Please do not give solution in image format thanku The Central Valley Company is a manufacturing firm that produces and sells a single product. Thecompany's revenues and expenses for the last four months are given below.Sales in unitsSales revenueLess: Cost of goods soldGross marginLess: Operating ExpensesShipping expenseAdvertising expenseSalaries and commissions.Insurance expenseAmortization expenseTotal operating expensesNet incomeCentral Valley CompanyComparative Income StatementMarchApril6,900$793,500 $736,000421,350397,440$372,150$338,560$ 65,300$ 52,20098,50098,500166,500133,50018,50018,50051,50051,500$400,300$354,200$ (28,150) $ (15,640)6,400May8,100$931,500484,380$447,120$ 68,80098,500171,000June9,800$1,127,000574,770$ 552,230$ 61,50098,500164,00018,50018,50051,50051,500$408,300 $ 394,000$ 38,820 $ 158,230 Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-evensales, and the profit if 89,500 units are sold during the year. (Round "Break-even sales" answer tonearest whole number.)Break-even salesAnnual profit (89,500 units)unitsCalculate the change in profit if the selling price were reduced by $14.0 each and annual sales were toincrease by 8,800 units.Determine the change in profit if the company were to increase advertising by $119,000 and if this wereto increase sales by 8,800 units.

Companies utilise the cost-volume-profit (CVP) analysis approach to ascertain the level of sales…

The Central Valley Company is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below. Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating Expenses Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense Total operating expenses Net income Central Valley Company Comparative Income Statement March 6,900 April 6,400 $793,500 $736,000 421,350 397,440 $372,150 $338,560 $ 65,300 $ 52,200 98,500 98,500 166,500 133,500 18,500 18,500 51,500 51,500 $400,300 $354,200 $ (28,150) May 8,100 $931,500 484,380 $447,120 $ 68,800 98,500 171,000 18,500 51,500 $408,300 $ (15,640) $ 38,820 June 9,800 $1,127,000 574,770 $ 552,230 $ 61,500 98,500 164,000 18,500 51,500 $ 394,000 $ 158,230

The Central Valley Company is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below. Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating Expenses Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense Total operating expenses Net income Central Valley Company Comparative Income Statement March 6,900 April 6,400 $793,500 $736,000 421,350 397,440 $372,150 $338,560 $ 65,300 $ 52,200 98,500 98,500 166,500 133,500 18,500 18,500 51,500 51,500 $400,300 $354,200 $ (28,150) May 8,100 $931,500 484,380 $447,120 $ 68,800 98,500 171,000 18,500 51,500 $408,300 $ (15,640) $ 38,820 June 9,800 $1,127,000 574,770 $ 552,230 $ 61,500 98,500 164,000 18,500 51,500 $ 394,000 $ 158,230

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4PB: Salespersons report and analysis Pachec Inc. employs seven salespersons to sell and distribute its...

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