Feather Friends, Ic., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: $ 2,000,000 1,000,000 1,000,000 180,000 820,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 48,000 units and $3,840,đoo, respectively. If the fixed expenses do not
Q: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar…
A: " As the question has more than 3 sub-parts, the first 3 sub-parts are answered. If you want answer…
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per…
A: Solution 1: Sales Price 80 Less: Variable cost per unit 40 Contribution Margin per unit 40…
Q: Soft Feathers, Inc., distributes a high-quality wooden birdhourse that sells for PhP1,000 per unit.…
A: Solution providing below
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit.…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Answer each question independently based on the original data: 5. The sales manager is convinced…
A: Basically, we need to analyse changes in operating income due to changes in selling prices,…
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit.…
A: Number of units sold = Sales / Selling Price per unit Contribution Margin Ratio = Contribution…
Q: ou are the Chief Financial Officer of Max Gifts Company. A small company that sells Italian…
A: Contribution margin per unit = Contribution margin/ Number of units sold…
Q: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar…
A: Contribution Margin is the excess of revenue over variable cost i.e. Contribution Margin= Sales…
Q: tratford Company distributes a lightweight lawn chair that sells for $15 per unit. Variable expenses…
A: 1) Calculate the contribution margin and the contribution margin ratio. The unit contribution…
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per…
A: Lets understand the basics. Contribution margin ratio is a ratio which indicates the contribution…
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit.…
A: Break-even analysis is a technique used widely by the production management. It helps to determine…
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: product's CM ratio?
A: Contribution margin = Sale price per unit - Variable cost per unit Contribution margin ratio =…
Q: KPR manufactures installs lawn sod in home yards. The company’s most recent monthly contribution…
A: Degree of operating leverage = Contribution margin / Net operating income
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per…
A: Solution:- 3)Calculation of the net operating income If this year’s unit sales and total sales…
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A: preparation of contribution margin income statement are as follows
Q: You are the Chief Financial Officer of Max Gifts Company. A small company that sells Italian…
A:
Q: Markham Farms reports the following contribution margin income statement data for the month of…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit.…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: You are the Chief Financial Officer of Max Gifts Company. A small company that sells Italian…
A: Contribution margin is the sales revenue over and above it's variable costs. Contribution margin =…
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit.…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit.…
A: Since, you have specifically asked for 5 and 6 part, so we will answer the same for you.
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…
A: Solution 1: Sales Price 20 Less: Variable cost per unit 8 Contribution Margin per unit 12…
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per…
A: We know that, Contribution margin ratio = contribution / sales *100 Break even point = Fixed cost /…
Q: Garston Company produces a single model wind turbine and has an annual plant capacity of 3,000…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Last year Hever Inc. had sales of $1,000,000, based on a unit selling price of $400. The variable…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each…
A: Contribution Margin = Sales - Variable Cost Margin of Safety = Actual revenue - Breakeven revenue
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit.…
A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…
Q: Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.40 each. Its variable cost is…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit.…
A: No of units sales ($2240000 / $80) 28000 Units If Selling price reduced by 11% per unit, combined…
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per…
A: Break even point = Fixed expenses / Contribution margin ratio where, Contribution margin ratio =…
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per…
A: Given that, Selling price per unit = $80 Variable cost per unit = $40 Fixed cost = $160000…
Q: Roadside Inc. manufactures the Megalite, and is reviewing the product's cost structure. Accounting…
A: Contribution margin is the excess of selling price over and above the variable cost.
Q: Soft Feathers, Inc., distributes a high-quality wooden birdhourse that sells for PhP1,000 per unit.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
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A: Contribution margin ratio is calculation of contribution margin. Its calculated by diving the…
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A: The break even sales are the sales where business earns no profit no loss during the period.
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit.…
A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit.…
A: 4) a. Operating leverage shows the the percentage of change in net income due a change in revenue of…
Q: Stratford Company distributes a lightweight lawn chair that sells for $30 per unit. Variable…
A: Break even point in units = Fixed costs / Contribution margin per unit Where,…
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per…
A: Lets start with basic understanding. Degree of operating leverage indicates how much net operating…
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A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per…
A: You have asked multiple sub-parts under a single question. We are authorized to answer 3 sub-parts…
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A: Contribution margin is calculated by deducting variable expense from the selling price. This may be…
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…
A:
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A: Contribution margin: It is the difference between the sale value and the variable cost. When we…
Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit.…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: eather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit.…
A: Operating leverage is a financial measure which helps to determine the percentage change in…
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- Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 2,160,000 Variable expenses 1,080,000 Contribution margin 1,080,000 Fixed expenses 160,000 Net operating income $ 920,000 Required: Answer each question independently based on the original data: 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 14%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 11% reduction in the selling price, combined with a $72,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income…Tutor, Incorporated (TI) provides instructional services to its customers. TI charges $240 per student. The Company expects to serve 700 students during the coming year. All of the Company's expenses are fixed. Total annual fixed costs are projected to be $80,000. If the estimated number of students decreases by 10%, net income willEOQ for manufacturer. Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40.
- Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing Calculate Sk8’s annual relevant carrying costs for the EOQSk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing.Calculate Sk8’s annual relevant ordering costs for the EOQ .1. University Catering sells 50 pound bags of popcorn in the university dormitories for P10 abag. Fixed cost of this operation are P80,000 while variable costs of the popcorn are P.10per pound.a. What is the BEP in bags?b. Calculate the EBIT or loss on 12,000 bags and 25,000 bags.c. Calculate the EBIT or loss on 25,000 bags.
- Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing.Jill’s Custom Bags manufacturers and sells 12,000 customer designer bags per year, each requiring three yards of a specially manufactured fabric. These bags are sold evenly throughout the year. The materials for these bags require two months’ lead time. Jill desires to maintain a safety stock of sufficient material to meet one month’s demand. What is Jill’s reorder point?a. 3,000b. 6,000c. 9,000d. 12,000Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales $ 1,040,000 Variable expenses 520,000 Contribution margin 520,000 Fixed expenses 200,000 Net operating income $ 320,000 Required: Answer each question independently based on the original data: 5. The sales manager is convinced that a 15% reduction in the selling price, combined with a $79,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.50 per unit. He…
- Assume Hairy-Cairy Salon, a hair styling salon in Matthews, NC, provides cuts, perms, and hairstyling services. Annual fixed costs are $225,000, and variable costs are 40 percent of sales revenue. Sales revenue totaled $450,000. Determine the sales dollar volume required for an annual pretax profit of $200,000.Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales $ 3,240,000 Variable expenses 1,620,000 Contribution margin 1,620,000 Fixed expenses 180,000 Net operating income $ 1,440,000 Required: Answer each question independently based on the original data: 1. The sales manager is convinced that a 12% reduction in the selling price, combined with a $71,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 2. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.20 per unit. He…Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,000 shirts to break-even. The after tax net income last year was $5,040. Donnelly's expectations for the coming year include the following: (CMA adapted) ∙ The sales price of the T-shirts will be $10. ∙ Variable cost to manufacture will increase by one-third. ∙ Fixed costs will increase by 10%. ∙ The income tax rate of 40% will be unchanged. Based on a $10 selling price per unit and if Dorcan Corporation wishes to earn $37,800 in after tax net income for the coming year, the company's sales volume in dollars must be: $257,625. $213,750. $207,000. $255,000.