Righteous Company recorded operating data for its shoe division for the year. The company's desired return is 5%. P500,000 100,000 60,000 200,000 Sales Contribution margin Total direct fixed costs Average total operating assets
Q: Rhein Manufacturing recorded operating data for its auto accessories division for the year. $750,000…
A: Given: Sales = $750,000 Contribution margin = $230,000 Total direct fixed costs = $90,000 Average…
Q: East Mullett Manufacturing earned operating income last year as shown in the following income…
A: EVA = Net operating profit after tax - (WACC * Captial invested) Net operating profit after tax =…
Q: East Mullett Manufacturing earned operating income last year as shown in the following income…
A: Economic value Added = Net Operating Profit After Tax - (Weighted Average Cost of Capital × Capital…
Q: Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is…
A: Break-even analysis is a technique used widely by production management. It helps to determine the…
Q: Singh Co. reports a contribution margin of $960,000 and fixed costs of $720,000. (1) Compute the…
A: Net income = Contribution margin - Fixed costs = $960,000 - $720,000 = $240,000
Q: Data from a company's last period of operations shows sales of 2,000 units, total contribution…
A: Contribution margin: It refers to the total amount of earnings available to company to cover its…
Q: Following is the last year data of X company: Selling price Variable expenses S80 per unit $40 per…
A: Advertising expenses may be defined as that type of indirect expenses which occurs during the…
Q: Zekrom Corporation recorded the following information last year: Sales of ₱450,000; Net operating…
A: The degree of operating leverage (DOL) is calculated as ratio of contribution and operating income
Q: Smart company Sold 11,000 softwares during current year For $440,000 , Variable costs are $110,000…
A: The contribution margin is calculated as difference between sales revenue and variable costs.
Q: 2. Last month when Pantok Creations Inc. sold 40,000 units, total sales were P300,000, total…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: Jasin Company projected operating income (based on sales of 450,000 units) for the coming year as…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: 4. The company issues bonds and uses the proceeds to purchase machinery and equipment that increases…
A: 1. Margin = Net operating income/ Sales 2. Turnover= Sales/ Operating assets 3. ROI = Margin *…
Q: Computing and Using the CM Ratio Last month when Holiday Creations, Inc., sold 50,000 units, total…
A:
Q: A company provided the following results from It's operations: Total Sales $400,000 Variable…
A: Lets understand the basics. Contribution margin is a margin generated from sales. Contribution…
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: Requirement 1: Prepare a contribution income statement.
Q: Allana recorded operating data for its Xyza division for the year. The company requires its return…
A: Controllable margin means contribution margin after deduction of fixed cost. Return on investment is…
Q: Spare parts Division of Toyota Company reported the following data last year: Return on investment…
A: Given:
Q: Westerville Company reported the following results from last year's open Sales Variable expenses…
A: Turnover = Sales/Average operating assets
Q: Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total…
A: Contribution margin ratio is the ratio indicating the percentage of the amount earned from sales…
Q: The contribution format income statement for Huerra Company for last year is given below:…
A: Margin percentage is computed by dividing the net profit by sales. Turnover means the net sales of…
Q: Statement of Comprehensive Income for Brooklyn Company for the current year is Sales Variable cost…
A: Leverage: It can be defined as the technique of making use of borrowed funds by the business in its…
Q: BR Company has a contribution margin of 15%. Sales are $633,000, net operating income is $94,950,…
A: ROI = Net operating income / Average operating assets
Q: Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total…
A: Total contribution margin = Sales - Total variable expenses Contribution margin ratio = Total…
Q: Jasin Company projected operating income (based on sales of 450,000 units) for the coming year as…
A: Break-Even point in sales revenue = Fixed cost/Contribution margin ratio
Q: Required information [The following information applies to the questions displayed below.]…
A: Return on investment indicates the percentage of earning the business is gaining from the…
Q: Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is…
A: New sales = Current sales + Current sales x 10% = $11700,000 + $11700,000 x 10% = $12,870,000 New…
Q: Best Sleep Company reported the following results from last year's operations: Sales $ 1,500,000…
A: Net operating income (investment opportunity)=Contribution-Fixed cost=$240,000×70%-$144,000=$24,000
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: Contribution Margin: It is the aggregate amount of revenue that is available after total expenses…
Q: Quest's return on investment is A. 10.0% B. 13.3% C. 27.5% D. 30.0%
A: The following information pertains to Co.'s Gold Division for the year just ended: Sales…
Q: Required information [The following information applies to the questions displayed below.] The…
A: 1. Residual Income - Residual income is income that one continues to receive after the completion of…
Q: Statement of Comprehensive Income for Brooklyn Company for the current year is Sales P750,000…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense…
A: Marginal income is the difference between sales revenue and variable costs. Net profit or loss is…
Q: The contribution format income statement for Huerra Company for last year is given below: Total Unit…
A: A financial ratio that calculates the value an investor receives in comparison to the cost of their…
Q: The contribution format income statement for Huerra Company for last year is given below: Total Unit…
A: Solution 1: Particulars Amount Sales $998,000.00 Operating income $80,000.00 Average…
Q: 5. As a result of a more intense effort by sales people, sales are increased by 10%; operating…
A: 1. The Margin, Turnover and ROI is calculated without considering the adjustments. 2. The above is…
Q: Hudson Company reports the following contribution margin income statement. HUDSON COMPANY…
A: The margin of safety is the amount of profitability that results from the difference between the…
Q: The contribution format income statement for Huerra Company for last year is given below:…
A: ROI formula in terms of Margin &Turnover is as follows --…
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: The calculation of contribution margin has been made as follows: Contribution margin=Sales-Variable…
Q: The contribution format income statement for Huerra Company for last year is given below:…
A: Margin = Net operating income (NOI ) / Sales Turnover = ( Sales / Operating assets ) ROI = NOI /…
Q: Green Valley Corp.'s contribution format income statement for the most recent month follows: Sales…
A: Degree of operating leverage = Contribution margin / Net operating income
Q: A company sold 25,000 units of product last year. The contribution margin per unit was ₱2, and fixed…
A: Profit earned in last year = Number of units sold * Contribution margin per unit - Fixed expenses =…
Q: Whirly Corporation’s most recent income statement is shown below:Total Per UnitSales (10,000 units)…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: Dogs R Us has two product lines: collars and leashes. Income statement data forecasted for next year…
A: Given: Contribution margin of Leashes =$30000Fixed cost eliminated by dropping Leashes =$21584
Q: Required information [The following information applies to the questions displayed below.]…
A: Net operating income from investment = Sales x contribution margin ratio - fixed expenses =…
Q: Information concerning a company's products is as follows: Sales, $300,000; Variable costs,…
A: Answer) Calculation of Net Operating Income if Sales is $ 375,000 Net operating Income = (Sales X…
Q: Flamengo Co is a sporting goods manufacturing. Last year, report the following Income Statement:…
A: In this question, we have been asked to find out the return on investment, for which we have been…
Q: Last month when Simple Creations, Inc., sold 50,000 units, total sales were P200,000, total variable…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Solano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of…
A: Residual income - Residual income means income earned even if the process to generate those income…
Q: e 360,000 7.20 Income taxes @ 30% 108,000 2.16 Net income $ 252,000 $ 5.04 The company…
A: Profit margin is the ratio of Net Income to Sales of the company. Asset turnover ratio is the ratio…
Which one of the following reflects the controllable margin for the year?
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- 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.Bradshaw Company reported sales of 5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1), the following quality costs were reported: Required: 1. Prepare a quality cost report. 2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution. 3. Assuming sales of 5,000,000, by how much would profits increase if quality improves so that quality costs are only 3% of sales?Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: It is expected that 12,000 units will be sold at a price of 240 a unit. Maximum sales within the relevant range are 18,000 units. Instructions 1. Prepare an estimated income statement for 20Y7. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-even sales. 5. What is the expected margin of safety in dollars and as a percentage of sales? (Round to one decimal place.) 6. Determine the operating leverage.
- 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.Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600000. What is the return on investment for Division A? A. 20% B. 25% C. 33% D. 40%
- 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.Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.Evans Company had total sales of 3,000,000 for fiscal 20x5. 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. 3. What if, five years from now, quality costs are 7.5 percent of sales, with control costs being 65 percent of the total quality costs? What would your conclusion be?
- Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.Kang Company reported sales of 3,240,000 in 20x5. At the end of the calendar year, the following quality costs were reported: Required: 1. Prepare a quality cost report. 2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution.