(Solved Homework): Columbia Products produced and sold 1,400 units of the company’s only product in March. You have coll…

Columbia Products produced and sold 1,400 units of the company’s only product in March. You have collected the following information from the accounting records:

Sales price (per unit) $ 129
Manufacturing costs:
Fixed overhead (for the month) 16,800
Direct labor (per unit) 7
Direct materials (per unit) 31
Variable overhead (per unit) 26
Marketing and administrative costs:
Fixed costs (for the month) 22,400
Variable costs (per unit) 4

 

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Required:

a. Compute the following:

 

Expert Answer

 

Dear Student – You have not specified reqmt. I think you require net income as that can be computed from the information
Statementshowing Computations
Paticulars Amount
Sales Revenue = 1400*129             180,600.00
Variable Costs:
Direct Labour = 1400*7                  9,800.00
Direct Materials = 1400*31                43,400.00
Variable Overhead                36,400.00
Total Variable costs                89,600.00
Contribution = Sales – VC                91,000.00
Fixed Costs:
Fixed Overhead                16,800.00
Fixed marketing and admin costs                22,400.00
Total Fixed costs                39,200.00
Income = Cont – FC                51,800.00
CM Ratio = 91000/180600 50.39%

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