E5-14 Naylor Company had $210,000 of net income in 2013 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2014. The president of Naylor Company is under pressure from stockholders to increase net income by $52,000 in 2014. 's Instructions (a) Compute the number of units sold in 2013. (b) Compute the number of units that would have to be sold in 2014 to reach the stock- holders' desired profit level. (c) Assume that Naylor Company sells the same number of units in 2014 as it did in 2013. What would the selling price have to be in order to reach the stockholders' desired profit level?
Q: The following are ABC’s balances for last month: sales, P2 million; variable expenses, P1.4 million;…
A: Operating leverage help in measuring the company by what degree its profit changes if there is a…
Q: The third In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32…
A: Solution :- Old contribution per unit = 32 -22 = $10 per unit Old total contribution = 1,200,000 x…
Q: Data from a company's last period of operations shows sales of 2,000 units, total contribution…
A: Contribution margin: It refers to the total amount of earnings available to company to cover its…
Q: You are evaluating the performance of Department X of Banawe Corporation for the year 2013. You are…
A: Residual income = Income is difference between the minimum required rate of return and the sales…
Q: Portis, Inc. reported sales of $8,000,000 for the month and incurred variable totaling $5,600,000…
A: Introduction: The amount of operating leverage a company has influences how much its total revenue…
Q: E5-14 Naylor Company had $210,000 of net income in 2013 when the selling price per unit was $150,…
A: “Since you have asked two sets of questions and the first one remains incomplete, we will solve the…
Q: Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $289,000, total…
A: Contribution Margin Ratio: The contribution margin ratio is the percent change between a company's…
Q: For its most recent fiscal year, a firm reported that its contribution margin was equal to 40…
A: The question is based on the concept of Cost Accounting.
Q: Smart company Sold 11,000 softwares during current year For $440,000 , Variable costs are $110,000…
A: The contribution margin is calculated as difference between sales revenue and variable costs.
Q: Shown below is the Profit & Loss Statement of start-up company THE PEANUT BETTER CO. Let us assume…
A: The question is related to Return on Investment. The return on investment is calculated with the…
Q: .Kipling Company has sales of $1,500,000 for the first quarter of 2016. In making the sales, the…
A: Under CVP income statement, Contribution margin is calculated as (Sales - Variable cost) Net…
Q: Sabv Corporation's break-even-point in sales is $820,000, and its variable expenses are 80% of…
A:
Q: For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000…
A: Profit before tax = Profit after tax / ( 1 - tax rate) = 62720/(1-0.30) = $89,600 Contribution…
Q: Operating Income of $220,000 in 2019, when production was 3,000 units Variable expenses per unit:…
A: The estimated amount of profit that a business's managers intend to generate by the end of a…
Q: Last year, Ezra Company reported sales of P640,000, a contribution margin of P160,000, and a net…
A: Solution: Contribution margin ratio = Contribution margin / Sales = P160,000 / P640,000 = 25% Net…
Q: Jonick Company has sales of $460,000, and the break-even point in sales dollars is $372,600.…
A: Sales $4,60,000 Break-even point in sales dollars $3,72,600 Margin of Safety $ (Sales in dollar…
Q: Naylor Company had $210,000 of net income in 2016 when the selling price per unit was $150, the…
A: The net profit on sales is calculated as difference between sales revenue and expenses (Fixed and…
Q: Bondi Corp. sells a product for $45, variable costs are $25 per unit, and fixed costs are $20,000…
A: Operating leverage factor = Contribution margin/Net operating income
Q: The financial data for 2017 and 2018 are presented in the table below. Use the data to calculate the…
A: Productivity seems to be a significant indication of a company's capacity to provide a product or…
Q: The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.68…
A: Percent to sales method: Under this method every expenses or costs are taken as a percentage of…
Q: Rampart's had net income in 2020 of $120,000. Rampart's variable costs were 20% of its total…
A: Given, Variable costs = 20% Contribution margin ratio = 100%-20% Contribution margin ratio = 80%
Q: In 2018, Downy Co presented total variable cost at $687.50; total fixed cost at $6,750,000; sales…
A: Working note :- Particulars Amount $ Amount $ Sales price per unit [a] 1250.00 Less…
Q: Operating results for department B of Delta Company during 2016 are as follows: Sales $538,000…
A: New Sales = Sales for 2016 x 110% = $538,000*110% = $591,800 New Cost of goods sold = Cost of goods…
Q: Sabv Corporation's break-even-point in sales is $920,000, and its variable expenses are 70% of…
A: Break-even Point The break-even point (BEP) of sales is calculated as the sales revenue at which…
Q: In planning its operations for 2011 on the basis of a sales forecast of 6,000,000 ASF Inc. prepared…
A: Break-even Sales represents that particular point of sale where there is no operating profit/loss.…
Q: The Titan Company provides you with the following information for the current year: Revenues =…
A: It is given that cost of goods sold = $750,000 2/3rd of the above is variable , variable cost =…
Q: MNO Products, Inc. planned and actually manufactured 200,000 units of its single product in 2020,…
A: Variable cost is that change as the amount of the great or administration that a business produces…
Q: The income statement of Carlson Company for the year ended March 31, 2012 are as follows: (in…
A: Answer: a. The company sold more goods by volume in 2012 than in 2011. The statement is correct.…
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: Contribution Margin: It is the aggregate amount of revenue that is available after total expenses…
Q: STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 2013 Sales (30,000 tires at…
A: Break even refers to the situation of no profit and no loss. At the point of break even, business is…
Q: Parker Products, Inc. is a manufacturer whose absorption costing income statement reported sales of…
A:
Q: Cute Sdn. Bhd. produces sporting equipment. In 2019, the first year of operations, Cute Sdn. Bhd.…
A: Under absorption costing, the net income is calculated by deducting all the variable and fixed…
Q: According to the producer price index database maintained by the Bureau of Labor Statistics, the…
A: The income statement determines the net income of the business by subtracting the total expenses…
Q: Operating Income of $220,000 in 2019, when production was 3,000 units Variable expenses per…
A:
Q: Elgin Battery Manufacturers had sales of $1,000,000 in 2015 and their cost of goods sold is…
A: Sales = $1000,000 COGS = $700,000 Selling and admin. expenses = $100,000 Depreciation = $80,000…
Q: Elgin Battery Manufacturers had sales of $1,000,000 in 2015 and their cost of goods sold is…
A: Income taxes is the amount of taxes and obligations which needs to be paid by the individual or…
Q: A company has a product Kio and it has a profit volume ratio of 28%. Fixed operating costs directly…
A: PV ratio is computed as percentage calculated by dividing contribution margin by sales.
Q: I am in ACCT 201 managerial accounting and I'm having the worst time with formulas. In this…
A: Formula: Break even point in dollar sales = Fixed cost / contribution margin ratio Division of fixed…
Q: The Rachel Company has sales of $450,000, and the break-even point in sales dollars is $292,500.…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Blades product division reported the following income statement for its stockholders: Income…
A: Absorption costing, sometimes called full absorption costing, is a managerial accounting method for…
Q: Sabv Corporation's break-even-point in sales is $920,000, and its variable expenses are 70% of…
A: The Break-even point in sales refers to sales at which the revenues generated by the company is…
Q: Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 95…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Lynn Company had $150,000 of net income in 2010 when the selling price per unit was $150, the…
A: The profitability status of the company can be arrived from the financial statements prepared by the…
Q: Please help with all the calculations and answer The 2016 income statement for J.Galarraga…
A: The required sale for desired profit can be calculated by dividing the sum of fixed cost and desired…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- E5-14 Naylor Company had $210,000 of net income in 2013 when the selling price perunit was $150, the variable costs per unit were $90, and the fi xed costs were $570,000.Management expects per unit data and total fi xed costs to remain the same in 2014. Thepresident of Naylor Company is under pressure from stockholders to increase net incomeby $52,000 in 2014.Instructions(a) Compute the number of units sold in 2013. (b) Compute the number of units that would have to be sold in 2014 to reach the stock-holders’ desired profi t level. (c) Assume that Naylor Company sells the same number of units in 2014 as it did in 2013.What would the selling price have to be in order to reach the stockholders’ desired profit level?Naylor Company had $210,000 of net income in 2016 when the selling price perunit was $150, the variable costs per unit were $90, and the fi xed costs were $570,000.Management expects per unit data and total fi xed costs to remain the same in 2017. Thepresident of Naylor Company is under pressure from stockholders to increase net incomeby $52,000 in 2017.Instructions(a) Compute the number of units sold in 2016.(b) Compute the number of units that would have to be sold in 2017 to reach the stockholders’ desired profi t level.(c) Assume that Naylor Company sells the same number of units in 2017 as it did in 2016.What would the selling price have to be in order to reach the stockholders’ desiredprofi t level?P5-3A Dousmann Corp.’s sales slumped badly in 2014. For the fi rst time in its history, it operated at a loss. The company’s income statement showed the following results from selling 500,000 units of product: sales $2,500,000; total costs and expenses $2,600,000; and net loss $100,000. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of good sold 2140000 1540000 600000 Selling expense 250000 92000 158000 Administrative expenses 210000 68000 142000 2600000 1700000 900000 Management is considering the following independent alternatives for 2015. Increase unit selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fi xed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales. Instructions Compute the break-even point in dollars for 2014. Compute the break-even point in dollars under each of…
- Lynn Company had $150,000 of net income in 2010 when the selling price per unit was $150, the variable costs per unit were $100, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2011. The president of Lynn Company is under pressure from stockholders to increase net income by $60,000 in 2011. Required: Compute the number of units sold in 2010. Compute the number of units that would have to be sold in 2011 to reach the stockholders’ desired profit level. Assume that Lynn Company sells the same number of units in 2011 as it did in 2010.What would the selling price have to be in order to reach the stockholders’ desired profit level?The income statement of Carlson Company for the year ended March 31,2012 are as follows: (in million of pesos) 2012 2011 Sales P 320.5 P305.4 Cost of sales 274.1 253.9 Gross profit 46.4 51.5 Distribution costs 11.6 10.4 Administrative expenses 22.6 23.5 Other operating income 4.5 6.4 Earnings before interest and taxes 16.7 24.0 .Interest charges 1.9 4.3 .Earnings before taxes 14.8 19.7 Which of the following is correct?a. The company sold more goods by volume in 2012 than in 2011.b. The gross margin as a percentage of sales was higher in 2012 than in 2011.c. The increase in distribution costs in 2012 over and above the 2011 amount isdue to the higher sales turnover.d. The net profit margin as a percentage of sales fell in 2012 and about 2/3 ofthe 2011 level.Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000 ( 16,000) Gross margin P1,166,000 P 900,000 P234,000 The unit cost decreased by 10% on January 1, 2021. What is increase (decrease) in cost of goods sold due to volume?
- Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000 ( 16,000) Gross margin P1,166,000 P 900,000 P234,000 The unit cost decreased by 10% on January 1, 2021. What is increase (decrease) in cost of goods sold due to volume? P(176,000) P(160,000) P 160,000Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000 ( 16,000) Gross margin P1,166,000 P 900,000 P234,000 The unit cost decreased by 10% on January 1, 2021. What is increase (decrease) in cost of goods sold due to volume? Group of answer choices P(160,000) P 176,000 P 160,000 P(176,000) pls answer fastAt year-end 2015, Wallace Landscaping’s total assets were $1.9 million and its accounts payable were $425,000. Sales, which in 2015 were $2.3 million, are expected to increase by 30% in 2016. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $430,000 in 2015, and retained earnings were $340,000. Wallace has arranged to sell $65,000 of new common stock in 2016 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2016. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 7%, and 40% of earnings will be paid out as dividends. How much new long-term debt financing will be needed in 2016? (Hint: AFN - New stock = New long-term debt.) Do not round…
- The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.68 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $66,000 in cash dividends during 2016. Metroline Manufacturing's income statement for the year ended December 31, 2015, is given along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2016. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2016. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2016 income? Explain why.Pomelo Corporation has estimated its activity for December 2014. Selected data from these estimatedamounts are as follows:Sales = P350,000Gross profit (based on sales) = 30%Increase in trade accounts receivable during the month = 10,000Change in accounts payable during the month = 0Increase in inventory during the month = 5,000 Variable selling, general & administrative expenses (S,G,& A) includes for uncollectible accounts of 1%of sales. Total S,G,& A is P35,000 per month plus 15% of sales. Depreciation expense of P20,000 per month is included in fixed S,G,&,A. 15. On the basis of the above data, what are the estimated cash receipts from operations for December?a. P336,500 b. P340,000 c. P346,500 d. P350,000 16. On the basis of the above data, what are the estimated cash disbursements from operations for December?a. P309,500 b. P313,000 c. P314,000 d. P318,000Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000 ( 16,000) Gross margin P1,166,000 P 900,000 P234,000 The unit cost decreased by 10% on January 1, 2021. What is the effect on sales due to change in selling price? Group of answer choices P275,000 increase P250,000 increase P 0 P 75,000 increase