Ludington Corporation provides the following data from a recent period for its manufacture of shoes: direct material costs, $24,000; direct labor costs, $12,000; and total fixed costs, $40,000. Sales were $60,000 based on 12,000 units sold during the period. Calculate the contribution margin and the contribution margin ratio.
What will be an ideal response?
| Contribution Margin | ? | ? |
| Sales………………………………… | $60,000 | Contribution Margin/Sales =CM% |
| Less Variable Costs: | ? | $24,000/$60,000 = 40% |
| Direct materials…………………… | $24,000 | ? |
| Direct labor……………………… | 12,000 | ? |
| Total variable costs……………… | $36,000 | ? |
| Contribution Margin………………… | $24,000 | ? |
You might also like to view...
Payment is made for an electric bill which was received and recorded earlier. For this transaction, identify the effect on the accounting equation
a. Assets increase and liabilities increase. b. Assets increase and stockholders' equity increases. c. Liabilities increase and stockholders' equity decreases. d. Liabilities decrease and assets decrease.
The English philosopher John Locke viewed a newborn child as a "tabula rasa", or a(n) ________.
A. bundle of joy B. finished product C. blank tablet D. empty vessel
ABC Company has been growing at a 10% rate, and it just paid a dividend of Do= $3.00. Due to a new product, ABC expects to achieve a dramatic increase in its short-run growth rate, to 20% annually for the next 2 years
After this time growth is expected to return to the long-run constant rate of 10%. The company's beta is 2.0, the required return on an average stock is 11%, and the risk free rate is 7%. What should the dividend yield (D1/Po) be today? (Round to the nearest whole percent.) A) 4% B) 5% C) 10% D) 8% E) 2%
The scholars of jurisprudence generally agree on the theory of law
Indicate whether the statement is true or false