costs are $8,000. Uli is considering the purchase of new equipment that would increase fixed costs by$5,000, but decrease the variable costs per unit to $55. Uli Company expects to sell 300 units next year. How much profit or loss will Uli make if it purchases the new equipment and sales increase as expected?

Problem 26 - Greenfield Corporation sells calculators at a price of $30 per unit. Variable cost per unit is $10 and fixed costs total $24,000. If sales are expected to be 1,650 units, how much is Greenfield’s margin of safety?

Problem 27 - f a company’s contribution margin per unit is $10, its fixed costs are $20,000, and it produces 40 units per day, how many days will it take for the company to break even?

Problem 28 - Grate Corporation’s product has a selling price of $15 and a per-unit variable cost of $8. Its fixed costs are $14,000. How many units must the company sell to earn a profit of $35,000?

Problem 29 - The unit selling price is $500, the unit variable cost is $200, and the total monthly fixed costs are $300,000, then how much is the contribution margin ratio?

Problem 30 - If sales are $900,000, variable costs are 60% of sales, and operating income is $200,000, how much is the contribution margin ratio?

Problem 31 -  If fixed costs are $300,000, the unit selling price is $20, and the unit variable costs are $15, what is the break-even sales (units) if fixed costs are reduced by $80,000?

Problem 32 - The following is Tyler Corporation's contribution income statement for last month:

The company has no beginning or ending inventories. What is the company’s margin of safety?

Problem 33 - Donald, Inc.’s variable costs are 35% of sales. Martin is contemplating an advertising campaign that will cost $25,000. If sales are expected to increase $75,000, by how much will the company's income increase?

Problem 34 - If a company has a contribution margin percentage of 30%, fixed costs of $100,000, and it expects sales to increase by $200,000 next year, how much will the contribution margin increase?     

Problem 35 - A division sold 200,000 games during 2003. (Course CD)

If 100 more games are sold, how much will profit increase?

Problem 36 -Zweig Company produces paint brushes, which it sells for $8 each. Each brush costs $2 to make. During March, 3,000 brushes were sold. Fixed costs for March were $1 per unit for a total of $3,000 for the month.  

A. How much is the contribution margin ratio for Zweig Company?

B. How much is the monthly break-even level of sales in dollars for Zweig?

C.  How much does Zweig’s operating income increase for each $1,000 increase in revenue per month?  

D.  If variable costs decrease by 20%, and fixed costs increase by 20%, what happens to the break-even level of units per month for Zweig?

Problem 37 -Binninger Ruler produces three models: Model A has sales of 1,000 rulers with a contribution margin of $0.20 each; Model B has sales of 2,000 rulers with a contribution margin of $0.30 each; Model C has sales of 3,000 rulers with a contribution margin of $0.10. If sales of Model B pen increase by 600 units, what will be the effect on profit?

Problem 38 -Sona Theater’s fixed costs are $20,000 per year. Its concession stand sells a bucket of popcorn with a contribution margin of 32%. How much sales dollars does Sona need to break-even per year if popcorn is its only product?      

Problem 39 - Tarjee, Inc. prepared the following concerning its 3 products.

How much is the weighted average contribution margin ratio?

Problem 40 -Cato Company provided the following information: Sales, $15,000; Variable product costs, $3,000; variable operating expenses, $2,000; fixed product costs, $2,500; and fixed operating expenses, $1,500.

A.  How much is gross margin?     

B. How much is contribution margin?