Managerial Accounting Contribution Margin Homework Help
- July 24, 2017
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- Category: Accounting QA
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1.What is the difference between Gross Margin and Contribution Margin.
2.What is the contribution Margin ratio.
3.Is contribution Margin the same as Operating Income.
4.Hunt Corporation manufactures products that have variable costs of $6 per unit. Its fixed cost amounts to $75,000. It sells the produce for $9 each. Use the per unit contribution margin approach to determine the break-even point in units and dollars.
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5.Information concerning a product produced by Morris Company appears here.
Sales price per unit: $200
Variable cost per unit: $110
Total annual fixed manufacturing and operating costs: $630,000
Required
Determine the following.
a. Contribution margin per unit.
b. Number of units that Morris must sell to break even.
c. Sales level in units that Morris must reach to earn a profit of $270,000
Product Code: ACC115
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