Break-Even SalesSuntory Holdings Limited is a Japanese beverage maker that produces alcoholic and non-alcoholic beverages including Suntory whiskey, Orangina, Ribena, andLucozade. Suntory reported the following operating information for a recent year (in billions of JPY):Net salesJPY 1,411Cost of goods sold629Selling, general and administration6881,317Income from operations94In addition, assume that Suntory sold 250 million barrels of beverages during the year. Assume that variable costs were 70% of the cost of goods sold and 40% ofselling, general, and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that Suntory expects pricing, variable costsper barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by JPY 4 billion.When computing the cost per unit amounts for the break-even formula, round to four decimal places. If required, round your final answer to the nearest whole barrel.a. Compute the break-even number of barrels for the current year.barrelsb. Compute the anticipated break-even number of barrels for the following year.barrels

Calculate the total variable cost per unit. Calculate the total fixed cost per unit. Calculate the…

Answered: Break-Even Sales Suntory Holdings…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter24: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 3MAD: Papa Johns International, Inc. (PZZA), operates over 5,000 restaurants in the United States and 45...

See similar textbooks

Similar questions

Break-Even Sales Suntory Holdings Limited is a Japanese beverage maker that produces alcoholic and non-alcoholic beverages including Suntory whiskey, Orangina, Ribena, and Lucozade. Suntory reported the following operating information for a recent year (in billions of JPY): Net sales JPY 1,411 Cost of goods sold 629 Selling, general and administration 688 1,317 Income from operations 94 In addition, assume that Suntory sold 250 million barrels of beverages during the year. Assume that variable costs were 70% of the cost of goods sold and 40% of selling, general, and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that Suntory expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by JPY 4 billion. When computing the cost per unit amounts for the break-even formula, round to four decimal places. If…
BB Company is merchandising business that sells goods in different parts of the country. The following summarized the transaction of BB during the year: Sales P540,000 Rent income 30,000 Interest income 10,000 Gain on sale of machinery 12,000 Cost of sales 200,000 Rent expense 100,000 Insurance expense 30,000 Depreciation expense 40,000 Loss on sale of equipment 15,000 Foreign exchange translation loss 20,000 Revaluation surplus 40,000 How much is the total income?
Falmouth Kettle Company, a U.S. corporation, sells its products in the United States and Europe. During the current year, selling, general, and administrative (SG&A) expenses included: Personnel department $ 540 Training department 360 President’s salary 410 Sales manager’s salary 208 Other general and administrative 562 Total SG&A expenses $ 2,080 Falmouth had $12,480 of gross sales to U.S. customers and $3,120 of gross sales to European customers. Gross income (sales minus cost of goods sold) from domestic sales was $3,120, and gross profit from foreign sales was $1,040. Apportion Falmouth's SG&A expenses to foreign source income using the following methods: Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. Required: Gross sales. Gross income. If Falmouth wants to maximize its foreign tax credit limitation, which method produces the better outcome? Assume the FDII deduction does not apply.
Starship Corporation reported the following geographical segment revenues for a recent and a prior fiscal year: Recent Year(in millions, rounded) Prior Year(in millions, rounded) Americas $10,479 $8,073 EMEA* 1,217 1,295 China/Asia Pacific 2,396 1,130 Channel Development** 1,731 1,546 Other 2,236 1,695 Total $18,059 $13,739 *Europe, Middle East, and Africa **Sells packaged coffee and teas globally a. Prepare a horizontal analysis of the segment data using the prior year as the base year. Round all percents to one decimal place. Enter all amounts in millions. If required, use minus sign to indicate the decreasing values. Starship Corporation Horizontal Analysis Recent Year (in millions) Prior Year (in millions) Increase (Decrease)Amount Increase (Decrease)Percent Americas $10,479 $8,073 $fill in the blank 15396ff9101df9f_1 fill in the blank 15396ff9101df9f_2% EMEA 1,217 1,295 fill in the blank 15396ff9101df9f_3 fill…
Cold One Brewing Company reported the following operating information for a recent year (in millions): Sales $6,608 Cost of goods sold (1,652) Gross profit $4,956 Marketing, general, and admin. expenses (708) Income from operations $ 4,248 Assume that Cold One sold 59 million barrels of beer during the year, variable costs were 75% of the cost of goods sold and 50% of marketing, general, and administrative expenses, and that the remaining costs are fixed. For the following year, assume that Cold One expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $23.01 million. a. Compute the break-even sales (barrels) for the current year. Round your answer to two decimal places. Enter your answers in millions.fill in the blank 1 million barrels b. Compute the anticipated break-even sales (barrels) for the following year. Round your answer to two decimal…
Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and midwestern states. For the year ended January 31, 2014, the company reported averageinventories of $2,475 (in millions) and an inventory turnover of 4.89. Average total fixed assetswere $2,080 (million) and the fixed asset turnover ratio was 8.14.Required:1. Calculate Dollar General’s gross profit percentage (expressed as a percentage with one decimalplace). What does this imply about the amount of gross profit made from each dollar of sales?TIP: Work backward from the fixed asset turnover and inventory turnover ratios to compute theamounts needed for the gross profit percentage.2. Is this an improvement from the gross profit percentage of 31.7 percent earned during theprevious year?
Our company is a manufacturer and has the following data available for the current year: sales, $550,000; sales discounts, $20,000; sales returns and allowances, $15,000; and cost of goods sold, $200,000. What is the amount reported on the income statement for net sales? $530,000 $515,000 $500,000 $330,000
The following is a portion of the condensed income statement for Rowan, Inc., a manufacturer of plastic containers: Net sales $ 2,460,000Less: Cost of goods sold:Inventory, January 1 $ 630,000Net purchases 1,900,000Inventory, December 31 (690,000) 1,840,000Gross profit $ 620,000 Required:1. Determine Rowan’s inventory turnover.2. What information does this ratio provide?
The following is Cullumber Company’s income statement for the past year. Sales revenue $336,000 Cost of goods sold 134,400 Gross margin 201,600 Operating expenses 145,600 Operating income $56,000 If the company wants to sell a new product that costs $49 wholesale while keeping the same markup structure, what will be the price of the new product? (Use the gross margin percentage and round final answer to 2 decimal places, e.g. 25,124.25.) Price of the new product $enter the price of the new product in dollars rounded to 2 decimal places
National Beverages company estimated the sales as follows Al Dahirah ( in units ) Al Batinah (In units ) Soft drinks 200,000 250,000 Mineral water 50,000 80,000 Assumed that selling price of Soft drinks OMR 0.250 Bz and Mineral water OMR 0.100 Bz., Estimate the total sales in volume. a. OMR 580,000 b. 58,000 Units c. 580,000 Units d. 55,000 Units
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $4,000,000 100.0 % Cost of merchandise sold 2,120,000 60.0 Gross profit $1,880,000 40.0 % Selling expenses $1,080,000 24.0 % Administrative expenses 640,000 14.0 Total operating expenses $1,720,000 38.0 % Income from operations $160,000 2.0 % Other revenue and expense: Other revenue 120,000 3.0 Other expense (80,000) 2.0 Income before income tax expense $200,000 3.0 % Income tax expense 80,000 2.0 Net income $120,000 1.0 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Enter all amounts as positive numbers.…
A comparative income statement follows for Martine Ltd. of Montreal: MARTINE LTD. Comparative Income Statement For the Years Ended October 31, Year 1 and Year 2 Year 2 Year 1 Sales $ 8,050,000 $ 6,050,000 Less: Cost of goods sold 5,095,650 3,605,800 Gross margin 2,954,350 2,444,200 Less: Operating expenses: Selling expenses 1,529,500 1,131,350 Administrative expenses 756,700 726,000 Total expenses 2,286,200 1,857,350 Net operating income 668,150 586,850 Less: Interest expense 136,850 114,950 Net income before taxes $ 531,300 $ 471,900 Members of the company's board of directors are surprised to see that net income increased by only $59,400 when sales increased by $2,000,000. Required: 1. Express each year’s income statement in common-size percentages. (Round your answers to 1 decimal place.)

SEE MORE QUESTIONS

Recommended textbooks for you

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781305084087

Author:

Cathy J. Scott

Publisher:

Cengage Learning

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781305084087

Author:

Cathy J. Scott

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS