PU Accounting Wilson Company Cost Volume Profit Analysis Questions
Part A Wilson Company sells lawn ornaments (rocks) with university athletic logos.The selling price of each lawn ornament is $25.00.The variable costs associated with each lawn ornament are $15.00 and the fixed costs for the company are $100,000 per year.Ignore income taxes.RequiredBearcat Paws produces two sizes of Christmas Ornaments.The selling prices and variable costs are as follows: Small LargeSelling price per ornament $8.00 $20.00Variable cost per ornament 4.00 8.00The company sells three small Christmas ornaments for every large Christmas ornament.The contribution margin income statement for the year ended December 31, 2015 follows: Sales revenue $225,000Variable costs 90,000Contribution margin 135,000Fixed costs 75,000Profit $60,000Required
