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Answer the Following Questions Using the Information Below:
Capity Tea

question 10

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Answer the following questions using the information below:
Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
 Actual  Budget  Calamine  Capity  Calamine  Capity  Sales in pounds 3,740lbs.3,960lbs.4,400lbs.3,300lbs Price per pound $2.80$2.80$2.00$3.00 Variable cost per pound 1.002.001.001.50 Contribution margin $1.80$0.80$1.00$1.50\begin{array}{lrrrr} &\text { Actual }&&\text { Budget }\\& \text { Calamine } & \text { Capity } & \text { Calamine } & \text { Capity } \\\text { Sales in pounds } & 3,740 \mathrm{lbs} . & 3,960 \mathrm{lbs} . & 4,400 \mathrm{lbs} . & 3,300 \mathrm{lbs} \\\text { Price per pound } & \$ 2.80 & \$ 2.80 & \$ 2.00 & \$ 3.00 \\\text { Variable cost per pound } & 1.00 & 2.00 & 1.00 & 1.50 \\\text { Contribution margin } & \$ 1.80 & \$ 0.80 & \$ 1.00 & \$ 1.50\end{array} Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively.
-What is the actual contribution margin for the month?

Comprehend the amortization of bond discount and premium using straight-line and effective interest rate methods.
Identify and explain the terms and characteristics of different types of bonds, such as callable, convertible, and term bonds.
Understand the redemption of bonds before maturity and the associated accounting entries.
Interpret balance sheet and income statement data relating to bonds to calculate financial ratios.

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