15-25 Sales-mix and sales-quantity varlances. Lofty Bread Ltd is a baking company that operates in Thailand. The company produces two types of bread-a full loaf and a mini loaf. A full loaf is 8 inches long and a mini loaf is 3 inches long. Each full loaf is sold for 850 and each mini loaf is sold for 830. Lofty's budget and actual figures for the last year were as follows: Budget Actual Number of valets: Full loafs 3,600 4,000 Mini loafs 2,000 3,980 Revenue 8240,000 8319400 Variable costs: B114,000 B122000 Wages 86,200 B 12,400 Baking materials Utilities 86,520 89,200 B126,720 B143 600 B113,280 B175,800 Contribution Fixed costs: B 36,800 B 36,800 Rent and rates B1390XX) B 76,480 Operating income

15-25 Sales-mix and sales-quantity varlances. Lofty Bread Ltd is a baking company that operates in Thailand. The company produces two types of bread-a full loaf and a mini loaf. A full loaf is 8 inches long and a mini loaf is 3 inches long. Each full loaf is sold for 850 and each mini loaf is sold for 830. Lofty's budget and actual figures for the last year were as follows: Budget Actual Number of valets: Full loafs 3,600 4,000 Mini loafs 2,000 3,980 Revenue 8240,000 8319400 Variable costs: B114,000 B122000 Wages 86,200 B 12,400 Baking materials Utilities 86,520 89,200 B126,720 B143 600 B113,280 B175,800 Contribution Fixed costs: B 36,800 B 36,800 Rent and rates B1390XX) B 76,480 Operating income

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...

See similar textbooks

Similar questions

ToraBika corporation manufactures and sells a seasonal product that has peak sales in the third quarter. The following information concerns operations for year 2-the coming year and for the first two quarters of year 3: The company’s single product sells for Tk. 10 per unit. Budgeted unit sales for the next six quarters are as follows(all sales are credit sales): year 2 quarter Year 3 quarter 1 2 3 4 1 2 40,000 units 60,000 units 1,00,000 units 50,000 units 60,000 units 70,000 units Sales are collected in the following pattern: 65% in the quarter the sales are made, and the remaining 35% in the following quarter. On January 1, year 2, the company’s balance sheet showed tk. 63,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored. c. Raw materials purchased in the following patterns: Y2 y3 Q1 Q2 Q3 Q4 Q5 Q6…
1. Myler Company manufactures and sells a product that has seasonal variations in demand, with peaksales coming the third quarter. The following information concerns operations for Year 2 the coming yearand for the first quarter of year 3. 10a. The company’s single product sells for $ 8 per unit. Budgeted sales in units for the next six quarters areas follows: Year 2 quarter Year 3 quarter1 2 3 4 1 2Budgeted sales 40,000 60,000 1, 00,000 50,000 70,000 80,000b. The company desires an ending inventory of finished units on hand at the end of each quarter equal to30% of the budgeted sales for the next quarter. On December 31, year 1, the company had 12,000 units onhand.c. Five pounds of raw materials are required to complete one unit of product. The company requires anending inventory of raw materials on hand at the end of each quarter equal to 10% of the production needsof the following quarter. On December31, year 1 the company had 23000 pounds of raw material on hand.d. The raw material…
Sales-mix and sales-quantity variances. Lofty Bread Ltd is a baking company that operates in Thailand. The company produces two types of bread—a full loaf and a mini loaf. A full loaf is 8 inches long and a mini loaf is 3 inches long. Each full loaf is sold for ฿50 and each mini loaf is sold for ฿30. Lofty’s budget and actual figures for the last year were as follows: Budget ActualNumber of valets:Full loafs 3,600 4,000Mini loafs 2,000 3,980Revenue ฿240,000 ฿319,400Variable costs:Wages ฿114,000 ฿122,000Baking materials ฿ 6,200 ฿ 12,400Utilities ฿ 6,520 ฿ 9,200฿126,720 ฿143,600Contribution ฿113,280 ฿175,800Fixed costs:Rent and rates ฿ 36,800 ฿ 36,800Operating income ฿ 76,480 ฿139,000Note: The currency of Thailand is the Thai Baht and the currency symbol is ฿. The budgeted contribution to sales ratios for the two types of valet are 44.6% for full loafs and 55% for mini loafs. Using the data provided for full valets and mini loafs, compute: Required1.The total sales-mix contribution…
Mynor Corporation manufactures and sells a seasonal product that has peak sales in the third quarter. Thefollowing information concerns operations for Year 2—the coming year—and for the first two quarters ofYear 3:a. The company’s single product sells for $8 per unit. Budgeted sales in units for the next six quarters areas follows (all sales are on credit):Year 3Year 2 Quarter Quarter1 2 3 4 1 2Budgeted unit sales ........... 40,000 60,000 100,000 50,000 70,000 80,000b. Sales are collected in the following pattern: 75% in the quarter the sales are made, and the remaining25% in the following quarter. On January 1, Year 2, the company’s balance sheet showed $65,000in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts arenegligible and can be ignored.c. The company desires an ending finished goods inventory at the end of each quarter equal to 30% of thebudgeted unit sales for the next quarter. On December 31, Year 1, the company had 12,000…
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Dollar sales to break-even = White 48 % $ 302,400 90,720 $ 211,680 Fixed expenses CM ratio = 100 % 30 % 70 % $ $ $232,440 0.52 Fragrant 20 % 126,000 100, 800 25, 200 Product 100 % 80 % 20 % = $447,000 Loonzain 32 % $ 201,600 110,880 90,720 100 % 55 % 45 % Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Total 100 % $ 630,000 302,400 327,600 232,440 95,160 $ 100 % 48 % 52 % As shown by these data, net operating income is budgeted at $95,160 for the month and the estimated break-even sales is $447,000. Assume that actual…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin White 48% $ 292,800 87,840 $ 204,960 100% 30% 70% Fragrant 20% $ 122,000 97,600 $ 24,400 Product 100% 80% 20% Loonzain 32% $ 195,200 107,360 $ 87,840 100% 55% 45% Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Total 100% $ 610,000 292,800 317, 200 231,920 $ 85,280 100% 48% 52% Fixed expenses Net operating income Dollar sales to break-even Fixed expenses ÷ CM ratio = $231,920 ÷ 0.52 = $446,000 As shown by these data, net operating income is budgeted at $85,280 for the month and the estimated break-even sales is $446,000. Assume actual sales for the month…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Dollar sales to break-even = Fixed expenses ÷ CM ratio = $223,600 ÷ 0.52 = $430,000 As shown by these data, net operating income is budgeted at $145,600 for the month and the estimated break-even sales is $430,000. Assume that actual sales for the month total $710,000 as planned; however, actual sales by product are: White, $227,200; Fragrant, $284,000; and Loonzain, $198,800. Required: Prepare a contribution format income statement for the month based on the actual sales data. Compute the break-even point in dollar sales for the month based on your actual data.
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales. Sales Variable expenses Contribution margin White 48% Required 11 $ 302,400 90,720 $ 211,680 Required 21 100% 30% 70% Fragrant 20% $ 126,000 100,800 $ 25,200 Product Loonzain 329 100% $ 201,600 80% 110,880 20% $ 90,720 Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Complete this question by entering your answers in the tabs below. 100% 55% 45% Total 100% Fixed expenses Net operating income Dollar sales to break-even - Fixed expenses/CM ratio= $233,480/0.52-$449,000 As shown by these data, net operating income is budgeted at $94,120 for the month and the estimated break-even sales is $449,000.…
Myler Company manufactures and sells a product that has seasonal variations in demand, with peaksales coming the third quarter. The following information concerns operations for Year 2 the coming yearand for the first quarter of year 3. a. The company’s single product sells for $ 8 per unit. Budgeted sales in units for the next six quarters areas follows: Year 2 quarter Year 3 quarter1 2 3 4 1 2Budgeted sales 40,000 60,000 1, 00,000 50,000 70,000 80,000b. The company desires an ending inventory of finished units on hand at the end of each quarter equal to30% of the budgeted sales for the next quarter. On December 31, year 1, the company had 12,000 units onhand.c. Five pounds of raw materials are required to complete one unit of product. The company requires anending inventory of raw materials on hand at the end of each quarter equal to 10% of the production needsof the following quarter. On December31, year 1 the company had 23000 pounds of raw material on hand.d. The raw material…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: White Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Product Fragrant 20% $ 150,000 108,000 $ 42,000 Net operating income Dollar sales to break-even = Fixed expenses/ CM ratio = $449,280 / 0.64 = $702,000 Loonzain 100% Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 72% 28% As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000. Assume that actual sales for the month total $750,000 as planned; however, actual sales by product are: White, $300,000; Fragrant, $180,000; and Loonzain, $270,000. 2. Compute the break-even point in dollar sales for the month based on your actual data. Total 52% $ 390,000…
Muhanga Corporation sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows. Product Sales Volume (Units) Selling Price Variable Cost R 17,600 $ 19 $ 13 S 13,600 15 6 T 54,800 16 10 What is the company's weighted-average unit contribution margin?
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product White Fragrant Loonzain Total Percentage of total sales 48 % 20 % 32 % 100 % Sales $ 307,200 100 % $ 128,000 100 % $ 204,800 100 % $ 640,000 100 % Variable expenses 92,160 30 % 102,400 80 % 112,640 55 % 307,200 48 % Contribution margin $ 215,040 70 % $ 25,600 20 % $ 92,160 45 % 332,800 52 % Fixed expenses 227,760 Net operating income $ 105,040 Dollar sales to break-even = Fixed expenses = $227,760 = $438,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $105,040 for the month and the estimated break-even sales is $438,000. Assume that actual sales for the month…