oghis Do It! Review 6-1 a, b1 Victoria Company reports the following operating results for the month of April. CALCULATOR PR VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (9,000 units) $450,000 $50 Variable costs 225,000 25.00 Contribution margin 225,000 $25.00 175,050 Fixed expenses $49,950 Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs o Management is confident that this change will increase unit sales by 20%. Net income
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- SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…WRITERS' CompanyYr 2018-19Fountain PenBall pointUnits1000020000Area occupied (sq feet)70008000Variable cost – Direct3225Fixed Cost - Direct (per unit)108Rent - Fixed Cost per month (Indirect - common for all products)3,00,000.00The Fixed indirect cost of Rent of Rs 3,00,000/- is to be allocated to both the productsThe company was doing this on the "number of units" basis till now.You have researched and advised Writers' Company to have Activity Based Costing and have gathered data to support the allocation of the Fixed indirect cost as follows :Break-up of Indirect Fixed CostsAllocation basisRent3,00,000Area of operationsb. Please compute cost per unit of each product on the new method of allocationWRITERS' CompanyWriters' Company produces 2 products presentlysignmentMain.do/invoker-takeAssignmentSessionlocator SOW Verbiage-202 022x SST-Emp-List-Emp... SST-SOW-2023. Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price Unit variable cost Total fixed costs O increased by 1015 units Ob. increased by 1.210 units unprogress-false SST-SRY-SOW-202 2023 OneDrive Monthly Invoice-Fil Logine Bell valua $235 $118 $758,000 The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 4%. If sa are held constant, the next break-even point for Flying Cloud Co. will be Od. increased by $12 units
- Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method. INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022:Sales 3 200 unitsSelling price per unit R100Finished products on 01 March 2022 400 unitsProducts manufactured during the month 3 600 unitsVariable manufacturing costs per unit R26Variable selling and administrative costs per unit sold R12Fixed manufacturing costs R25 200Fixed selling and administrative costs R12 400 Additional informationThe variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March2022 was R21.60…Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method. INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022: Sales 3 200 unitsSelling price per unit R100Finished products on 01 March 2022 400 unitsProducts manufactured during the month 3 600 unitsVariable manufacturing costs per unit R26Variable selling and administrative costs per unit sold R12Fixed manufacturing costs R25 200Fixed selling and administrative costs R12 400The following information was extracted from The Cape Adventures T&T Pvt Ltd. The company manufactures a single product. The particulars for February 2023 are as follows: Units manufactured and sold 18 750. Selling price per unit R 100 Manufacturing cost: – Variable R468 750 – Fixed R187 500 Selling and administrative cost: – Variable selling cost (R5,00 per unit) R 93 750 – Fixed selling cost R 50 000 – Fixed administration cost R 12 500 Required: Draft the statement of comprehensive income for the month ended 28 February 2023 according to the: i. direct costing method ii. absorption costing method.
- Draw V Type here to search Read aloud 7-2B-CVP Analysis, "What if?" Analysis Kevin Co.'s projected contribution-format income statement for the upcoming month is shown below: Sales (500 units) Variable expenses Contribution margin local or shared file Fixed expenses Net operating income $10,000 4,000 6,000 1,000 $5,000 Required: a.) Compute the breakeven point in units. b.) Compute the breakeven point in dollars. c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month? d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms. e.) The company's manager thinks that adding a salaried sales staff member at a cost of $2,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change? f.) Refer to the original data, the company's manager believes that a new production process will improve profitability He plans to…Presented here is the income statement for Fairchild Co. for March: Sales $ 81,500 Cost of goods sold 43,000 Gross profit $ 38,500 Operating expenses 31,000 Operating income $ 7,500 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 34%.Required: Rearrange the preceding income statement to the contribution margin format. Calculate operating income if sales volume increases by 10%. Calculate the amount of revenue required for Fairchild to break even. rev: 10_17_2020_QC_CS-236193P7-2A Variable and Absorption Costing---Service Company Jensen's Tailoring provides custom tailoring services. After the company's first year of operations, its owner prepared the following summarized data report for 2019: Sales (500 completed jobs) $ 100,000 Tailoring costs (550 jobs): Direct labor 47,000 Manufacturing overhead: Variable 12,000 Fixed 9,000 Operating expenses: Variable 5,600 Fixed 5,800 Required a. Prepare an income statement based on full absorption costing. (Round ending inventory to the nearest $.) b. Prepare an income statement based on variable costing. (Round ending inventory to the nearest $.) c. Assume that you must decide quickly whether to accept a special one-time order to alter 50 band costumes for $125 per costume. Which income statement presents the most…
- Accounting Gosnell Company produces two products: squares and circles. The projected income for thecoming year, segmented by product line, follows:Squares Circles TotalSales P300,000 P2,500,000 P2,800,000Less: Variable expenses 100,000 500,000 600,000Contribution margin P200,000 P2,000,000 P2,200,000Less: Direct fixed expenses 28,000 1,500,000 1,528,000Product margin P172,000 P 500,000 P 672,000Less: Common fixedexpenses100,000Operating expenses P 572,000The selling prices are P30 for squares and P50 for circles.1. Compute the number of units of each product that must be sold for Gosnell Companyto break even.2. Assume that the marketing manager changes the sales mix of the two products sothat the ratio is three squares to five circles. Repeat Requirement 13. Refer to the original data. Suppose that Gosnell can increase the sales of squares withincreased advertising. The extra advertising would cost an additional P45,000, andsome of the potential purchasers of circles would switch to…Q1Moona Inc. produces Mobile phones. Information of the company's operations last year appear below: Fixed cost: Fixed Manufacturing overhead Rs 40,000Fixed Selling & Administrative Rs 60,000Selling Price per unit Rs 100Variable cost per unit: Direct Materials Rs 30 Direct labor Rs 10Variable Manufacturing overhead Rs 5Variable Selling & Administrative Rs 2Units In beginning Inventory 0 Units Produced 2000Units Sold 1900 Required: a. Compute the unit product cost under both absorption and variable costing.b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.Maggie's Music has three product lines: Vinyl Records, CD's, and 8-Track Tapes.Departmental operating income data for the second quarter are as follows:Maggie's MusicIncome StatementFor the Year Ending December 31, 2020 Vinyl CD 8-Track Total Sales $60,200 $105,400 $38,000 $203,600 Variable Costs $34,700 $73,500 $24,900 $133,100 Contribution Margin $25,500 $31,900 $13,100 $70,500 Fixed Costs $17,800 $19,900 $33,700 $71,400 Operating Income (Loss) $7,700 $12,000 ($20,600) ($900) 1. Managers are concerned by operating losses. They are considering dropping the 8-Track Tape product line. Fixed costs assigned to each department include only fixed costs of that department. Total Fixed cost will not change if the company stops selling 8-Track Tapes.Would you recommend the elimination of 8-Track Tapes? Give supporting computations. 8-Track Tapes Expected change in Revenue Expected change in total Variable Costs Expected change in Operating Income…