Sandhill Company makes three models of tasers. Information on the three products is given below.TinglerShockerStunnerSales$296,000$504,000 $200,000Variable expenses151,700207,900138,200Contribution margin144,300296,10061,800Fixed expenses117,800231,80095,000Net income$26,500$64,300$(33,200)Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, as well as direct fixedexpenses unique to each model of $29,000 (Tingler), $80,600 (Shocker), and $35,000 (Stunner). The common costs will be incurredregardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income.(a)Compute current net income for Sandhill Company.Net incomeA

Variable cost Depends upon the production of goods or services that is increment of sales increases…

Answered: Sandhill Company makes three models of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ivanhoe Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 151,100 203,300 138,600 Contribution margin 144,900 300,700 61,400 Fixed expenses 116,616 228,184 93,900 Net income $28,284 $72,516 $(32,500) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,700 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income.(a)Compute current net income for Ivanhoe Company. Net income $ (b)Compute net income by product line…
SOLE Brother Company has 2 product lines. Hiking boots and fashion boots. Income statement data for the most recent year follow: Total Hiking boots Fashion boots sales revenue RM510,000.00 RM370,000.00 RM140,000.00 variable expenses RM355,000.00 RM235,000.00 RM120,000.00 contribution margin RM155,000.00 RM135,000.00 RM20,000.00 fixed expenses RM81,000.00 RM40,500.00 RM40,500.00 operating income (loss) RM74,000.00 RM94,500.00 -RM20,500.00 Do need to drop or keep the Fashion boots? Why?
Charter Sports Equipment manufactures round, rectangular, and octagonal trampolines. Sales and expensedata for the past month follow:TrampolineTotal Round Rectangular OctagonalSales ..................................................... $1,000,000 $140,000 $500,000 $360,000Variable expenses ................................. 410,000 60,000 200,000 150,000Contribution margin ............................... 590,000 80,000 300,000 210,000Fixed expenses:Advertising—traceable ...................... 216,000 41,000 110,000 65,000Depreciation of special equipment .... 95,000 20,000 40,000 35,000Line supervisors’ salaries .................. 19,000 6,000 7,000 6,000General factory overhead* ................. 200,000 28,000 100,000 72,000Total fixed expenses ............................. 530,000 95,000 257,000 178,000Net operating income (loss) ................... $ 60,000 $ (15,000) $ 43,000 $ 32,000*A common fixed cost that is allocated on the basis of sales dollars.Management is concerned about…
A commercial company bought 250 units of a specific material at a price of 50,000 dinars per unit, and the purchase expenses were up to the arrival of the material. The stores of the company were my two: commission banks = 1250000 tax expenses = 1875000, transportation, loading and unloading expenses = 900000 insurance expenses = 600000 Requirement: Calculating the cost of the material purchased?
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recentmonthly contribution format income statement follows:DepartmentTotal Hardware LinensSales ................................................ $4,000,000 $3,000,000 $1,000,000Variable expenses ........................... 1,300,000 900,000 400,000Contribution margin .......................... 2,700,000 2,100,000 600,000Fixed expenses ................................ 2,200,000 1,400,000 800,000Net operating income (loss) ............. $ 500,000 $ 700,000 $ (200,000)A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocatedcosts that will continue even if the Linens Department is dropped. In addition, the elimination of the LinensDepartment will result in a 10% decrease in the sales of the Hardware Department.Required:If the Linens Department is dropped, what will be the effect on the net operating income of the companyas a whole?
Glam company offers customers a pottery cereal bowl if they send in three boxtops from its products and P10. The entity estimated that 60% of the boxtops will be redeemed. During the current year, the entity sold 675,000 boxes and customers redeemed 330,000 boxtops receiving 110,000 bowls. The cost of each bowl is P25. 1a. What is the premium expense for the current year? a. 1,650,000 b. 2,025,000 c. 4,550,000 d. 6,075,000 1b. What is the liability for outstanding premiums at year-end? a. 250,000 b. 375,000 c. 625,000 d. 875,000
A towel is offered as a premium to customers who send in 10box tops of facial soap returned and a remittance of ₱25. Distribution cost is ₱10 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided thefollowing information: 2020 2021Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000Number of box tops returned 22,500 38,550Requirements:4. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021
Oriole provides enivronmentally friendll laswn services for homeownders. Its operating costs are as follows: depreciation (straight-line) $1500 per month advertising $400 per month insurance $3560 per month weed and feed materials $24 per lawn dircet labor $3 per lawn fuel $1 per lawn Oriole charges $80 per treatment for the average single family lawn. For the month ended July 31, 2022, the company had total sales of $9600. Prepare a CVP Income statement for the month ended July 31,2022.
ABC Company has the following costs and expenses for the year December 31, 2020. Raw Materials, 1/1/2020 P40,000 Insurance, Factory P14,000 Raw Materials, 12/1/2020 P25,000 Property Taxes, Factory Building P6,000 Raw Materials Purchases P305,000 Sales Revenue P2,000,000 Work-in-Process, 1/1/2020 P60,000 Delivery Expenses P50,000 Work-in-Process, 12/1/2020 P40,000 Sales Commissions P100,000 Finished Goods, 1/1/2020 P120,000 Indirect Labor P55,000 Finished Goods, 12/31/2020 P110,000 Indirect Material P105,000 Direct Labor P400,000 Factory Machinery, Rent P25,000 Factory Manager’s Salary P25,000 Factory Utilities P55,000 Depreciation, Office Equipment P25,000 Administrative Expense P250,000 Requirement: Prepare a cost of goods manufactured schedule for ABC Company for 2020. Prepare cost of goods sold schedule for ABC Company for 2020. Prepare Income Statement for ABC Company.
Mayfair Company has two service departments (A and B) and two producing departments (C and D). Last year, direct costs were A P80,000; B P60,000; C P15,000 and D P20,000. A provides services to B 10%, C 60% and D 30% while B provides services to A 30%, C 20% and D 50%. Using the algebraic method, Dept. A's allocation to Dept. C was P35,051.P14,021.P21,031.P60,619.
Stay Handy company is a large company providing door to door delivery service forgroceries and other daily need items. In the most recent year, company had 60 millionmembers, through which provided it a revenue of $33,347 in the most recent year. Thedetails relating to Costs and expenses for the year were as follows:ParticularsCost of revenueSelling, general, and administrative expensesDepreciation and amortizationAmount (S in millions)§14 958S§7 9948,150Form the total cost of revenue 30% was fixed and the selling, general and administrativeexpenses are fixed to the extent of 70% to the number of members. How manymemberships does the company need to break-even? (All interim calculations and finalanswers should be rounded off to one decimal place)
Pinta Company produces and sells two products, Ballpen and Sign Pen. Presented below are the financial figures in the production and sale of Pinta Company Sales in units (box) Ballpen Sign Pen Total 3,000 2,000 5,000 Sales P350,000.00 P400,000.00 P750,000.00 VC 100,000.00 250,000.00 350,000.00 CM 250,000.00 150,000.00 400,000.00 FX 120,000.00 NI 280,000.00 Required: How many units of Ballpen should be sold next month to break even? How many units of Ph Sign Pen should be sold to earn a profit of P300,000.00? How many units of Ph Sign Pen should be sold to earn a profit of P150,000 net of 35% tax?

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