Problem IV. The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000Cost of Goods Sold 560,000Gross Margin 240,000Less: Operating Expenses Selling Expenses105,000 Administrative Expenses105,000210,000Net Income 30,000 On average, a book sells for P40. Variable selling expenses are P3 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder is fixed. 3. The cost formula for operating expenses with “x” equal the number of books sold is:

Operating expense = (Variable selling + variable administration expense) X + ( selling expense +…

The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000 Cost of Goods Sold 560,000 Gross Margin 240,000 Less: Operating Expenses

The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000 Cost of Goods Sold 560,000 Gross Margin 240,000 Less: Operating Expenses

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

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Problem IV. The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000 Cost of Goods Sold 560,000 Gross Margin 240,000 Less: Operating Expenses           Selling Expenses 105,000           Administrative Expenses 105,000 210,000 Net Income 30,000 On average, a book sells for P40. Variable selling expenses are P3 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder is fixed. The contribution margin for the U Store for the first quarter of 2020 is?
Problem IV. The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000 Cost of Goods Sold 560,000 Gross Margin 240,000 Less: Operating Expenses           Selling Expenses 105,000           Administrative Expenses 105,000 210,000 Net Income 30,000 On average, a book sells for P40. Variable selling expenses are P3 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder is fixed. 4. If 25,000 books are sold during the second quarter of 2020, the company’s contribution margin would equal:
Problem IV. The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000 Cost of Goods Sold 560,000 Gross Margin 240,000 Less: Operating Expenses           Selling Expenses 105,000           Administrative Expenses 105,000 210,000 Net Income 30,000 On average, a book sells for P40. Variable selling expenses are P3 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder is fixed. 2. The net income computed using the contribution approach for the first quarter of 2020 is:
he Schrödinger Science Store operates a retail store in a local shopping mall. The results of operations for the fourth quarter of 2020 are as follows: Sales $350,000 Less cost of sales 205,000 Gross margin 145,000 Less selling, general, and administrative expenses 50,000 Income before taxes 95,000 Less taxes on income 19,000 Net income $ 76,000 Additional information: Sales are expected to increase by 10 percent and cost of sales are expected to increase by 12 percent in each of the next two quarters. 75 percent of sales are collected in the quarter of sale, and 25 percent are collected in the quarter following sale. The balance in accounts receivable at the end of 2020 relates to sales in the fourth quarter of 2020. Inventory purchases in the fourth quarter of 2020 are $200,000. The balance in accounts payable at the end of 2020 relates to purchases in the fourth quarter of 2020. Inventory at the end of 2020 is $150,000. For 2021, the company plans to hold…
The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: University Store, Inc. Income Statement For the Quarter Ended March 31 Sales $ 800,000 Cost of goods sold 560,000 Gross margin 240,000 Selling and administrative expenses Selling $ 100,000 Administrative 110,000 210,000 Net operating income $ 30,000 On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:
In the fourth quarter of 2020, Eurofit Cycling, a bike shop, had the following net income: SalesLess cost of sales $550,000250,000 Gross margin 300,000 Selling and administration 70,000 Income before taxes 230,000 Income taxesNet income 80,500$149,500 Purchases in the fourth quarter amounted to $195,000. Estimated data for Eurofit Cycling for 2021 are as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 SalesCost of sales $400,000170,000 $475,000185,000 $550,000220,000 $600,000230,000 Purchases 160,000 200,000 225,000 267,000 Selling and administration 67,000 69,000 71,000 73,000 Taxes are 35 percent of pretax income and are paid in the quarter incurred. Fifty percent of sales are collected in the quarter of sale and 50 percent are collected in the next quarter. Seventy percent of purchases are paid in the quarter of purchase and 30 percent are paid in the…
Payton Inc. reports in its Year 7 annual report, sales of $7,362 million and cost of goods sold of $2,945 million. For next year, you project that sales will grow by 3% and that cost of goods sold percentage will be 1 percentage point higher. Projected cost of goods sold for Year 8 will be: Select one: a. $3,033 million b. $3,019 million c. There is not enough information to determine the amount. d. $3,109 million e. $2,945 million
Bidoof Books, Inc. is a major bookseller for four nearby colleges. The income statement for the quarter of the year is presented below: Bidoof Books, Inc Income Statement For the quarter ended September 30, 2021 Sales ₱ 800,000 Less: Cost of Goods Sold 560,000 Gross Margin ₱ 240,000 Less: Operating Expenses Less: Selling Expenses ₱ 100,000 Less: Administrative Expenses 110,000 210,000 Net Operating Income ₱ 30,000 On average, a book sells for ₱400. Cost of goods sold is entirely variable. Unit variable selling expenses are ₱30 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. The TOTAL FIXED COSTS for September 2021 amount to ₱________________.
Projected financial results for the university's cafeteria for next year are shown. Answer each of the following independent questions. Sales $944,000 Fixed Cost $597,000 Total Variable Cost $235, 470 Total Cost $832, 470 Net Income $111,530 (a) How much is the contribution margin and the contribution rate?(b) How much does the business need to sell to break even?(c) If the business was to spend $24,000 to upgrade their processes, how much does the business need to sell to break even?(d) If 9% more meals were sold, what would be the resulting net income?
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.…
Matthew's Fish Fry has a monthly target operating income of $6600. Variable expenses are 80% of sales and monthly fixed expenses are $840. What is the monthly margin of safety in dollars if the business achieves its operating income goal? Question 20 options: $29,760 $37,200 $33,000 $41,400
The campus store at a large Midwestern university sells writing tablets to students, faculty, and staff. They sell more tablets near exam time. During a typical 10-week quarter, the pattern of sales is 2,280, 1,120, 360, 3,340, 1,230, 860, 675, 1,350, 4,600, 1,210.The pads cost the store $1.20 each, and holding costs are based on a 30 percent annual interest rate. The cost of employee time, paperwork, and handling amounts to $30 per order.Assume 50 weeks per year.a. What is the optimal order policy during the 10-week quarter based on the Silver–Meal heuristic? Using this policy, what are the total holding and ordering costs incurred over the 10-week period?b. The bookstore manager has decided that it would be more economical if the demand were the same each week. In order to even out the demand he limits weekly sales (to the annoyance of his clientele). Hence, assume that the total demand for the 10-week quarter is still the same, but the sales are constant from week to week. Determine…

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bartleby, a Learneo, Inc. business

Sales		800,000
Cost of Goods Sold		560,000
Gross Margin		240,000
Less: Operating Expenses
Selling Expenses	105,000
Administrative Expenses	105,000	210,000
Net Income		30,000