152. Materials Corporation sold 12,000 units of its product at a price of $67 per unit. Total variable cost per unit is $54.94, consisting of $45.05 in variable production cost and $9.89 in variable selling and administrative cost. Compute the contribution margin for the company.
153. Countdown Inc. sold 17,000 units of its product at a price of $81 per unit. Total variable cost per unit is $72.09, consisting of $69.05 in variable production cost and $3.04 in variable selling and administrative cost. Compute the contribution margin for the company.
154. Heather, Incorporated reports the following annual cost data for its single product:
Normal production and sales level
|
60,000 units
|
Direct materials
|
$9.00 per unit
|
Direct labor
|
$6.50 per unit
|
Variable overhead
|
$11.00 per unit
|
Fixed overhead
|
$720,000 in total
|
This product is normally sold for $56 per unit. If Heather increases its production to 80,000 units while sales remain at the current 60,000 unit level, by how much would the company’s gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production.
155. Dataport Company reports the following annual cost data for its single product:
Normal production and sales level
|
89,000 units
|
Direct materials
|
$14.00 per unit
|
Direct labor
|
$21.00 per unit
|
Variable overhead
|
$27.00 per unit
|
Fixed overhead
|
$3,738,000 in total
|
This product is normally sold for $230 per unit. If Dataport increases its production to 100,000 units, while sales remain at the current 89,000 unit level, by how much would the company’s gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production.
156. Assume that the following information is available for Coldwrap, Inc.:
|
Light-weight Down Comforter
|
Medium-weight
Down Comforter
|
Heavy-weight Down Comforter
|
Sales
|
$525,000
|
$262,500
|
$660,000
|
Variable expenses
|
|
|
|
Variable production
|
$105,000
|
$28,875
|
$135,000
|
Variable advertising
|
$15,750
|
$5,250
|
$33,000
|
Variable shipping
|
$18,000
|
$21,000
|
$42,000
|
Compute contribution margin ratio for each product line.