If Romeo's Racket Ball business has sales for the month of 10,000 racketballs and a racketball sells for $15, what is Romeo's accounting profits per month given the explicit costs below? Rent of $10,000 Utilities of $1,000 Labor costs of $2.50 per racketball Material costs of $2.50 per racketball Executive salaries of $39,000
Q: 8. House of Furniture, Inc., purchases from a well known manufacturer and sells them at the retail…
A: Income statement: It is one of the financial statements prepared by an organization. This statement…
Q: Woody’s Widget Shop has the following information: The average widgethas a sales price of $18; raw…
A: As per the given information: Sales price =$18 Raw materials =$4 Production labor =$8 per hour…
Q: It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $7 a piece. Homer…
A: Working note:
Q: Ibrahim Corporation has the following estimated costs for the year: Direct Materials…
A: Pre-Determined Overhead Rate: Manufacturing overheads are those costs that are incurred indirectly…
Q: For the following annual data of the electrical company producing 25,000 electrical bulbs, calculate…
A:
Q: A manufacturer of vertical blinds purchases raw materials for $17.00 per set of blinds and has a…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Wadena Search and Rescue estimates the monthly cost of responding to emergency calls to be $90,000,…
A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…
Q: Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $…
A: Answer:- Activity variance meaning:- Activity variance can be defined as the disparities between…
Q: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable…
A: Introduction: Contribution margin per unit. Deduction of cost of goods sold from the total sales…
Q: 9. Mohammed AI Harthi owns the Barber Shop. He employs five barbers and pays each a base rate of…
A: Selling price is a price set by the supplier at which he is ready to sell his goods. The cost that…
Q: How many customers and what revenue will the resturant need each month to break even? The monthly…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Campbell Corporation paid one of its sales representatives $5,500 during the month of March. The rep…
A: First, compute the fixed cost as shown below: Total salary cost = $5,500 Variable cost = 140*$11 =…
Q: hour. Your anticipated costs include: Advertising $25 per month Gas $1.50 per hour Depreciation…
A: Operating activities: It refers to the day-to-day activities that help a business in generating…
Q: Java Joe’s operates a chain of coffee shops. The company pays rent of $12,000 per year for each…
A: Rent and salary of manager are Fixed costs, as it does not vary with variation in production volume…
Q: ake’s Roof Repair has provided the following data concerning its costs
A: Activity Variance Statement
Q: Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail…
A: 1. Under Traditional method, the cost of goods sold is deducted from sales revenue to arrive at the…
Q: The following data relate to a company that produces and sells a travel guide that is updated…
A: Contribution margin ratio is the ratio of contribution per unit to sales per unit. It can be…
Q: Java Joe’s operates a chain of coffee shops. The company pays rent of $12,000 per year for each…
A: Fixed cost is the cost which is pre determined and negotiated for the specific duration and does not…
Q: During its first year of operations, Silverman Company paid $14,000 for direct materials and $19,000…
A: Solution: Net operating income is based on the sales revenue for the units sold and manufacturing…
Q: During April, 1000 drives were sold. Fixed costs for April were $6000. How much does Marigold's…
A: Operating income or earnings before income and taxes (EBIT) refers to the profits of an organization…
Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…
A: Income statement as per traditional method is the one that determines the gross profit and net…
Q: A company makes and sells ornamental vases. To make the vases there is a fixed monthly cost of…
A: The Basic Sales Equation is Sales = Variable Cost + Fixed Cost + Profit
Q: Gulf Shore Lawn and Garden Maintenance provides two general outdoor services: lawn maintenance and…
A: Break-even Sales: It is that point of sales at which a total of fixed and variable expenses are…
Q: Repair Shop Co. provides electronic repairs and has the following budget for next year: Repair…
A: The time rate is calculated on the basis of the number of hours used for repairs. Loading charge is…
Q: It costs Furniture's Manufacturing $0.45 to produce baseballs and Furniture sells them for $4.00 a…
A: A Contribution Margin Income Statement is a statement in which revenues and variable costs are…
Q: The cost of goods sold at a restaurant is $5,620 for a week. The labor cost at the restaurant is…
A: Prime Cost:- It is a firm's direct material and labor that are directly involved in the…
Q: Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail…
A: Under Traditional method, the cost of goods sold is deducted from sales revenue to arrive at the…
Q: arwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,482 per…
A: Financial Statement - It is formal records of the financial activities of particular period and…
Q: Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced…
A: Variable Costing: Variable costing is a concept in management accounting that refers to the cost of…
Q: Below is the amount of labor employed by a starting business which makes bags out of recycled…
A: Total cost alludes to the total amount of money spent by a company to create products and services.…
Q: The Silverman Company spent $14,000 on direct supplies and $19,000 on the salary of production…
A: Cash flows income is calculated in relation to sales revenue for the copies delivered, producing…
Q: It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $4.00 a piece.…
A: Total contribution margin = Sales - variable costs
Q: A company that builds and sells desks has a weekly overhead including salaries and plant costs of…
A: Break even point is a level sale where there is no profit and no loss situation. If a company sales…
Q: The Handy Doll Manufacturing Company has the following information:The average doll sales price is…
A: 1)Variable cost = A cost that varies with the level of output. Here :- Raw material per doll = $4…
Q: Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000,…
A: Sales - variable cost = Contribution Contribution - fixed cost = Operating income
Q: Slapshot Company makes ice hockey sticks and sold 1,880 sticks during the month of June at a total…
A: Fixed expenses are those which do not change with the production level.
Q: An orchardist pays apple pickers $10 per hour plus $8 per $100kg of apples picked. If workers pick,…
A: Amount paid to apple picker per hour is $10 Additional amount per 100 kg is $10 Average apple picked…
Q: Slapshot Company makes ice hockey sticks and sold 1,880 sticks during the month of June at a total…
A: The income statement indicates the excess of revenue over its expenditure. The difference between…
Q: Marwik Pianos. Inc purchases pianos from a large manufacturer for an average cost of $1,482 per…
A: Operating profit: It refers to the profit earned by business from its operations after deducting…
Q: Firm X sold 1,000 units of their product last month at a price of $600. If it costs them $300 to…
A: Gross margin=sales- direct expense Direct expense include cost of production
Q: How can I resolve this problem? Marwick’s Pianos, Inc., purchases pianos from a large manufacturer…
A: The traditional income statement is simply deducted all the expenses from the revenue, on the other…
Q: Fanning Corporation paid one of its sales representatives $4,000 during the month of March. The rep…
A: Formula: Total variable cost = Number of units sold x commission on per unit sales.
Q: Roseberg Theater sells tickets for dinner and a show for $60 each. The cost of providing dinner is…
A: Contribution margin = Sales price - variable costs = $60 - $31 = $29 per ticket
Q: Assume that total sales revenue for 2018 is projected to be $1,153,549. Assume also the following…
A: Computation of total cost Packaged cans and bottles + kegs + shrinkage + contract labor + direct…
Q: ABC Company had sold 500 pieces of handbags at 150 pesos each in just one month period. The company…
A: Calculation of Total Sales and Cost of Goods Sold. . Formulas that are used:-
Q: I sell a product for Php 24.75 and fill orders averaging 37 units per day. My cost to produce and…
A: Contribution Margin = Sales Revenue - Variable Cost
Q: A company that makes records have a monthly cost of $7,449 to run their factory. If it costs them…
A: Break even point in units = Fixed costs /Contribution margin per unit where, Contribution margin…
Answer this for me mate. Much appreciated.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
- Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $720,000 in service revenue. Their total cost (fixed and variable) per client was $2,500 and they served 115 clients during the year. If operating expenses for the year were $302,000 what was their net income?Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,000 for the Sleepeze, 12,000 for the Plushette, and 5,000 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at 65,000, a marketing research assistant at 40,000, and an administrative assistant at 25,000) are budgeted for 130,000 next year. b. Depreciation on the offices and equipment is 20,000 per year. c. Office supplies and other expenses total 21,000 per year. d. Advertising has been steady at 20,000 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 15 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. f. Last year, shipping for the Sleepeze and Plushette lines averaged 50 per unit sold. Gene expects the Ultima line to ship for 75 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Prepare a revenue budget for the Sales Division for the coming year for each scenario. 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above.Use the following information for Brief Exercise: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of 612,500. Each coffee maker sold at a price of 100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of 45,000. Administrative expense totaled 47,500. 2-33 Income Statement Percentages Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.)
- Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
- Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.