March 70000 188000 Apri 90000 260000 a. $2.89 b. $2.5 c. $3.2 d. Cannot be deter
ID: 2564641 • Letter: M
Question
March 70000 188000 Apri 90000 260000 a. $2.89 b. $2.5 c. $3.2 d. Cannot be determined from the information given. 23. Ponszko Nursery used high Additional information follows: -low data from June and July to determine its variable cost of $12 per unit. Month Units produced Total costs une July 2000 1000 $32000 20000 ir Ponszko's produces 2300 units in August, how much is its total cost expected to be? a. $35600 b. $43600 C. $8000 d. $27600 24. Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive requires $13 of variable costs to make. During April, 1000 drives were sold. Fixed costs for April were $1000. How much is the contribution margin ratio? a. 25% b. 75% c. 65% d. 35% costs mi a company had a contribution margin of $1000 and a contribution margin ratio of 40% total arable must have been a. $400000. b. $1500000. C. $600000. d. $2500000.Explanation / Answer
23. Variable cost per unit = 12
Units produced in June = 2,000
Variable costs = 2,00 units * 12 per unit = 24,000
Total costs = 32,000
Fixed costs = Total costs - Variable costs
= 32,000 - 24,000 = 8,000
Total costs at 2,300 units in August = Variable costs + Fixed costs
= (2,300 *12) + 8,000 = 35,600
The answer is A.
24. Selling price per unit = 20
Variable cost per unit = 13
Contributioin margin per unit = Selling price per unit - Variable cost per unit
= 20 - 13 = 7
Contribution margin ratio = contribution margin per unit / Selling price per unit
= 7 / 20 = 35%
The answer is D.
25. Contribution margin = 1,000,000
Contribution margin ratio = 40%
Contribution margin ratio = Contribution margin / Sales
Sales = Contribution margin / Contribution margin ratio
= 1,000,000 / 40% = 2,500,000
Contribution margin ratio + Variable costs ratio = 1
Variable costs ratio = 1 - Contribution margin ratio
= 1 - 0.4 = 0.6
Variable costs = 2,500,000 * 0.6 = 1,500,000.
The answer is B.