Assume the following information Sales 12,000 Units Variable Cost/unit $ 8.00 Production Scenario 1 12,000 Units Fixed Mfg. Costs $240,000 Scenario 2 48,000 Units $ 18.00 Selling & Admin Exp $ 20,000 |(75% Variable) Selling Price/unit Scenario 1 Scenario 2 1. Prepare an income statement for both scenarios under the Absorption method of costing: Sales COGS Gross Profit Selling & Admin Exp. Inc. from Operations 2. Prepare an income statement for both scenarios under the Variable method of costing: Sales Variable Mfg. Mfg Margin Variable S &A Contribution Margin Fixed Mfg Fixed S& A Inc. from Operations

Q: Vacationnatalaga Corporation produces a single product. Data concerning the company's first year of…

A: The net income is calculated as difference between sales revenue and total expenses.

Q: Walton Company incurs annual fixed costs of $52,925. Variable costs for Walton's product are $26.00…

A: Calculate the sales in units to earn the desired profit as follows: Units = (Fixed cost + Profit)…

Q: Calculate amount of sales when variable costs are equal to 2/5th of sales and fixed costs are equal…

A: Following are the answers to given questions

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A: Under absorption and variable costing, the prime difference in income is because of inventory…

Q: Expected unit selling price is: $125 Expected unit variable cost is: $70 Expected total fixed…

A: Important formula's to be used while doing calculations: Break-even point in units = Fixed cost /…

Q: The BX55160 company has provided its contribution format income statement for a given month. Sales…

A: Selling price per unit = $415,800/6300  Selling price per unit = $66   Variable expense per unit =…

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Q: Target Profit Outdoors Company sells a product for $195 per unit. The variable cost is $80 per…

A: (a) Break Even Point in sales unit = Total Fixed Cost / Contribution per unit Contribution Per unit…

Q: Outdoors Company sells a product for $195 per unit. The variable cost is $70 per unit, and fixed…

A: The question is based on the concept of Cost Accounting.

Q: Shoosta Ltd produces two different products with the following monthly data:     A1    A2    Total…

A: Working Note :- Particulars A1  $ A2 $ Total $ Sales Rate per unit [a] 100 12…

Q: year of operations appear below: Units produced Units sold Selling price per unit Direct Materials…

A: Solution: The difference in variable cost and absorption is that of treatment of fixed manufacturing…

Q: Willie Company sells 27,000 units at $29 per unit. Variable costs are $17.11 per unit, and fixed…

A: 1.Contribution margin per unit= Sale price- Variable cost   2. Contribution margin ratio=…

Q: Expected unit selling price is: $125 Expected unit variable cost is: $70 Expected total fixed…

A: In this numerical has covered the concept of Cost- Volume - Profit analysis. Break- Even Point Is…

Q: Assume the following information:      Amount   Per Unit   Sales $ 300,000       $ 40…

A: Break-even analysis is a technique used widely by production management. It helps to determine the…

Q: Willie Company sells 30,000 units at $16 per unit. Variable costs are $13.28 per unit, and fixed…

A: Solution a: Contribution margin ratio = CM per unit / Selling price per unit = ($16 - $13.28) / $16…

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A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: A company produces a single product. Variable production costs are P12 per unit and variable selling…

A: Given that, Variable production cost per  unit = P12 per unit  Opening inventory = 0 Production…

Q: Willie Company sells 28,000 units at $36 per unit. Variable costs are $20.16 per unit, and fixed…

A: The Break-even point is that level of sales, where the total cost i.e variable and fixed both are…

Q: Wang Co. manufactures and sells a single product that sells for $250 per unit; variable costs are…

A: Answer) Calculation of desired sales to earn target Pre-tax net income Desired Sales in dollars =…

Q: QUESTION 1 B Limited produces and sells the following three products: Product X Y Z Selling…

A: SOLUTION-A    Calculation the weighted average contribution sales ratio (C/S ratio) of the products-…

Q: Contribution Margin Ferrante Company sells 31,000 units at $18 per unit. Variable costs are $10.62…

A: Contribution Margin is difference between sales value and variable cost. It can also be defined as…

Q: .Q1/-A variable capacity 8000unit .sell units 6000units -production units 5000units .Finished good…

A: The costing theory where all the costs are noted is called total costing theory, whereas theory…

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A: The target total product cost is calculated as difference between revenue at market price and…

Q: Following data relate to xyz limited Normal capacity 40000 unit’s per month Variable cost @ 10 per…

A: Absorption Costing: absorption costing is also called "Full costing", it is a technique of…

Q: Sally Company sells 19,000 units at $50 per unit. Variable costs are $40.50 per unit, and fixed…

A: Determination of Contribution margin ratio, Unit contribution margin and Operating income is…

Q: equired (show your workings for each question):   A) Prepare a contribution margin income statement…

A: Solution Given   A1 A2 total Selling price per unit 100 12   Variable cost…

Q: Helium Company has the following information available:   Selling price per unit…

A: Target Sales Units = Fixed Cost + Target Net IncomeContribution per unit

Q: Break-Even Sales and Sales to Realize Income from Operations For the current year ending October…

A: Contribution margin per unit = Unit selling price - Unit variable cost Break-even sales (units) =…

Q: Melanio Company produces a merchandise that has the following data: P80 per unit P48 per unit…

A: Marginal Costing - Marginal Costing is the method of computing operating profit by bifurcating…

Q: United Merchants Company sells 17,000 units at $10 per unit. Variable costs are $6.40 per unit, and…

A: Formula: Contribution margin = Selling price - variable cost Deduction of variable cost from selling…

Q: Calculate Variable costing and Full Costing for the three years data following?    Basic Data…

A: In this problem we will show profitability by both methods seperately…

Q: Calculate amount of sales when variable costs are equal to 2/5th of sales and fixed costs are equal…

A: Contribution margin  = Sales - Variable expenses= Rs. 150 - Rs. 90= Rs. 60 per unit

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A: a. Compute contribution margin ratio.

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A: Variable costing means Marginal…

Q: Jordan Company incurs annual fixed costs of $51,415. Variable costs for Jordan's product are $30.15…

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Q: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $126 per…

A: a. Compute difference in absorption costing operating income for plan to produce 10,000 units and…

Q: Contribution Margin Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per…

A: Contribution margin ratio = Unit Contribution margin/Selling price Unit contribution margin =…

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Q: Vacationnatalaga Corporation produces a single product. Data concerning the company's first year of…

A: The difference in variable cost and absorption is that of treatment of fixed manufacturing overhead.…

Q: West Liberty Inc's Division C has the following: Sales.. Variable cost of goods sold .. $210,000…

A: Net Income: The resultant amount after reducing all expenses of the company whether direct or…

Q: Type of cost Sales person commision Wages Expense Cost 9.45 per unit $ 100,000.00 per month $…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

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A: Differential Analysis: Differential Analysis is an analysis used to differentiate between…

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A: The break even sales are the sales where business earns no profit no loss during the period.

Q: The information below pertains to xyz limited. 40000 units per month is the normal capability. @ 10…

A: Answer:-  Absorption costing meaning:- Absorption costing is a way of assessing the cost of a…

Characteristics of Bonds