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A docs.google.com cuspace.h... fn https://soul2.hkuspace.h. n https://soul2.hkuspace.h. G Google Docs: Free Onlin.. E Untitled s Add-ons Help Last edit was seconds ago Arial 11 BIUA 三=加 三 ニ= ,三▼三 1 2 5 The company sells T-shirts with identical unit costs and selling prices. Shown below are the revenue and cost information: Unit Variable Data (per unit) $ 80.00 $30.00 Monthly Fixed Costs $140,000 $200,000 $40,000 Other fixed costs $20,000 Selling price Rent Variable Cost Salaries Advertising The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. Required: a) Prepare the contribution format income statement for last month. b) Compute the breakeven sales in dollars. Compute the margin of safety percentage last month. c) Compute the degree of operating leverage. d) How many units should the company sell to achieve a target net operating income of $49.500? e) If the company plans to offer sales commission to salesperson and reduce the fixed salaries by 5%, it is estimated sales will increase by 300 units and net income will increase by $9,550. How much should be sales commission per unit? f) If the increase of sales by 500 units and net income increase by $9,550 can be achieved by price cut of $1 each and additional advertising, how much should the company increase the advertising costs? MAR 16 stv

A docs.google.com cuspace.h... fn https://soul2.hkuspace.h. n https://soul2.hkuspace.h. G Google Docs: Free Onlin.. E Untitled s Add-ons Help Last edit was seconds ago Arial 11 BIUA 三=加 三 ニ= ,三▼三 1 2 5 The company sells T-shirts with identical unit costs and selling prices. Shown below are the revenue and cost information: Unit Variable Data (per unit) $ 80.00 $30.00 Monthly Fixed Costs $140,000 $200,000 $40,000 Other fixed costs $20,000 Selling price Rent Variable Cost Salaries Advertising The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. Required: a) Prepare the contribution format income statement for last month. b) Compute the breakeven sales in dollars. Compute the margin of safety percentage last month. c) Compute the degree of operating leverage. d) How many units should the company sell to achieve a target net operating income of $49.500? e) If the company plans to offer sales commission to salesperson and reduce the fixed salaries by 5%, it is estimated sales will increase by 300 units and net income will increase by $9,550. How much should be sales commission per unit? f) If the increase of sales by 500 units and net income increase by $9,550 can be achieved by price cut of $1 each and additional advertising, how much should the company increase the advertising costs? MAR 16 stv

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter6: Aging Accounts Receivable (aging)
Section: Chapter Questions
Problem 2R
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Bookmarks Window Help docs.google.com nkuspace.h. Tn https://soul2.hkuspace.h... h https://soul2.hkuspace.h. G Google Docs: Free Onlin.. E Untitled ls Add-ons Help Last edit was seconds ago 3回回,三 州咖山 1三 Arial 11 BIUA + ニ三▼三▼三 4 5 1 6 The company sells T-shirts with identical unit costs and selling prices. Shown below are the revenue and cost information: Unit Variable Data (per unit) Selling price Variable Cost Monthly Fixed Costs $140,000 $200,000 $40,000 Other fixed costs $20,000 $ 80.00 $30.00 Rent Salaries Advertising The com has no beginning or ending inventories. The company produced and sold 10,000 units last month. Required: a) Prepare the contribution format income statement for last month. b) Compute the breakeven sales in dollars. Compute the margin of safety percentage last month. c) Compute the degree of operating leverage. d) How many units should the company sell to achieve a target net operating income of $49.500? e) If the company plans to offer sales commission to salesperson and reduce the fixed salaries by 5%, it is estimated sales will increase by 300 units and net income will increase by $9,550. How much should be sales commission per unit? f) If the increase of sales by 500 units and net income increase by $9,550 can be achieved by price cut of $1 each and additional advertising, how much should the company increase the advertising costs? MAR 16 stv MacBo
Transcribed Image Text:Bookmarks Window Help docs.google.com nkuspace.h. Tn https://soul2.hkuspace.h... h https://soul2.hkuspace.h. G Google Docs: Free Onlin.. E Untitled ls Add-ons Help Last edit was seconds ago 3回回,三 州咖山 1三 Arial 11 BIUA + ニ三▼三▼三 4 5 1 6 The company sells T-shirts with identical unit costs and selling prices. Shown below are the revenue and cost information: Unit Variable Data (per unit) Selling price Variable Cost Monthly Fixed Costs $140,000 $200,000 $40,000 Other fixed costs $20,000 $ 80.00 $30.00 Rent Salaries Advertising The com has no beginning or ending inventories. The company produced and sold 10,000 units last month. Required: a) Prepare the contribution format income statement for last month. b) Compute the breakeven sales in dollars. Compute the margin of safety percentage last month. c) Compute the degree of operating leverage. d) How many units should the company sell to achieve a target net operating income of $49.500? e) If the company plans to offer sales commission to salesperson and reduce the fixed salaries by 5%, it is estimated sales will increase by 300 units and net income will increase by $9,550. How much should be sales commission per unit? f) If the increase of sales by 500 units and net income increase by $9,550 can be achieved by price cut of $1 each and additional advertising, how much should the company increase the advertising costs? MAR 16 stv MacBo
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