In the fiscal year just concluded, the University Shop reported net income of. P4,000,000 on sales of P30,000,000. The variable costs as a percentage of revenues are 70%. What is the amount of fixed costs? 1. P 3,000,000 2. P 5,000,000 3. P 6,600,000 4. P 17,000,000 O 1 O 2 O 3 4

In the fiscal year just concluded, the University Shop reported net income of. P4,000,000 on sales of P30,000,000. The variable costs as a percentage of revenues are 70%. What is the amount of fixed costs? 1. P 3,000,000 2. P 5,000,000 3. P 6,600,000 4. P 17,000,000 O 1 O 2 O 3 4

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

See similar textbooks

Related questions

Q: East Mullett Manufacturing earned operating income last year as shown in the following income…

A: EVA = Net operating profit after tax - (WACC * Captial invested) Net operating profit after tax =…

Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…

A: 1. The margin related to this investment opportunity Particulars Amount Sales $ 420000…

Q: East Mullett Manufacturing earned operating income last year as shown in the following income…

A: Economic value Added = Net Operating Profit After Tax - (Weighted Average Cost of Capital × Capital…

Q: The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost…

A: The preceding year income statement for the year ending March 31 is as follows Sales (200,000 units…

Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…

A: Residual income refers to the income that is left after making all the necessary payments of the…

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: = Residual income =Operating income– { Avg. operating assets x required rate of return (ROI)}…

Q: The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: The contribution format income statement for Huerra Company for last year is given below: Total $…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 11. What is last year’s residual income? 12. What is the residual income of this year’s…

A: Residual Income :— Residual Income is income that one continues to receive after the completion of…

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: ROI is one of the profitability ratio which shows ratio between net operating income with average…

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: Silver Incorporated reported the following results from last year’s operations: Sales $…

A: Return on investment (ROI) :— It is the ratio between net operating income and average operating…

Q: Sales revenue for XYZ Company is $1,000,000. The cost of goods sold is $450,000 and the operating…

A: Thus, the net operating income is $300,000.

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: Lets understand the basics. Return on investment is a net operating income generated by using its…

Q: The contribution margin ratio of Donath Corporation's only product is 65%. The company's monthly…

A: Contribution margin ratio = 65% Fixed expense = $573,300 Target profit = $9,100

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: Profit margin is the percentage of income earned on the sales of a period after deducting the…

Q: a. Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of…

A: Contribution margin = sales - variable costs = $112900000-66611000 = $46,289,000

Q: follow s Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000 Variable…

A: The preceding year income statement for the year ending March 31 is as follows:- Sales (200,000…

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: Investment is the amount of money invested in some kind of securities like bonds, shares or in…

Q: 4. The company issues bonds and uses the proceeds to purchase machinery and equipment that increases…

A: 1. Margin = Net operating income/ Sales 2. Turnover= Sales/ Operating assets 3. ROI = Margin *…

Q: A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000,…

A: Operating profit can be defined as the profit that is earned from the day-to-day operations.

Q: Westerville Company reported the following results from last year's operations: Sales Variable…

A: Net operating income=Contribution-Fixed cost=$420,000×70%-$252,000=$42,000

Q: The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost…

A: Contribution margin per unit = Contribution margin / No. of units sold = Rs. 200,000 / 200,000 = Rs.…

Q: Westerville Company reported the following results from last year's open Sales Variable expenses…

A: Turnover = Sales/Average operating assets

Q: A firm operated at 80% of capacity for the past year, during which fixed costs were $190,000,…

A: Operating profit: Operating profits are the profits earned out of the core business operation. Any…

Q: 9. If the company pursues the investment opportunity and otherwise performs the same as last year,…

A: Return on Investment (ROI) is a measure by which a person calculate the Profitability of the…

Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…

A: Solution... (1). Last year's margin = Net income ÷ sales = $375,000 ÷ $1,500,000 = 0.25 =…

Q: Tennill Inc. has a $1,400,000 investment opportunity with the following characteristics: Sales $…

A: Formula: ROI = Turnover x Margin

Q: Last year, a company reported sales of $715.5k, a contribution margin ratio of 39.25% and a net loss…

A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…

Q: lawn mowers, has a projected income for the coming year as follows: Sales $…

Q: a. Young Company budgets sales of $1,100,000, fixed costs of $37,100, and variable costs of…

A: Contribution margin: Difference between the sales and the variable costs is called contribution…

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: 1. Margin related to this year’s investment opportunity = Net operating income/Sales Net operating…

Q: [The following information applies to the questions displayed below.] Westerville Company reported…

Q: Required information [The following information applies to the questions displayed below.]…

A: Return on investment indicates the percentage of earning the business is gaining from the…

Q: 1. If the company pursues the investment opportunity and otherwise performs the same as last year,…

Q: HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost /…

A: Given: For the preceding year the HASF Ink ltd having the cost/revenue relationship following the…

Q: Salt Corporation's contribution margin ratio is 75% and its fixed monthly expenses are $55,000.…

A: Formula: Net operating income = Contribution margin value - Fixed expenses. Deduction of fixed…

Q: es to the questions displayed below.] Westerville Company reported the following results from last…

Q: Compute the company’s return on investment (ROI) for the period using the ROI formula stated in…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The fixed costs incurred by a automotive shop are $200,000 per year. Variable costs are 60% of the…

A: Variable cost = 60% of annual revenue = $300,000 x 60% = $180,000

Q: Required information [The following information applies to the questions displayed below.]…

Q: Shown as follows is a segmented income statement for Drexel-Hall during the current month.…

A: Contribution margin is the excess of sales revenue over variable costs in the business. Segmented…

Q: 1- what is last years residual income? 2- what is the residual income of this years investment…

A: residual income = Net operating income - Minimum required return in the given question it is said…

Q: Westerville Company reported the following results from last year’s operations: Sales $…

Q: 1. Assume that the contribution margin ratio of the investment opportunity was 65% instead of 70%.…

A: Solution:- 1)Calculations if the contribution margin ratio of the investment opportunity was 65%…

Q: The following information applies to the questions displayed below.] Westerville Company…

A: Margin is calculated by dividing the net operating profits by the total sales.

Q: 6. What is the ROI related to this year’s investment opportunity? (Do not round intermediate…

A: Return of investment (ROI) stands for the Income, as a percentage of the Investment, that a Business…

Q: [The following information applies to the questions displayed below.] Westerville Company reported…

A: Net operating income from investment = Sales x contribution margin ratio - fixed expenses =…

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Question

100%

Can Please Help Me: Accounting

60 minutes only the given time. Wish you could help me.

I will give UPVOTE and GOOD FEEDBACK.

In the fiscal year just concluded, the University Shop reported net income of.
P4,000,000 on sales of P30,000,000. The variable costs as a percentage of
revenues are 70%. What is the amount of fixed costs?
1. P 3,000,000
2. P 5,000,000
3. P 6,600,000
4. P 17,000,000
O 1
O 2
O 3
4

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
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.
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.
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
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.
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000
Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.