SURVEY OF ACCOUNTING 360DAY CONNECT CAR
5th Edition
ISBN: 9781260591811
Author: Edmonds
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 11, Problem 11E
a)
To determine
The overall cost of shirts and cost per shirt.
b)
To determine
Whether the cost of T-shirt is fixed or variable cost
c)
To determine
Draw a graph and plot total cost and cost per shirt.
d)
To determine
The likelihood of B Company of incurring loss because of its operating activities
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question No. 2 CVP – Basic Analysis
Raveen Products sells camping equipment. One of the company’s products, a camp lantern, sells for $90 per unit. Variable expenses are $63 per lantern, and fixed expenses associated with the lantern total $135,000 per month.
Required:
Compute the company’s break-even point in number of lanterns and in total sales dollars.
Compute the company’s Margin of Safety in sales dollar and in percentage.
At present, the company is selling 8,000 lanterns per month. The sales manager is convinced that a 10% reduction in the selling price will result in a 25% increase in the number of lanterns sold each month. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. Show both total and per unit data on your statements.
Refer to the data in (3) above. How many lanterns would have to be sold at the new selling price to yield a minimum net operating income of $72,000…
Question 2
Style photo sells only one product. The statement of comprehensive income for 2021 is provided below:
Sales
60,000
Less variable expenses
-30,000
Contribution margini
30,000
Less fixed expenses
-22,500
Net income
7,500
Required:
Calculate with workings:
a. The contribution margin ratio in percentage.
b. Three breakeven point in total sales ringgits.
ANSWER QUESTIONS 3&4 ONLY!!!
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes:
Ceiling Fan
Table Fan
Price
$54
$12
Unit variable cost
$11
$9
Direct fixed cost
$20,800
$41,000
Common fixed selling and administrative expenses total $84,000.
Required:
1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ____2___ : ____3______
2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number.
Break-even ceiling fans
3070
Break-even table fans
4605
3. Prepare a contribution-margin-based income statement for Vandenberg, Inc.,…
Chapter 11 Solutions
SURVEY OF ACCOUNTING 360DAY CONNECT CAR
Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2QCh. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...
Ch. 11 - 14.The president of Bright Corporation tells you...Ch. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Exercise 2-4A Determining total variable cost The...Ch. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prepare an income statement using the contribution...Ch. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Problem 2-19A Context-sensitive nature of cost...Ch. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 1ATCCh. 11 - Prob. 2ATCCh. 11 - Prob. 3ATCCh. 11 - Prob. 4ATCCh. 11 - Prob. 5ATC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margin 30,000 Less fixed expenses -22,500 Net income 7,500 Required: Calculate with workings: The contribution margin ratio in percentage. Three breakeven point in total sales ringgits. The sales in RM if the company wants to achieve RM40,000 in net income.arrow_forwardex3. Differential Analysis for Sales Promotion Proposal Sole Mates Inc. is planning a one-month campaign for July to promote sales of one of its two shoe products. A total of $100,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign: Tennis Shoe Walking Shoe Unit selling price $85 $100 Unit production costs: Direct materials $19 $32 Direct labor 8 12 Variable factory overhead 7 5 Fixed factory overhead 16 11 Total unit production costs $50 $60 Unit variable selling expenses 6 10 Unit fixed selling expenses 20 15 Total unit costs $76 $85 Operating income per unit $9 $15 No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 7,000 additional units of tennis…arrow_forwardProblem 3-54 (Algo) CVP Analysis and Price Changes (LO 3-1) Littlefield Partners produce a part sold to agricultural equipment suppliers. For the last year (Year 1), the price, costs, and volume of the part were as follows: Unit price $ 80 Unit variable cost $ 60 Annual fixed cost $ 3,220,000 Sales volume 232,200 units Managers at Littlefield believe that next year (Year 2), conditions in the industry will result in lower prices, both for the part they sell and the materials they purchase. Their best estimates at this time are that the selling price will decline by 10 percent while the unit variable cost will decline by 5 percent, taking into account the changes in both materials and labor. They believe that fixed costs will remain the same.arrow_forward
- Question No. 3 CVP – Applied: Revising Sales Incentives Data concerning Wislocki Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 180 100 % Variable expenses 45 25 % Contribution margin $ 135 75 % Fixed expenses are $1,048,000 per month. The company is currently selling 9400 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $12 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $106,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 440 units. Required: What should be the overall effect on the company's monthly net operating income of this change?arrow_forwardCommunication Bon Jager Inc. manufactures and sells medical devices used in cardiovascular surgery. The sales team consists of two salespeople, Dean and Martin, A contribution margin report by salesperson was prepared as follows: Bon Jager Inc. Contribution Margin by Salesperson Dean Martin Sales 400,000 480,000 Variable cost of goods sold 184,000 264,000 Manufacturing margin 216,000 216,000 Variable selling expenses: Variable promotion expenses 72,000 43,200 Variable sales commission expenses 56,000 67,200 Total variable selling expenses 128,000 110,400 Contribution margin 88,000 105,600 Manufacturing margin as a percent of sales (manufacturing margin ratio) 54% 4S% Contribution margin ratio 22% 22% Write a brief memo to Anna Berenson, the Vice President of Marketing, evaluating the performance of the company's salespeople and providing recommendations on how the salespeople could improve profitability.arrow_forwardQuestion 2: Zeroll Ice Cream company produces and sells premium ice cream cones in Coles supermarkets. The following table shows selling price and cost information of ice cream cones: Price per cone: $ 5.00 Variable cost per cone:Ingredients $1.35Direct labour $0.45Overhead $0.20Fixed cost per month $3,000Required: a. Calculate the breakeven point in units and in dollars. Click or tap here to enter text.b. The company’s general director has determined a target profit of $6,000 for next year. Given the price and cost information above, what are the required sales in units and in dollars for the company to achieve this target? Click or tap here to enter text.c. Calculate Zeroll’s new break-even point (in units and in dollars) for each of the following independent scenarios: Selling price decreases by $0.50 per cone. Click or tap here to enter text. Fixed costs decrease by $300 per month. Click or tap here to enter text. Variable costs increase by $0.50 per cone Click or tap here to…arrow_forward
- Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margin 30,000 Less fixed expenses -22,500 Net income 7,500 c. The sales in RM if the company wants to achieve RM40,000 in net income. d. The increase in net income if sales increase by RM50,000. e. The contribution margin in RM if there is no change in fixed and variable expensesarrow_forwardONLY ANSWER PART 3 Part 1: Giselle Rodriguez owns Rodriguez Art Studio in Havana, Cuba. It has fixed overhead costs of $3,000 per month. The variable cost is $5 and the price is $20, per person per art lesson. There are typically 500 customers each month. a) Construct a fully labeled break even chart for Rodriguez Art Studio Part 2: Using the following figures from Rodriguez Art Studio's. Figures are: Interest $8,000, Tax $9,200, Cost of Goods Sold $200,000. Net Profit before Interest and tax $100,000. Slaes Revenue $450,000. b) Construct a fully labeled Income Statement for Rodriguez Art Studio as of 31 December 2018. Part 3: Using the following figures from Rodriguez Art Studio's Balance Sheet. Figures are Sales Revenue $91,000, Stock $20,000, Current liabilities $35,000 and Current Assets $110,000. c) Comment on the liquidity position the the Studio.arrow_forwardQuestion 3Study the scenario and complete the questions that follow:Nonna Greco LimitedNonna Greco Limited manufactures and sells Italian HIP sunglasses. The following information relatesto January 2020:Units manufactured and sold: 500Income statement:RSales 261 500Less: Manufacturing costs 223 000Material 75 000Labour 50 000Manufacturing overheads (@ R20 per machine hour) 98 00038 500Less: Selling and administrative expenses (60% fixed) 17 500Net profit 21 000The following changes will come into effect on 1 February 2020: A sales price increase of 10%, resulting in a 5% decrease in sales volume. Due to negotiations with the labour union, the labour rate per hour will increase by 6%. It is expected that material costs will increase by 10%.The variable budget for manufacturing overheads indicates a total cost ofR94 400 at a capacity utilisation of 4 600 hours.Source: Hunde, T. (2020)Required:3.1 Calculate the total marginal income and marginal income per unit for the year ended 1…arrow_forward
- Exercise 6-10 Multiproduct Break-Even Analysis [LO6-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 30,000 $ 70,000 $ 100,000 Variable expenses 20,000 50,000 70,000 Contribution margin $ 10,000 $ 20,000 30,000 Fixed expenses 24,000 Net operating income $ 6,000 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.arrow_forwardQuestion 4 Auto Tires, Inc. sells tires to service stations for an average of $145 each. The variable costs of each tire is $85 and monthly fixed manufacturing costs total $45,000. Other monthly fixed costs of the company total $15,000. Note: No need to enter comma between number Required: 1. What is the break-even level in tires? 2. What is the margin of safety, assuming sales total $190,000? 3. What is the break-even level in tires, assuming variable costs increase by 20 percent and selling price increase by 17 per unit ? 4. What is the break-even level in tires, assuming the selling price goes up by 20 percent, fixed manufacturing costs decline by 10 percent and other fixed costs decline by $1500and variable cost decrease by 1 per unit ?arrow_forwardQuestion 2 of 10 Moving to another question will save this response. Question 2 DDD Corporation reported total sales of Rs. 204,000 at a price of Rs. 20 and per unit variable expenses of Rs. 12, for the sales of their single product. Per Unit 'Rs.' Total 'Rs.' Sales (10,200 units) 20 204,000 Variable Expenses 12 122,400 Contribution Margin 8 81,600 Fixed Expenses 100,000 Net Operating Income (18,400) Calculate change in Net Operating Income if sales increased by 36,000 and fixed expenses decreases by 25,000.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial & Managerial AccountingAccountingISBN:9781337119207Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Pricing Decisions; Author: Rutgers Accounting Web;https://www.youtube.com/watch?v=rQHbIVEAOvM;License: Standard Youtube License