The 4 x4 Shop Income Statement - Linear Department for First Quarter of Current Year $9,600,000 Sales Less cost of goods sold Gross margin Less operating expenses: Selling expenses Administrative expenses 1,190,000 2,309,000 Net income 4,227,500 5,372,500 $1,119,000 |$3,063,500 The liners sell, on average, for $3,200 each. The department's variable selling expenses are $279,000. The remaining selling expenses are fixed. All administrative expenses are fixed. Sixty percent of the cost of goods sold was variable with respect to the number of units. 1. Prepare a Contribution Margin Income Statement in proper form Using the Income Statement - Liner Department for First Quarter of Current Year. Show breakdown of all costs and calculations 2. What is the sales revenue ($) they need to achieve in order to break-even? ( 3. Calculate how many liners the company would need to sell IF it wanted to make TARGET profit of $3,300,000.
The 4 x4 Shop Income Statement - Linear Department for First Quarter of Current Year $9,600,000 Sales Less cost of goods sold Gross margin Less operating expenses: Selling expenses Administrative expenses 1,190,000 2,309,000 Net income 4,227,500 5,372,500 $1,119,000 |$3,063,500 The liners sell, on average, for $3,200 each. The department's variable selling expenses are $279,000. The remaining selling expenses are fixed. All administrative expenses are fixed. Sixty percent of the cost of goods sold was variable with respect to the number of units. 1. Prepare a Contribution Margin Income Statement in proper form Using the Income Statement - Liner Department for First Quarter of Current Year. Show breakdown of all costs and calculations 2. What is the sales revenue ($) they need to achieve in order to break-even? ( 3. Calculate how many liners the company would need to sell IF it wanted to make TARGET profit of $3,300,000.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...
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