ACCOUNTING 5301-Variable Cost Ratio, Contribution Margin Ratio

by | Mar 18, 2020 | Uncategorized

  

Variable Cost Ratio, Contribution Margin Ratio
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is $20,000 and fixed selling and administrative expense is $29,500.

Required: Be sure to read the instructions on each panel for additional guidance.
1. Calculate the variable cost ratio.
2. Calculate the contribution margin ratio.

Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin.

Refer to the list below for the exact wording of text items within your income statement.

Amount Descriptions In CengageNOW, an Amount Description is a text entry other than an Account that has an amount associated with it.
Operating income
Operating loss
Sales
Total contribution margin
Total fixed expense

Total variable expense
  

Why work with us?

Authenticity:

All of our papers are authentic, as each paper of ours is composed according to your unique requirements. Confidentiality: We value you data. Our company is extremely efficient in guarding the privacy of our clients. 100% Money Back Guarantee: In the event you cancel your order, you get your money back as soon as possible, we give a 100% refund. 24/7 Support: Our team members are available via email, live chat, and phone. Revision Policy: You can apply for a revision if you think your paper could be better. In this case, your paper will be revised either by the specialist assigned to you or by another writer.

How the Platform Works

  • Click on 'Place Your Order' tab on the menu or click on 'Order Now' tab at the bottom and a new order page will appear
  • Fill in your requirements depending on your needs under the 'PAPER DETAILS' area
  • In the next section, fill in the academic level, required number of pages, paper deadline as provided in the drop-down menus.
  • To enter your registration details, click on 'CREATE ACCOUNT & SIGN IN'. This step allows you to create an account with us for purposes of record-keeping. Click on 'PROCEED TO CHECK OUT' at the bottom of the page
  • The next section requires you to fill in the payment details. Follow the guided process and soon your order will be available for our team to work on.