Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses $ 15,000 9,000 6, 000 3,120 $ 2,880 Net operating income 2. What is the contribution margin ratio? Contribution margin ratio
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Variable costs: These are the costs that proportionately change with the changes in the activity…
Q: [The following information applies to the questions displayed below.] Oslo Company prepared the…
A: Degree of operating leverage = Contribution / Operating income
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Answer 1. Contribution margin per unit = Total contribution / No. of units = 8000 / 1000 = 8 per…
Q: Wight Corporation has provided its contribution format income statement for June. The company…
A: Contribution margin = Sales - variable cost = $193,200 - $87400 =$105,800 Contribution margin per…
Q: income statement based on a sales volume of 1,000 units (the relevant range of production is 500…
A: The operating leverage is calculated as contribution margin divided by EBIT.
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution margin per unit is determined by subtracting the variable cost per unit less the sales…
Q: Ehrlich Enterprises prepared the following contribution format income statement based on a sales…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…
Q: Glannini Inc., which produces and sells a single product, has provVided the following contribution…
A: The income statement determines the net income of the business by subtracting the total expenses…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Since you have asked a question with multiple sub parts, we will answer the first 3 sub parts for…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin ratio = (Contribution margin / sales) x 100 = (13500/45000)*100 = 30%
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution is the amount of earnings left after deducting all direct costs from the revenue from…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The operating leverage indicates a level at which the business entity can increase its income by…
Q: 5. Oslo Company prepared the following contribution format income statement based on a sales volume…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Operating income: Income statement reports revenues and expenses from business operations, and the…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Net operating income: In a contribution format income statement, when the fixed expense is deducted…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: Cabrera Enterprises, a company that produces and sells a single product has provided its…
A: Solution: Contribution margin per unit = Contribution margin / Nos of units = $813,750 / 52500 =…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Cost accounting is one of the branches of accounting. Under this branch, all types of costs and…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The change in operating income owing to a change in sales is measured by the degree of operating…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Formula: Degree of operating leverage = Contribution margin / Net operating income.
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break even point is computed by dividing the fixed cost by contribution per unit. Fixed cost=$2250…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The margin of safety is the excess value of the amount the firm earns over its break-even sales. It…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin per unit is the difference between selling price per unit and variable cost per…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: The contribution margin income statement is prepared by deducting the amount of variable expenses…
Q: The contribution margin that the company would disclose on an absorption-costing income statement…
A: Total variable cost = Variable production cost + variable selling and admin cost = 4 + 1 = P5 per…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution margin: Difference between the sales and the variable costs is called contribution…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
Q: Giannini Inc., which produces and sells a single product, has provided the following contribution…
A: Given : Sales (5000 units) 320,000 Variable expenses 150,000 Contribution margin…
Q: The following information comes from the companies accounting records at a sales level of $50,000…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: slo Company prepared the following contribution format income statement based on a sales volume of…
A: Variable Cost - The total cost of production of a good comprises of the total fixed cost of…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Contribution Margin Ratio: When a company's revenues exceed its variable expenses, the difference is…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution: The term contribution or contribution margin in costing is the sales less variable…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage = Contribution margin / Net operating income = $35000/4900 = 7.14
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Wight Corporation has provided its contribution format income statement for June. The company…
A: The question is based on the concept of Cost Accounting.
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Break-even point is that point at which a company is making no profit no loss. In other words at…
Q: Kelchner Corporation has provided the following contribution format income statement. Assume that…
A: Contribution margin ratio = contribution margin / sales
Q: ! Required information [The following information applies to the questions displayed below] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Information given in the question is as follows: Sales $ 30,000 Variable expenses 16,500…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution - fixed cost =profit
Q: Cassius Corporation has provided the following contribution format income statement. Assume that the…
A: Contribution Margin: Contribution margin is the excess of selling price over the variable costs of a…
Q: [The following information applies to the questions displayed below.] Oslo Company prepared the…
A: Contribution margin is the difference between the sales revenue and variable cost and in other words…
Q: Rovinsky Corporation, a company that produces and sells a single product, has provided its…
A: Net Income of the business will be calculated by deducting fixed costs of business from contribution…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The degree of operating leverage can be defined as the accounting measure that is used to identify…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Degree of operating leverage = Contribution margin/Net operating income
Q: Ehrlich Enterprises prepared the following contribution format income statement based on a sales…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…
Q: Sealtek Inc has provided its contribution format income statement data below for September Sales…
A: Contribution indicates the amount available to recover the fixed cost and priofit. It can be…
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- Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.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.Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.
- Jester Company had unit contribution margin on 3.60 and fixed costs of 29,664. Income was 2,520. What was the margin of safety in units? a. 630 b. 700 c. 8,940 d. 7,540Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: Assume that 8,500 million of cost of goods sold and 4,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Also, assume that 30% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. b. Explain the difference between the amount of operating income reported under the absorption costing and variable costing concepts. Round numbers to nearest million.
- Quality Cost Report Whitley Company had total sales of 1,000,000 for the year ending 20X1. The costs of quality are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
- Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?