Acc Chapter 21 Assignment

PR 21-1A

Cost Fixed Cost Variable Cost Mixed Cost

A X
B X
C X
D X
E X
F X
G X
H X
I X
J X
K X
L X
M X
N X
O X
P X
Q X
R X
S X
T X

Ex 21-23

a)

1. Margin of Safety = Actual Sales - Breakeven point = $1450,000-$1160,000= $290,000

2. ($290,000/ $1450,000) *100= 20%

b)

Contribution margin ratio = 100% - Variable cost ratio = 100% - 80% = 20%

Breakeven Sales = Fixed cost / Contribution margin ratio = $2500,000/ 20%= $12500,000

Actual Sales = Breakeven Sales / Breakeven sales to actual sales ratio

Actual Sales = $12500,000 / 80%

Actual Sales = $15,625,000

EX 21-21

a)

Contribution margin = Sales - Variable costs

For Bats = $95 - $55 = $40

For Gloves = $115 - $75 = $40

weighted average Contribution margin is

= ($40 × 60%) + ($40 × 40%)

= $24 + $16
= $40

Break-even = Fixed cost ÷ Contribution margin

= $712,000 ÷ $40

= 17,800 units

b) Bats= 60%*17,800= 10,680 units

Gloves= 40%*17,800= 7120 units

Ex 21-19

a) Break-even point

b) Operating loss area

c) Total fixed costs

d) Total costs line

e) Operating profit area

f) Total Sales line

Ex 21-13

a)

unit margin =750-600 = $150

Fixed cost =$2550,000
Break-even = 2550,000/150 = 17,000 units

b)

new break-even = 2550,000/200 = 12,750 units

Ex 21-11

a)

Break-even point in unit = Total fixed cost / Contribution margin

Total fixed cost = $12,600,000

Contribution margin per unit = Unit selling price - Unit variable cost

= $540 - $360

= $180

Break-even point in units = $12,600,000 / $180

= 70,000 units
b)

Break-even point + target profits = (total fixed costs + target profits) / Contribution margin

total fixed cost + target profit

= $12,600,000 + $810,000

= $13,410,000

Contribution margin per unit = Unit selling price - Unit variable cost

= $540 - $360

= $180

Break-even point + expected profits in unit

= $13,410,000 / $180

= 74,500 units
Ex 21-9

a)

Contribution margin ratio = contribution margin / sales

= (1800,000-1116,000)/ 1800,000 = 0.38

b)

Contribution margin ratio = contribution margin / sales

0.42 = contribution margin/ 2500,000

Contribution margin = $1050,000

Operating income = contribution margin - fixed costs = $1050,000- $590,000 = $460,000

Ex 21-7

a)

Variable cost per unit = Change in Total cost / Change in Units produced

High level
Total cost = $24,090,000
Units produced = 90,000

Low level
Total cost = $19,200,000
Units produced = 60,000

Variable cost per unit = (Total cost at high level - Total cost at low level) / (Units produced
at high level - Units produced at low level)

= ($24,090,000 - $19,200,000) / (90,000 - 60,000)

= $4,890,000 / 30,000

= $163 per unit

Total fixed cost = Total cost - Total variable cost

Total variable cost = Units produced at high level * Variable cost per unit
= 90,000 * $163 per unit

= $14,670,000

Total cost at high level = $24,090,000

Total fixed cost

= $24,090,000 - $14,670,000

= $9,420,000
b)

Estimated total cost = Total fixed cost + Total variable cost

= Total fixed cost + (Variable cost per unit * Number of units)

= $9,420,000 + ($163 * 86,000)

= $9,420,000 + $14,018,000

= $23,438,000

Ex 21-5

a) Variable

b) Variable

c) Fixed

d) Variable

e) Fixed

f) Fixed

g) Fixed

h) Fixed

i) Variable

j) Variable