Joe’s Tabletops produces fine tabletops.
Question # 00412911
Posted By:
Updated on: 10/24/2016 11:49 PM Due on: 10/25/2016
Joe’s Tabletops
Joe’s Tabletops produces fine tabletops. The company's income statements for two month during
the last year are given below: Units sold
Sales
Cost of goods sold
Gross margin
Selling & administrative expense
Net operating income April
5,000
$8,000,000
5,500,000
2,500,000
1,500,000
$1,000,000 July
7,000
$11,200,000
7,100,000
4,100,000
1,900,000
$ 2,200,000 The company has no beginning or ending inventories.
Required:
1) Estimate the company's total variable cost per unit and its total fixed costs per year.
2) Compute the company's contribution margin for July.
Joe’s Tabletops produces fine tabletops. The company's income statements for two month during
the last year are given below: Units sold
Sales
Cost of goods sold
Gross margin
Selling & administrative expense
Net operating income April
5,000
$8,000,000
5,500,000
2,500,000
1,500,000
$1,000,000 July
7,000
$11,200,000
7,100,000
4,100,000
1,900,000
$ 2,200,000 The company has no beginning or ending inventories.
Required:
1) Estimate the company's total variable cost per unit and its total fixed costs per year.
2) Compute the company's contribution margin for July.
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Rating:
/5
Solution: Joe’s Tabletops produces fine tabletops.