Some financial data for each of three firms are as follows:1.JEFFERSONJAKE'SLAWN CHAIRSSARASOTASKY LIGHTSWHOLESALEAverage sellingprice per unitAverage variablecost per unitUnits soldS 97.77$ 32.00$ 875.00$ 87.00$ 17.38$400.0018,770$120,3502,800$850,00011,000$89,500Fixed costsWhat is the profit for each company at the indicated sales volume?a.What is the break-even point in units for each company?b.What is the degree of operating leverage for each company at the indicatedsales volume?с.If sales were to decline, which firm would suffer the largest relative decline inprofitability?d.

a) Profit for each company is revenue minus variable and fixed cost.Answer: Company JLC =…

Answered: Some financial data for each of three…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...

See similar textbooks

Similar questions

The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
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
The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
Beaucheau Farms sells three products (E, F, and G) with a sale mix ratio of 3:1:2. Unit sales price are shown. What is the sales price per composite unit? A. $28.00 B. $20.00 C. $59.00 D. $41.00
Hello, I have the following question. Shown here is an income statement in the traditional format for a firm with a sales volume of 15,500 units. Revenues $170,500 Cost of Goods sold ($10,000 + $2.75/unit) 52,625 Gross Profit $117,875 Operating expenses Selling ($2,450 + $1.15/unit) 20,275 Administration ($5,000 + $0.45/unit) 11,975 Operating Income $85,625 Question D1: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues increase by $13,000. Do not round intermediate calculations. Question D2: Calculate the firm's operating income (or loss) if the selling unit price and variable expense per unit do not change and the total revenues decrease by $10,000. Do not round intermediate calculations.
Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues $ 34,400 Cost of goods sold ($5,500 + $2.10/unit) 21,250 Gross profit $ 13,150 Operating expenses: Selling ($1,160 + $0.11/unit) 1,985 Administration ($3,900 + $0.20/unit) 5,400 Operating income $ 5,765 Total revenues of $34,400. Calculate the firm’s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues Increase by $14,000. Decrease by $3,000.
Below are the unit sales as well as sales revenue for four different brands. Please fill in the blanks (indicated with question marks). Please show your calculations under the table. Brand Unit Sales Unit Market Share Sales Revenue Revenue Market Share Price A 10,000 ? 10,000 50.0% ? B 5,000 ? 6,000 ? 1.20 C 3,000 ? 2,000 10.0% ? D 2,000 ? 2,000 ? 1.00
Metlock Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 2,000 $15 2/4 Purchase 3,000 23 2/20 Sale 3,500 38 4/2 Purchase 4,000 29 11/4 Sale 3,200 42 Compute cost of goods sold, assuming Metlock uses: (Round average cost per unit to 4 decimal places, e.g. 2.7631 and final answers to 0 decimal places, e.g. 6,548.) Cost of goods sold (a) Periodic system, FIFO cost flow $ (b) Perpetual system, FIFO cost flow $ (c) Periodic system, LIFO cost flow $ (d) Perpetual system, LIFO cost flow $ (e) Periodic system, weighted-average cost flow $ (f) Perpetual system, moving-average cost flow $
Bonita Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 1,900 $15 2/4 Purchase 2,900 23 2/20 Sale 3,400 38 4/2 Purchase 3,900 29 11/4 Sale 3,100 42 Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit $ Compute cost of goods sold, assuming Bonita uses: (Round average cost per unit to 4 decimal places, e.g. 2.7631 and final answers to 0 decimal places, e.g. 6,548.) Cost of goods sold (a) Periodic system, FIFO cost flow $ (b) Perpetual system, FIFO cost flow $ (c) Periodic system, LIFO cost flow $ (d) Perpetual system, LIFO cost flow $ (e) Periodic system, weighted-average cost flow $ (f) Perpetual system, moving-average cost flow $
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $374,700 $1,056,000 Variable costs 150,300 633,600 Contribution margin $224,400 $422,400 Fixed costs 158,400 246,400 Income from operations $66,000 $176,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. b. How much would income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. $ %
Asha Inc. and Samir Inc. have the following operating data: Line Item Description Asha Inc. Samir Inc. Sales $216,800 $632,000 Variable costs (87,000) (379,200) Contribution margin $129,800 $252,800 Fixed costs (70,800) (94,800) Operating income $59,000 $158,000 a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place.Asha Inc. fill in the blank 1 of 2Samir Inc. fill in the blank 2 of 2 b. How much would operating income increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number. Company Dollars Percentage Asha Inc. $fill in the blank 3 fill in the blank 4% Samir Inc. $fill in the blank 5 fill in the blank 6% c. The difference in the fill in the blank 1 of 3 of operating income is due to the difference in the operating leverages. Asha Inc.'s fill in the blank 2 of 3 operating leverage means that its fixed costs are a fill in the blank 3 of 3…
Pedaci Corporation produces and sells a single product. Data concerning that product appear below: Assume the company's monthly target profit is $15,000. The unit sales to attain that target profit is closest to: 3,212B. 5,265C. 8,235D. 5,571 Assume the company's monthly target profit is $17,000. The dollar sales to attain that target profit is closest to: $387,392B. $635,069C. $671,925D. $993,313

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS