The following is Alli Corp's contribution format income statement for last month: Sales $800,000 Variable expenses 300,000 Contribution margin 500,000 Fixed expenses 400,000 Net operating income 100,000 The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. If sales increase by 200 units, by how much should operating income increase? a. $16,000 b. $5,000 c. $2,000 d. $10,000
Q: Product A Product B Product C Total Sales $ 150,000 $ 130,000 $ 90,000 $ 370,000 Variable…
A: We know that at break-even sales company can recover all the cost incurred in the production of…
Q: Miller Company’s contribution format income statement for the most recent month is shown below:…
A: Old Revised Sales (43,000 units) $ 9.00 $ 9.90 Variable expenses $ 6.00 $ 6.30…
Q: Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $156,000, total…
A: Formula used:
Q: Miller Company's contribution format income statement for the most recent month is shown below:…
A: 1. Total Per unit Sales (37000*1.15 = 42550 units) 2,97,850.00…
Q: The contribution format income statement for Huerra Company for last year is given below:…
A: Return on investment: It is used to measure the efficiency of the investment of the organisation.
Q: Eastwick produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: Miller Company's contribution format income statement for the most recent month is shown below:…
A: PLEASE LIKE THE ANSWER Requirements 1 Net Operating Income $84,090 2 Net…
Q: Last month when Holiday Creations, Inc., sold 45,000 units, total sales were $289,000, total…
A: Contribution Margin Ratio: The contribution margin ratio is the percent change between a company's…
Q: Whirly Corporation’s contribution format income statement for the most recent month is shown below:…
A: Net Income = Sales - Variable Expenses - Fixed Costs
Q: 2. Last month when Pantok Creations Inc. sold 40,000 units, total sales were P300,000, total…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: Menlo Company distributes a single product. The company’s sales and expenses for last month follow:…
A: The margin of safety is calculated as difference between current sales and break even sales.
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: Contribution margin (CM) ratio = Contribution margin / Sales where, Contribution margin = Sales -…
Q: Miller Company's contribution format income statement for the most recent month is shown below Sales…
A: 1) the units sold increases by 19% then the net increase is 100% +19% = 119% 2) units sold…
Q: Last month when Holiday Creations, Incorporated, sold 41.000 units, total sales were $164,000, total…
A: Formula: Contribution margin ratio = ( Contribution margin / Total sales ) x 100
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: Net Operating Income Net operating income refers to the income generated from the day-to-day…
Q: Frieden Company's contribution format income statement for last month is shown below: Sales (40,000…
A: The indifference point is when the company neither incurs loss nor profit. It is a point above which…
Q: Computing and Using the CM Ratio Last month when Holiday Creations, Inc., sold 50,000 units, total…
A:
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: Requirement 1: Prepare a contribution income statement.
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: Fixed cost remains constant at all the level of volume of sales.
Q: Last month when Holiday Creations, Incorporated, sold 37,000 units, total sales were $148,000, total…
A: The contribution margin is the excess of sales price over the variable expenses of a product. The…
Q: The following is The AG Corporation's contribution format income statement for last month: Sales…
A: Contribution per unit = $1,200,00080 ,000 units = $15 per unit PV ratio = ContributionSales ×100 =…
Q: The contribution format income statement for Huerra Company for last year is given below:…
A: Margin percentage is computed by dividing the net profit by sales. Turnover means the net sales of…
Q: C) Ledbetter Company reported the following results from sales of 5,000 units of Product A for June:…
A: Current sales price per unit = Total sales / No. of units sold = $200,000/5,000 units = $40 Budgeted…
Q: he following is Addison Corporation's contribution format income statement for last month: The…
A: Contribution margin is sales revenue which is over and above variable costs of the business.…
Q: The following data are available for the Firempong Corporation for a recent month: Product 1 Product…
A: Break-even point = Fixed costs /Weighted Average Contribution margin per unit where, Contribution…
Q: Kevin Co.’s projected contribution-format income statement for the upcoming month is shown below:…
A: Contribution means sale minus variable cost. Detail calculation given below.
Q: Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total…
A: Total contribution margin = Sales - Total variable expenses Contribution margin ratio = Total…
Q: Company ABC distributes a single product. The company’s sales and expenses for last month follow:…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: With the Increase or Decrease in the sales units, the Fixed Cost will Remain the Same, but the total…
Q: Morton Company’s contribution format income statement for last month is given below: Sales…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: es Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000,…
A: Given information, Units sold =41,000 Total sales =$164,000 Total variable expenses =$137,760 Fixed…
Q: Menlo Company distributes a single product. The company’s sales and expenses for last month follow:…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Miller Company’s contribution format income statement for the most recent month is shown below:…
A: Net Operating income = Sales - Variable expenses - Fixed expenses In the question, there are some…
Q: Halloween, Inc. reported the following income statement data for February: Sales $150,000; Total…
A: Given information is: Halloween Inc.reported the following income statement data for February: Sales…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown b Total…
A: Here in this question we are require to calculate net operating income under different scenario. Net…
Q: Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total…
A: Contribution Margin: It is the aggregate amount of revenue that is available after total expenses…
Q: Menlo Company distributes a single product. The company’s sales and expenses for last month follow:…
A: ‘’Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Miller Company's contribution format income statement for the most recent month is shown below:…
A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: The Cape Cod Cotton Candy Company had the following information available regarding last year’s…
A: Introduction: Net income is the remaining accounting profit after subtracting all expenditures.…
Q: Whirly Corporation’s contribution format income statement for the most recent month is shown below:…
A: Formula: Contribution margin = Sales - variable cost
Q: Last month when Holiday Creations, Inc., sold 36,000 units, total sales were $144,000, total…
A: PLEASE LIKE THE ANSWER Contribution Margin Ratio 19% (Contribution/Sales) X 100 (…
Q: Menlo Company distributes a single product. The company’s sales and expenses for last month…
A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: A company sold 25,000 units of product last year. The contribution margin per unit was ₱2, and fixed…
A: Profit earned in last year = Number of units sold * Contribution margin per unit - Fixed expenses =…
Q: Miller Company's contribution format income statement for the most recent month is shown below:…
A: Net Operating income is calculated by deducting the total cost from the total revenue.
Q: Menlo Company distributes a single product. The company's sales and expenses for last month follow:…
A: Since you have posted a question with multiple sub-parts , we will do the first three sub-parts for…
Q: These following details were supplied by Eigen Manufacturing Corp. over the previous month: Sales…
A: A expenditure for the firm that varies according on how much is produced or sold is called a…
Q: The following is Alsatia Corporation's contribution format income statement for last month: The…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: Revised net operating income: = Existing net operating income + (increase in sales volume *…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below…
A: Solution 1: Contribution Margin income Statement (7650 units) Particulars Total Per unit…
Q: e 360,000 7.20 Income taxes @ 30% 108,000 2.16 Net income $ 252,000 $ 5.04 The company…
A: Profit margin is the ratio of Net Income to Sales of the company. Asset turnover ratio is the ratio…
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- Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and sell 49,300 units at a price of 12.50 each. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Total selling expense is projected at 26,000, and total administrative expense is projected at 134,000. Required: 1. Prepare an income statement in good form. Be sure to include the percent of sales column. 2. What if the cost of goods sold percentage for the past few years was 65 percent? Explain how management might react.
- Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000Biblio Files CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8 Sales $379,000 Variable costs: Manufacturing expense $151,600 Selling expense 15,160 Administrative expense 60,640 (227,400) Contribution margin $151,600 Fixed costs: Manufacturing expense $76,750 Selling expense 8,000 Administrative expense 10,000 (94,750) Operating income $56,850 Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type ofBookshelf Sales Priceper Unit Variable Costper Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called…Biblio Files CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8 Sales $379,000 Variable costs: Manufacturing expense $151,600 Selling expense 15,160 Administrative expense 60,640 (227,400) Contribution margin $151,600 Fixed costs: Manufacturing expense $76,750 Selling expense 8,000 Administrative expense 10,000 (94,750) Operating income $56,850 Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type ofBookshelf Sales Priceper Unit Variable Costper Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called…
- The following is Pacific Limited’s contribution format income statement for January 2022: Sales $1,400,000Variable expenses 700,000Contribution margin 700,000Fixed expenses 400,000Net operating income $ 300,000 The company has no beginning or ending inventories and produced and sold 25,000 units during the month. Required (show your calculation): a. The company’s top management team is currently investigating how many units they need to sell to reach the break-even point. Also, they want to know how much revenue they need to generate to reach the break-even point. What do you think? b. If the company aim to generate a profit of $155,000, how many extra units they need to sell beyond the break-even point? c. What is the company’s margin of safety both in dollar and percentage terms? Explain the margin of safety of the company? d.Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6.50 per carton of calendars. Of the variable expense, 74% is cost of goods sold, while the remaining 26% relates to variable operating expenses. The company sells each carton of calendars for $16.50. 1. Begin by determining the basic income statement equation. - - = Operating income Compute the number of cartons of calendars that College Spirit Calendars must sell each month to break even. 2. Compute the dollar amount of monthly sales that the company needs in order to earn $308,000 in operating income (round the contribution margin ratio to two decimal places). Begin by determining the formula. ( + ) / = Target sales in dollars 3. Prepare the company's contribution margin income statement for June for sales of 450,000 cartons of calendars 4.…The following is Arkadia Corporation's contribution format income statement for last month:Sales.............................................. P1,200,000Variable expenses......................... 800,000Contribution margin ....................... 400,000Fixed expenses ............................. 300,000Net operating income .................... P 100,000The company has no beginning or ending inventories and produced and sold 20,000 units during the month.Required:a. What is the company's contribution margin ratio?b. What is the company's break-even in units?c. If sales increase by 100 units, by how much should net operating income increase?d. How many units would the company have to sell to attain target profits of P125,000?e. What is the company's margin of safety in pesos?f. What is the company's degree of operating leverage?
- CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…Complete this question by entering your answers in the tabs below. Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 30 per unit Fixed $ 7,350,000 (per year) Selling and administrative costs for the year Variable $ 775,000 Fixed $ 4,500,000 Production and sales for the year Units produced 105,000 units Units sold 75,000 units Sales price per unit $ 360 per unit Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Net income (loss)ngberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 145,000 100 % Variable expenses 58,000 40 % Contribution margin 87,000 60 % Fixed expenses 22,000 Net operating income $ 65,000 Using the degree of operating leverage, estimate the impact on net operating income of a 23% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Net operating income increases by %