-18. Contribution Margin ConceptsDiPinto Electric Guitars & Basses sells musical instruments in Philadelphia. Assume the follow-ing information comes from the company's prior year records.Chapter 15 Cost-Volume-Profit Analysis andFixedSales.VariableTotalCostsGoods sold.$800,000Labor.$346,000SuppliesUtilities$180,00040,00010,0009,00048,0004,000Rent5,000Advertising10,00010,000Miscellaneous.5,000Total costs.$267,000$400,000(667,000)Net income.$133,000REQUIREDa.Determine the annual break-even dollar sales volume.b. Determine the current margin of safety in dollars.C. Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maxi-mum values of $1,000,000. Draw a vertical line on the graph for the current ($800,000) saleslevel, and label total variable costs, total fixed costs, and total profits at $800,000 sales.". What is the annual break-even dollar sales volume if management makes a decision that in-creases fixed costs by $50,000?

Cost Volume Profit is a study in cost accounting to meet the net profit goals of a manufacturing…

REQUIRED a. Determine the annual break-even dollar sales volume. b. Determine the current margin of safety in dollars. - Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maxi- mum values of $1,000.000. Draw a vertical line on the graph for the current ($800,000) sales level and Inhol total variable costs, total fixed costs, and total profits at $800,000 sales. thot in

REQUIRED a. Determine the annual break-even dollar sales volume. b. Determine the current margin of safety in dollars. - Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maxi- mum values of $1,000.000. Draw a vertical line on the graph for the current ($800,000) sales level and Inhol total variable costs, total fixed costs, and total profits at $800,000 sales. thot in

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.16E

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Rongon Company manufactures twotypes of product. Selected information is given below:FantasyJoySelling price per unit$25$150Variable expenses per unit$15$35Number of units sold annually20,0005,000Fixed expenses total $480,800 per year. Required: i.Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the break-even point in dollars for the company as awhole and the margin of safety in both dollars and percent.ii.The company has developed a new product to be called Delight. Assume that the company could sell 10,000 units at $65each. The variable expenses would be $58each. The company’s fixed expenses would not change. a. Prepare another contribution format income statement, including sales of the Samoan Delight (sales of the other two products would not change). b. Compute the company’s new break-even point in dollars and the new margin…
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The Variable Cost of Goods Sold in the Marin Company totals P325,000. Fixed selling and administrative expenses totaled P115,000 and variable selling and administrative expenses were P210,000. If Marin Company's contribution margin totaled P590,000, then sales is? What is the effect of this in the ompany of Marin? a.P650,000 B.Ph 915,000 C.Ph 1,030,000 D.Ph 1,125,000 Topic: Cost Volume Profit Please explain each clearly and solve in good form. Format: 1. What is the nature of the problem? 2. What is being asked in the problem? 3. Solution (with clear explanation on how it happened and step by step solution) (also explain why did you multiply, add, minus or divide) (explain every detail and the concept) 4. Conclusion (explain how you can relate it in real situation)
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*CAN YOU ANSWER PARTS 4-7* The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 992,000 $ 49.60 Variable expenses 595,200 29.76 Contribution margin 396,800 19.84 Fixed expenses 318,800 15.94 Net operating income 78,000 3.90 Income taxes @ 40% 31,200 1.56 Net income $ 46,800 $ 2.34 The company had average operating assets of $492,000 during the year. Required: 1. Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above. 2. Using Lean Production, the company is able to reduce the average level of…
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