Answered: Sales 200,000 Variable expenses 140,000…

Business

Accounting

Sales 200,000 Variable expenses 140,000 Fixed expenses 100,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 29E

See similar textbooks

Related questions

Q: Cullumber Company's break-even point in sales dollars is $650,000. Assuming fixed costs are…

A: Sales revenue needed to earn target net income = (Fixed costs + target net income) / Contribution…

Q: Spice Inc.'s unit selling price is $46, the unit variable costs are $31, fixed costs are $106,000,…

A: Values given in the question Unit selling Price = $46 Unit variable cost = $31 Contribution per…

Q: Total Sales revenue (30,000 units) $750,000 Variable costs 450,000 Contribution margin 300,000 ?…

A: Break-Even Point: Your company has reached its break-even point when its entire expenses and total…

Q: Eva Freight Forwarding Company has estimated the following amounts for its next year: Total fixed…

A: Breakeven point is that point at which business is recovering its fixed costs and variable costs…

Q: he condensed income statement for a business for the past year is as follows: Product…

A: Product A is currently providing a loss of $ 25,000 to the company. It is because its total costs…

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: Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and…

A: Break-even analysis is used to measure the required sale to recover its total cost.It can be…

Q: aughn Machines has four product lines, one of which reflects the following results: Sales $220000…

A: The net income by variable costing method is calculated by deducting the variable cost and fixed…

Q: f sales are $425,000, variable costs are 62% of sales, and operating income is $50,000, what is the…

A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…

Q: Manor Homes plans to discontinue a segment which last year generated a contribution margin of…

A: The fixed cost which is not avoidable is the costs that are incurred even if the segment is…

Q: If sales reduce to half of the amount in the next month, what is the projected operating income?…

A: Current Sales = $40000 Sales reduces to half in next month. Next Month Sales = $20000 Variable Cost…

Q: Bryson Company's western territory's forecasted income statement for the upcoming year is as…

A: The differential analysis is performed when two alternatives are available with the organisation.

Q: A study has been conducted to determine if Product A should be dropped. Sales of the product total…

A: Avoidable fixed expenses = total fixed expenses - applied fixed expenses = 210000-60000 = $150,000

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: Salter Inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $125,000,…

A: Calculate the contribution margin per unit as follows: Contribution margin = Selling price -…

Q: sales = 950,000, variable costs = 450,000, and fixed costs = 310,000. if an addition is offered to a…

A: Calculation of Income before Additions Particulars Amount ($) Sales 950,000 Less: Variable…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Profit = Sales - Variable Cost - Fixed Cost

Q: Marston Company sells a single product at a sales price of $50 per unit. Fixed costs total $15,000…

Q: Olinde Electronics Inc. producesstereo components that sell at P= $100 per unit. Olinde’s fixed…

Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…

A: Note: As per our guidelines, only the first three subparts will be solved. Variable element…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Net profit is calculated by deducting fixed costs from the contribution margin amount

Q: Sales (150,000 @ P30) Cost of Goods Sold: 4,500,000 1,050,000 1,500,000 450,000 Materials Labor…

A: Given:

Q: Kuzio Corporation produces and sells a single product. Data concerning that product appear below:…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Georgia Co. plans to discontinue a department that has a $49,000 contribution margin and $96,000 of…

A: Given, Contribution margin = $ 49000 Total Fixed Costs = $ 96000 Unavoidable FC = $ 42000…

Q: a. What is the company's variable cost ratio b. How much is fixed costs of the new BES level?

A: Break even point = Fixed cost/ PV ratio. PV ratio = Sales - Cost to volume ratio. In…

Q: The following information relates to Your Corporation. It produced and sold 50,000 units last month.…

A: Contribution margin: Contribution margin represents the aggregate value of sales revenue present…

Q: Company A reported the following results for 2021: Sales $4,000,000 Variable costs 3,200,000…

A: Calculation of net income for 2021 : Particulars Amount Sales $4,000,000 Less : Variable…

Q: Variable costs as a percentage of sales for Lemon Inc. are 73%, current sales are $647,000, and…

A: Increase in operating income = ( Increase in sales * Contribution margin ratio ) - Increase in fixed…

Q: Davidson company has sales of 100,000 variable cost of goods sold od $40,000 variables seeing…

A: Contribution Margin: The contribution margin is the difference between a product's selling price…

Q: Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and…

A: Contribution margin ratio = 100% - variable costs as a percentage of sales = 100% - 80% = 20%

Q: Your Company plans to discontinue a department that has a contribution margin of $22,000 and $50,000…

A: Avoidable fixed costs = fixed costs x (100%-42%) = $50,000 x 58% = $29,000

Q: Booth Company had sales in 2020 of $1,875,000 on 75,000 units. Variable costs totaled $1,125,000 and…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: The contribution margin ratio is 25% for Company A and the break-even point in sales is $260,000. If…

A: The break even sales are calculated as fixed cost divided by contribution margin ratio.

Q: Fido Company has three segments, one of which is unprofitable. The Duchess Doggy Biscuit segment had…

A: Calculate the amount of net loss after elimination:

Q: Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable…

A: The measurement of net operating income (NOI) is used to assess the viability of income-generating…

Q: Hughes Printing and Publishing has sales of $1,350,000. Its variable costs are $597,000, fixed costs…

A: Answer) Calculation of Increase in Return on Investment due reduction in Variable Cost Increase in…

Q: Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $610,000. and…

A: Increase (decrease) in income = Increase in Sales x Contribution margin ratio where, Contribution…

Q: A company has three product lines, one of which has the following results: Sales $214000 Variable…

A: Income statement shows the net income or net loss calculated by deducting the expenses from the…

Q: How much will operating income change if sales increase by 5,800 units?

A: Answer: Option b.

Q: Alvarez Company is considering the following alternatives: Alternative A Alternative B Revenues…

A: Lets first understand the meaning of relevant revenue. " Relevant revenue is a revenue which is…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: given that, Increase in sales = $15000 Contribution margin ratio = 60% Fixed cost increase by $2500…

Q: The contribution margin ratio is 20% for Grain Company and the break-even point in sales is…

A: To arrive at a contribution margin (CM), an income statement with variable costs deducted from sales…

Q: Prepare a projected CVP income statement for 2020 assuming the changes have not been made

A: Solution:- Preparation of projected CVP income statement for 2020 assuming the changes have not been…

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: Below is the condensed income statement for Jay Tools for the past year: Product T1 T2…

A: Net income is the income which is computed by reducing all the operating expenses from the gross…

Q: The following information relates to Al Samah Company for April 2021: Sales $ 20,000 Less: Variable…

A: When sales will double The costs (variable costs) will also double. Fixed costs will remain constant…

Question

40% of the fixed expenses will be eliminated and the remaining 60% will be allocated to the other if this segment is eliminated. What will be the over-all effect on the remaining company?

12,000 increase

60,000 decrease

No effect

20,000 decrease

A segment of Theta Company has the following data:
Sales
200,000
Variable expenses
140,000
Fixed expenses
100,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Prepare an income statement if your company’s gross sales isP300,000, with operating expenses of P100,000, and administrativecosts of P30,000. What is its gross income?
Given the following information:SalesFixed ExpensesVariable Expensess5,0002,0001,750What would expected operating profit be if the company experienced a 10% increase in fixedcosts and a 100/0 increase m sales volume? a) $1,375. b) $1,550. c) $1,250. d) $1,750.
Financial information is presented below: Operating expenses $ 40,000 Sales revenue 200,000 Cost of goods sold 150,000 Gross profit would be Group of answer choices $160,000. $ 40,000. $ 50,000. $ 10,000.
A company has the following financial information: net sales $500,000, cost of goods sold $300,000, operating expenses $100,000, and total assets $1,000,000. Calculate the gross profit margin, operating profit margin, and return on assets (ROA).
A company has the following financial information: net sales $500,000, cost of goods sold $300,000, operating expenses $100,000, and other income $10,000. Calculate the gross profit margin and the operating profit margin.
A company’s net sales are ₹ 15,00,000; cost of sales is ₹ 10,00,000 and indirect expenses are ₹ 3,00,000, the amount gross profit will be:
Bouvous Corporation had the following information for 2015:Revenue $400,000Operating expenses 350,000Total assets 530,000What is the return on investment?
A financial analyst for Simon Manufacturing prepared the following report: Customers Customer-Level Operating Income Customer Revenue A $5041.00 $26,250 B $4202.00 $30,000 C $3368.00 $15,000 D $1069.50 $7,300 E $984.80 $5,100 F $844.80 $4,400 G $336.60 $1,800 H $252.00 $4,500 I ($168.00) $2,400 J ($676.00) $2,600 What is the cumulative customer-level operating income as a percentage of customer level operating income for the top 4 most profitable (operating income) customers? 1) 17.4% 2) 89.7% 3) 85.0% 4) 79.1%
Use the following information (in thousands):Service Revenue¥1,600,000 Income from continuing operations200,000 Net Income180,000 Income from operations440,000 Selling & administrative expenses1,000,000 Income before income tax400,000Determine the amount of other income and expense
Calculate the profit margin (net income / sales) for the firm below. Sales 1400, COGS $1,200, Depreciation $800, Interest $500, Net Income 300, Total Assets $5,000
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $4,000,000 100.0 % Cost of goods sold (2,120,000) (60.0) Gross profit $1,880,000 40.0 % Selling expenses $(1,080,000) (24.0) % Administrative expenses (640,000) (14.0) Total operating expenses $(1,720,000) (38.0) % Operating income $160,000 2.0 % Other revenue and expense: Other revenue 120,000 3.0 Other expense (80,000) (2.0) Income before income tax expense $200,000 3.0 % Income tax expense (80,000) (2.0) Net income $120,000 1.0 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the…