It costs Furniture's Manufacturing $0.45 to produce baseballs and Furniture sells them for $4.00 a piece. Furniture pays a sales commission of 5% of sales revenue to his sales staff. Furniture also pays $13,000 a month rent for his factory and store, and also pays $80,000 a month to his staff in addition to the commissions. Furniture sold 71,500 baseballs in June. If Furniture prepares a contribution margin income statement for the month of June, compute his operating income.

Q: Sandhill Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of…

A: The net income is calculated as excess of service revenue over costs incurred.

Q: Boss Company, a manufacturer of headphones, started its production in month of May 2020. Raw…

A: Product cost: The product cost is related to the cost of manufacturing a product. cost per unit =…

Q: Mark Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base salary of…

A: Total unit variable cost per haircut = Commission expense + Utilities expense + Barber supplies…

Q: It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $7 a piece. Homer…

A: Working note:

Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…

A: Break Even Point: Break Even Point is defined as the level where there is no profit and loss. It is…

Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…

A: preparation of traditional format income statement and contribution format income statement for…

Q: Gypsy Joe’s operates a chain of coffee shops. The company pays rent of $10,000 per year for each…

A: Rent and salary of manager is a Fixed cost, since they dont change with change in production volume…

Q: G. Henry is employed by Royal Manufacturers and is paid R250 per hour. His normal working day is 9…

A: Straight piece rate is the plan in which the earnings of the persons employed is computed using the…

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: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary…

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

Q: It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8.00 a piece.…

A: Formula: Contribution margin = Sales revenue - variable cost.

Q: GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: Megan's Bridal Shoppe is a bridal shop that offers wedding gowns. Each outfit sells for $1,000 on…

A: Contribution margin: When the variable cost per unit is subtracted from the selling price per unit,…

Q: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge…

A: Total Cost is that Cost which incurred in production of any product It’s Include Variable Cost &…

Q: Velasco Company required 6 factory workers and 3 maintenance engineers to do annual maintenance on…

A: It is assumed that Good friday and holy thursday are holidays Calculation of Payment made to Factory…

Q: total monthly cost of the sales representative’s salary

A: Fixed cost = Base salary = $4000 Variable cost = Number of units sold * $10 per unit

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: If Romeo's Racket Ball business has sales for the month of 10,000 racketballs and a racketball sells…

A: To derive accounting profit, all the expenses that are directly a part of company's operations are…

Q: 1. Compute the break-even point in meals. 2. Compute the break-even volume in dollars. 3. Compute…

A: 1.  Compute the break-even point in meals. Break-even point in meals = Fixed costs / Contribution…

Q: Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per…

A: 1. Prepare a traditional format income statement for August as shown below:

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: Schoenen Motors is a small car dealership. On average it sells a car for $33,000, which it purchases…

A: Break-even refers to covering all the costs without making a profit. At break-even point company…

Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…

A: The income statement indicates the earning of the particular business in an accounting period. It…

Q: House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail…

A: Income statement represents the net income that is calculated by deducting the expenses from the…

Q: Portable Power Inc. buys portable generators for $470 and sells them for $750. They pay a sales…

A: A contribution margin is an excess value of sales revenue over the variable cost. It is also an…

Q: Seal Financial Advisors provides accounting and finance assistance to customers in the retail…

A: Predetermined overhead rate= Total Expected cost/No. of Hours   Total Expected cost= 755000 No. of…

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: costs approximately $ 60. a. Which order amount would result in the lowest annual purchasing and…

A: Please see the next step for solution:-

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: Major Ltd is a company that produces household goods in various departments. It needs to assess…

A: The total cost of labour includes all wages paid to employees, along with employee compensation and…

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: 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: Discount Cycles is a small company that makes bikes priced at $130 each. There is no quantity…

A: given Sell Price  $      130.00 Material Cost  $         60.00 Labour cost  $         15.00

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: A company makes and sells ornamental vases. To make the vases there is a fixed monthly cost of…

A: Break-even point- It is a point at which a company incurs no losses and earns no profits during a…

Q: At the end of June 2019, Ash Design has spent RM 320,000 on 80,000 meters of fabric in the…

A: >Variances can be understood as a 'difference' between what was actually budgeted and what…

Q: The Monty Corporation has a staff of sales people who are paid a monthly salary of $1,400.00 plus an…

A: The gross pay includes the total salary paid to employees.

Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…

A: Compute the sales levels at which Classical Glasses would prefer to pay a fixed amount of monthly…

Q: Schoenen Motors is a small car dealership. On average, it sells a car for $27,000, which it…

A: Break even point is that point at which there is no profit and no loss and business is recovering…

Q: At the end of June 2019, Ash Design has spent RM 320,000 on 80,000 meters of fabric in the…

A: Variances can be understood as a 'difference' between what was actually budgeted and what actually…

Q: The Monty Corporation has a staff of sales people who are paid a monthly salary of $1,800.00 plus an…

A: Gross pay refers to the payment without the consideration of tax. The gross pay of an individual…

Q: One of the employees of Gokul Dairy, Vishnu Jagannath works for 38 hours in a week, and is paid on…

A: In Gain Sharing bonus plan, bonus is paid on the productivity. No bonus is paid as Vishnu Jaganath…

Q: During August, Marwick’s Pianos, Inc., sold and delivered 56 pianos.   Required: 1. Prepare a…

A: Income Statement of business shows all revenues and expenses of the business for the particular…

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: 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: Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…