3 esThe following income statements illustrate different cost structures for two competing companies:Number of customers (a)Sales revenue (a x $230)Variable cost (a x $185)Contribution marginFixed costNet incomeIncome StatementsRequireda. Reconstruct Gibson's income statement, assuming that it serves 178 customers when it lures 89 customers away from Franklin bylowering the sales price to $130 per customer.Required A Required Bb. Reconstruct Franklin's income statement, assuming that it serves 178 customers when it lures 89 customers away from Gibson bylowering the sales price to $130 per customer.Complete this question by entering your answers in the tabs below.FRANKLIN COMPANYIncome StatementSales revenueVariable costContribution marginFixed costNet income (loss)Gibson89$20,470N/A20,470(16,465)$4,005Reconstruct Franklin's income statement, assuming that it serves 178 customers when it lures 89 customers away fromGibson by lowering the sales price to $130 per customer.Company NameFranklin89$$$20,470(16,465)4,0050$4,00500

The income statement shows the financial position of the company whether the business is making a…

Answered: es The following income statements…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following income statements illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (a x $230) Variable cost (a x $185) Contribution margin Fixed cost Net income Required Income Statements Required A Required B a. Reconstruct Gibson's income statement, assuming that it serves 178 customers when it lures 89 customers away from Franklin by lowering the sales price to $130 per customer. b. Reconstruct Franklin's income statement, assuming that it serves 178 customers when it lures 89 customers away from Gibson by lowering the sales price to $130 per customer. Complete this question by entering your answers in the tabs below. GIBSON COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Reconstruct Gibson's income statement, assuming that it serves 178 customers when it lures 89 customers away from Franklin by lowering the sales price to $130 per customer. $ Company Name Franklin 89 $ Gibson…
The following income statements illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (ax $250). Variable cost (ax $190) Contribution margin Fixed cost Net income Income Statements Company Name BENSON COMPANY Income Statement Sales revenue Vanable cost Benson 82 $20,500 N/A 20,500 (15,580) $4,920 Required a. Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird by lowering the sales price to $150 per customer. b. Reconstruct Baird's income statement, assuming that it serves 164 customers when it lures 82 customers away from Benson by lowering the sales price to $150 per customer. Contribution margin Fixed cost Net income (loss) Complete this question by entering your answers in the tabs below. Baird 82 $20,500 (15,580) 4,920 0 $4,920 Required A Required B Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from…
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Gibson Franklin Number of customers (a) 81 81 Sales revenue (a × $210) $17,010 $17,010 Variable cost (a × $190) N/A (15,390) Contribution margin 17,010 1,620 Fixed cost (15,390) 0 Net income $1,620 $1,620 Required Reconstruct Gibson’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Franklin by lowering the sales price to $110 per customer. Reconstruct Franklin’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Gibson by lowering the sales price to $110 per customer.
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Gibson Jordan Number of customers (a) Sales revenue (a x $200) Variable cost (a x $185) Variable cost (a x $0) Contribution margin 89 89 $ 17,800 $ 17,800 N/A (16,465) N/A 17,800 (16,465) $ 1,335 1,335 Fixed cost Net income 1,335 Required a. Reconstruct Jordan's income statement, assuming that it serves 178 customers when it lures 89 customers away from Gibson by lowering the sales price to $100 per customer. b. Reconstruct Gibson's income statement, assuming that it serves 178 customers when it lures 89 customers away from Jordan by lowering the sales price to $100 per customer.
The following income statements illustrate different cost structures for two competing companies: Income Statements Number of customers (a) Sales revenue (a $200) Variable cost (ax $140) Contribution margin Fixed cost Net income Company Name Hill 200 $40,000 N/A 40,000 (28,000) $12,000 Creek 200 $40,000 (28,000) 12,000 0 $12,000 Required a. Reconstruct Hill's income statement, assuming that it serves 400 customers when it lures 200 customers away from Creek by lowering the sales price to $120 per customer. b. Reconstruct Creek's income statement, assuming that it serves 400 customers when it lures 200 customers away from Hill by lowering the sales price to $120 per customer. Complete this question by entering your answers in the tabs below.
Income Statements. Number of customers (a) Sales revenue (a * $200) Variable cost (ax $140) Contribution margin Fixed cost Net income. HILL COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Required a. Reconstruct Hill's income statement, assuming that it serves 400 customers when it lures 200 customers away from Creek by lowering the sales price to $120 per customer. b. Reconstruct Creek's income statement, assuming that it serves 400 customers when it lures 200 customers away from Hill by lowering the sales price to $120 per customer. Company Name Creek Hill Complete this question by entering your answers in the tabs below. $ 200 $40,000 N/A 40,000 (28,000) $12,000 Required A Required B Reconstruct Hill's income statement, assuming that it serves 400 customers when it lures 200 customers away from Creek by lowering the sales price to $120 per customer. $ $ 200 $40,000 (28,000) 12,000 0 $12,000 200 0 200 200
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Perez Munoz Number of customers (a) 81 81 Sales revenue (a × $250) $ 20,250 $ 20,250 Variable cost (a × $175) N/A (14,175 ) Variable cost (a × $0) 0 N/A Contribution margin 20,250 6,075 Fixed cost (14,175 ) 0 Net income $ 6,075 $ 6,075 Required Reconstruct Perez’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Munoz by lowering the sales price to $150 per customer. Reconstruct Munoz’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Perez by lowering the sales price to $150 per customer.
The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income (a1) Blanc Company Noir Company $505,000 $505,000 303,000 252,500 252,500 242,400 $10,100 * Your answer is incorrect. Blanc Company 202,000 191,900 $10,100 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Noir Company Contribution Margin Ratio 40% 50%
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Baird Adams 88 $ 21,120 (15,840) N/A 88 Number of customers (a) Sales revenue (a X $240) Variable cost (a x $180) Variable cost (a x $0) Contribution margin Fixed cost $ 21,120 N/A 21,120 (15,840) 5,280 Net income $ 5,280 $4 $ 5,280 Required a. Reconstruct Baird's income statement, assuming that it serves 176 customers when it lures 88 customers away from Adams by lowering the sales price to $140 per customer. b. Reconstruct Adams's income statement, assuming that it serves 176 customers when it lures 88 customers away from Baird by lowering the sales price to $140 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Baird's income statement, assuming that it serves 176 customers when it lures 88 customers away from Adams by lowering the sales price to $140 per customer. BAIRD COMPANY Income…
Required information [The following information applies to the questions displayed below.] Information for Pueblo Company follows: Sales Revenue Less: Total Variable Cost Contribution Margin Weighted average CM ratio Product A Product B $ 60,000 $ 31,490 $ 28,510 Required: Determine Pueblo's (overall) weighted-average contribution margin ratio. Note: Do not round intermediate calculations. % $ 57,000 $ 11,800 $ 45,200
Following information is related to Product X of Zempa Company: Current replacement cost Cost to distribute Historical cost Normal profit margin Selling price $230 $42 $215 $36 $245 If lower-of-cost-or-market rule (LCM Rule) is applied, then the value of Product X that would be reported in the balance sheet is: a. $215 b. $230 c. $203 d. $167
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the following four case situations: Unit sold Sales Variable expenses Foxed expenses Operating income (loss) Contribution margin per unit $ Case #1 15,000 180,000 $ 100,000 120,000 50,000 $ $ Case #2 Case #1 Case #3 10,000 Case #2 70,000 $ 32,000 8,000 $ 12,000 $ 10 $ 13 Case #4 b. Assume that more than one product is being sold in each of the following four case situations: (Enter "Contribution margin ratio" in percent. Round your final answers to the nearest whole dollar amount.) Case #3 6,000 300,000 100,000 (10,000) Case #4

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