Please answer the blank areas including total expenses, income from operations, what is the expected margin of safety in dollars and as a percentage of sales (if required , round the percent to one decimal place) and determine the operating leverage . Thx ( please provide explanations). Sales2,880,000Cost of goods sold:Direct materials600,000Direct labor360,000Factory overhead422,0001,382,000Cost of goods soldGross profit1,498,000Expenses:Selling expenses:Sales salaries and commissionsAdvertising116,000Travel4,000Miscellaneous selling expenseTotal selling expensesAdministrative expenses:Office and officers' salaries325,000SuppliesMiscellaneous administrative expenseTotal administrative expensesTotal evnenses100%99+PrtScInsertDeleteFOF10F11F12&BackspaceNumLock8.Y EstimatedEstimated Variable CostFixed Cost(per unit sold)Production costs:Direct materials$50.00Direct labor30.00Factory overhead$350,0006.00Selling expenses:Sales salaries and commissions340,0004.00Advertising116,000Travel4,000Miscellaneous selling expense2,3001.00Administrative expenses:Office and officers' salaries325,000Supplies6,0004.00Miscellaneous administrative expense8,7001.00Total$1,152,000$96.00It is expected that 12,000 units will be sold at a price of $240 a unit, Maximum sales within the relevant rang18,000 units.Required:1. Prepare an estimated income statement for 20Y7.99+100%PriScInsertDaleteF9F10FIIF12BackspaceNum9Lock

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nswer the blank areas including total expenses, income from operations, what is the expected margin of safety in dollars and as a percentage of sales (if required , round the percent to one decimal place) and determine the operating leverage

nswer the blank areas including total expenses, income from operations, what is the expected margin of safety in dollars and as a percentage of sales (if required , round the percent to one decimal place) and determine the operating leverage

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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Question

Please answer the blank areas including total expenses, income from operations, what is the expected margin of safety in dollars and as a percentage of sales (if required , round the percent to one decimal place) and determine the operating leverage . Thx ( please provide explanations).

Sales
2,880,000
Cost of goods sold:
Direct materials
600,000
Direct labor
360,000
Factory overhead
422,000
1,382,000
Cost of goods sold
Gross profit
1,498,000
Expenses:
Selling expenses:
Sales salaries and commissions
Advertising
116,000
Travel
4,000
Miscellaneous selling expense
Total selling expenses
Administrative expenses:
Office and officers' salaries
325,000
Supplies
Miscellaneous administrative expense
Total administrative expenses
Total evnenses
100%
99+
PrtSc
Insert
Delete
FO
F10
F11
F12
&
Backspace
Num
Lock
8.
Y

Estimated
Estimated Variable Cost
Fixed Cost
(per unit sold)
Production costs:
Direct materials
$50.00
Direct labor
30.00
Factory overhead
$350,000
6.00
Selling expenses:
Sales salaries and commissions
340,000
4.00
Advertising
116,000
Travel
4,000
Miscellaneous selling expense
2,300
1.00
Administrative expenses:
Office and officers' salaries
325,000
Supplies
6,000
4.00
Miscellaneous administrative expense
8,700
1.00
Total
$1,152,000
$96.00
It is expected that 12,000 units will be sold at a price of $240 a unit, Maximum sales within the relevant rang
18,000 units.
Required:
1. Prepare an estimated income statement for 20Y7.
99+
100%
PriSc
Insert
Dalete
F9
F10
FII
F12
Backspace
Num
9
Lock

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