Portis, Inc. reported sales of $8,000,000 for the month and incurred variable expens totaling $5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending inventories. A total of 80,000 units were produced and sold last month. (Note that this is the same data that was provided for the previous question.) sales increase by 200 units, what is the expected increase in net operating income? T1 600

Portis, Inc. reported sales of $8,000,000 for the month and incurred variable expens totaling $5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending inventories. A total of 80,000 units were produced and sold last month. (Note that this is the same data that was provided for the previous question.) sales increase by 200 units, what is the expected increase in net operating income? T1 600

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 18MCQ: 2-18 Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year,...

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Company XYZ made total sales of $250,000 during the month of December. The company also incurred total expenses of $210,000. Of that amount 60% was fixed expenses. Company XYZ expects sales to increase by 13% next month. What is the expected operating profit, in ($) value, next month?Select one:a. 45,200b. 61,580c. None of the given answersd. 166,000e. 40,000
Company XYZ made total sales of $250,000 during the month of December. The company also incurred total expenses of $50,000. Of that amount 60% was fixed expenses. Company XYZ expects sales to increase by 16% next month. What is the expected operating profit, in (S) value, next month? Select orie: O a None of the given answers O b. 200,000 O c 230,000 O d. 232,000 O e. 236,800
CASE 1 The following are the information obtained from AMC Company:July August SeptemberCash Sales P24,000 P32,000 P36,000Credit Sales 220,000 300,000 240,000Purchases 180,000 240,000 220,000Operating Expenses 30,000 36,000 32,000Interest Expense - 4,000 -Credit sales are collected 50% in the month of sale, 40% in the month following, 8% in the second monthfollowing, and 2% uncollectible. Credit sales for May and June are expected to be P200,000 and P180,000,respectively. Purchases of merchandise, all on account, are paid 60% in the month of purchase and 40% in themonth following. Purchases for June are estimated at P160,000. Expenses include depreciation of P4,000monthly and are paid in the month incurred. The cash balance on June 30, 201A is P54,000.Required: Prepare a cash budget by month for the quarter ending September 30, 201A. Support your solutionwith schedules of cash receipts and cash payments CASE 2 Sanchez Company, a wholesaler, budgeted the following sales for the…
Company XYZ made total sales of $250,000 during the month of December.The company also incurred total expenses of $170,000. Of that amount 60% was fixed expenses . Compay XYZ expect sales to increase by 11% next month .What is the expected operating profit, in ($) value , next month ? a) 100,020b) 88,800c) none of the given answersd) 80,000e) 182,000
2-18 Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. Refer to the information for Barnard Company on the previous page. Operating income is a. 34,000. b. 110,000. c. 234,000. d. 270,000. e. 74,000.
Use the following information for Brief Exercise: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of 612,500. Each coffee maker sold at a price of 100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of 45,000. Administrative expense totaled 47,500. 2-33 Income Statement Percentages Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.)
Sales mix and margin of safety Use the data from E11-20. assume that 31.500 units of digital game players and 13.500 computer tablets were sold in the current year. Assuming no change in the sales mix, determine the following for Northwest Technology Inc. Round to one decimal place. Margin of safely for game players expressed as (a) units sold, (b) sales dollars, and (c) a percentage.
The Specter Company is a merchandising firm that sells a single product. The company'srevenues and expenses for the last three months are given below:April May JuneSales in units 4,500 5,250 6,000Sales revenue $630,000 $735,000 $840,000Less cost ofgoods sold252,000 294,000 336,000Gross Margin 378,000 441,000 504,000Less operatingexpenses:Shippingexpense56,000 63,500 71,000Advertisingexpense70,000 70,000 70,000Salaries andcommissions143,000 161,750 180,500Insuranceexpense9,000 9,000 9,000Depreciationexpense42,000 42,000 42,000Total operatingexpenses320,000 346,250 372,500Net income $58,000 $94,750 $131,500Required:a. Determine which expenses are mixed and, by use of the high-low method, separate eachmixed expense into its variable and fixed components. State the cost formula for eachmixed expense. All calculations must be shown. b. Compute the company's total contribution margin for May. Calculation must be shown
14. Micky2, Inc. sells two products X and Y. Data concerning the company for July follow: Product X: sales - P200,000; variable expense - P50,000; and traceable fixed expenses - P80,000. For Product Y: sales - P300,000, variable expenses - P100,000 and traceable fixed expenses - P150,000. In addition there were common fixed expenses of P70,000 in July. What was the entire company's net income ? P50,000 P70,000 P150,000 P120,000
Biblio Files CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8 Sales $379,000 Variable costs: Manufacturing expense $151,600 Selling expense 15,160 Administrative expense 60,640 (227,400) Contribution margin $151,600 Fixed costs: Manufacturing expense $76,750 Selling expense 8,000 Administrative expense 10,000 (94,750) Operating income $56,850 Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type ofBookshelf Sales Priceper Unit Variable Costper Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called…
Biblio Files CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8 Sales $379,000 Variable costs: Manufacturing expense $151,600 Selling expense 15,160 Administrative expense 60,640 (227,400) Contribution margin $151,600 Fixed costs: Manufacturing expense $76,750 Selling expense 8,000 Administrative expense 10,000 (94,750) Operating income $56,850 Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type ofBookshelf Sales Priceper Unit Variable Costper Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called…
4. The purchases of Chicken Wings Inc. during the year are as follows: 1st quarter- P1,368,000 2nd quarter- P1,320,000 3rd quarter- P2,175,000 4th quarter- P840,000 The entity’s physical count revealed the following balances of cost and NRV, respectively: January 1- P20,000; P19,000 June 30- P40,000; P38,500 December 31- P35,000; P34,600 The gross profit ratio for the year is 35%. If the company uses the allowance method, how much is the loss on inventory write-down to be recognized in the 2nd quarter?