CBAD 202 Exam 3 questions with
complete solutions graded A+
The contribution margin ratio explains the percentage of each sales dollar that - correct answer
✔✔contributes towards fixed costs and generating a profit.
Dairy Days Ice Cream sells ice cream cones for $6 per customer. Variable costs are $1 per cone. Fixed
costs are $2900 per month. What is Dairy Days' contribution margin ratio? - correct answer ✔✔83%
Dairy Days Ice Cream sells ice cream cones for $6 per customer. Variable costs are $5 per cone. Fixed
costs are $2200 per month. What is Dairy Days' contribution margin per ice cream cone? - correct
answer ✔✔$1.00
Sweet Treats sells ice cream cones for $6.00 per customer. Variable costs are $1.75 per cone. Fixed costs
are $3400 per month. What is the company's contribution margin per ice cream cone? - correct answer
✔✔$4.25
Stallard Corporation gathered the following information for the year just ended:
Fixed costs:Manufacturing $120,000Marketing 37,000
Administrative 22,000
Variable costs:Manufacturing$35,000
Marketing 6000
Administrative34,000
During the year, Stallard produced and sold 70,000 units of product at a selling price of $4.60 per unit.
There was no beginning inventory of product at the start of the year.
What is the contribution margin for the year? - correct answer ✔✔$247,000
Marie's Magic Shoppe provides the following information about its single product.
, Targeted operating income $36,000Selling price per unit$27.01
Variable costs per unit$12.00
Total fixed costs$75,000
What is the contribution margin ratio? - correct answer ✔✔56%
To find the number of units that need to be sold in order to breakeven or generate a target profit, the
formula used is - correct answer ✔✔(fixed expenses + operating income) ÷ contribution margin per unit.
The following information pertains to the Flying Fig Corporation:
Total Units for information given 4000
Fixed Cost per Unit$150
Selling Price per Unit$325
Variable Costs per Unit$225
Target Operating Income$150,000
What is the breakeven in units? (Round your final calculation to the nearest unit.) - correct answer
✔✔6000 units
The following information pertains to the Flying Fig Corporation:
Total Units for information given7000Fixed Cost per Unit$50
Selling Price per Unit$450
Variable Costs per Unit$200
Target Operating Income$150,000
What is the breakeven in sales dollars? (Round any intermediary calculations and your final answer to
the nearest whole number.) - correct answer ✔✔$630,000
complete solutions graded A+
The contribution margin ratio explains the percentage of each sales dollar that - correct answer
✔✔contributes towards fixed costs and generating a profit.
Dairy Days Ice Cream sells ice cream cones for $6 per customer. Variable costs are $1 per cone. Fixed
costs are $2900 per month. What is Dairy Days' contribution margin ratio? - correct answer ✔✔83%
Dairy Days Ice Cream sells ice cream cones for $6 per customer. Variable costs are $5 per cone. Fixed
costs are $2200 per month. What is Dairy Days' contribution margin per ice cream cone? - correct
answer ✔✔$1.00
Sweet Treats sells ice cream cones for $6.00 per customer. Variable costs are $1.75 per cone. Fixed costs
are $3400 per month. What is the company's contribution margin per ice cream cone? - correct answer
✔✔$4.25
Stallard Corporation gathered the following information for the year just ended:
Fixed costs:Manufacturing $120,000Marketing 37,000
Administrative 22,000
Variable costs:Manufacturing$35,000
Marketing 6000
Administrative34,000
During the year, Stallard produced and sold 70,000 units of product at a selling price of $4.60 per unit.
There was no beginning inventory of product at the start of the year.
What is the contribution margin for the year? - correct answer ✔✔$247,000
Marie's Magic Shoppe provides the following information about its single product.
, Targeted operating income $36,000Selling price per unit$27.01
Variable costs per unit$12.00
Total fixed costs$75,000
What is the contribution margin ratio? - correct answer ✔✔56%
To find the number of units that need to be sold in order to breakeven or generate a target profit, the
formula used is - correct answer ✔✔(fixed expenses + operating income) ÷ contribution margin per unit.
The following information pertains to the Flying Fig Corporation:
Total Units for information given 4000
Fixed Cost per Unit$150
Selling Price per Unit$325
Variable Costs per Unit$225
Target Operating Income$150,000
What is the breakeven in units? (Round your final calculation to the nearest unit.) - correct answer
✔✔6000 units
The following information pertains to the Flying Fig Corporation:
Total Units for information given7000Fixed Cost per Unit$50
Selling Price per Unit$450
Variable Costs per Unit$200
Target Operating Income$150,000
What is the breakeven in sales dollars? (Round any intermediary calculations and your final answer to
the nearest whole number.) - correct answer ✔✔$630,000
