Service EmphasisThe following analysis of selected data is for each of the two services Gates Corporation provides.         Service A Service B Per-service data at 10,000 services           Sales price       $28 $24 Service costs:           Variable       11 11 Fixed       6 4 Selling and administrative expenses:           Variable       5 3 Fixed       3 1   In the Gates operation, labor capacity is the company's constraining resource. Each unit of A requires 3 hours of labor, and each unit of B requires 2 hours of labor. Assuming that all services can be sold at a normal price, prepare an analysis showing which of the two services should be provided with any unused productive capacity that Gates might have.   Service   A B Revenue Answer Answer Less: Variable cost Answer Answer Contribution margin Answer Answer Labor hours per unit Answer Answer Contribution margin per labor hour Answer Answer     Any unused capacity should be devoted…

Problem 1: The IT corporation produces and markets two types of electronic calculators: Model 11 and model 12. The following data were gathered on activities last month. Model 11 Model 12 Sales in units... Selling price per unit.. Variable production costs per unit.. Traceable fixed production costs.. Variable selling expenses per unit.. Traceable fixed selling expenses....... Allocated division administrative expenses.. $50,000 Prepare a segmented income statement in the contribution format for last month 5,000 $50 $10 $100,000 $5 5,000 3,000 $100 $26 $150,000 $6 7,500 $60,000

Service Emphasis The following analysis of selected data is for each of the two services Rockville Corporation provides. Service G Service H Per-unit data at 10,000 services Sales price Service costs: Variable Fixed Selling and administrative expenses: Variable Fixed $ Revenue Less: Variable cost Contribution margin Labor hours per unit Contribution margin per labor hour $ $36 $ 19 6 G 5 3 In the Rockville's operation, labor capacity is the company's constraining resource. Each unit of G requires 3 hours of labor, and each unit of H requires 1 hours of labor. Assuming that all service can be sold at a normal price, prepare an analysis showing which of the two services should be provided with any unused productive capacity that Rockville might have. Service $23 36 $ 25 X 11 * $ 3 3.67 × $ 15 4 2 1 H 23 19 x 4 x 1 4 × Any unused capacity should be devoted to Service H, which has $2 less contribution margin per labor hour than does Service G. Any unused capacity should be devoted to…

Question 3 The following monthly data in contribution format are available for the Timor Company and its only product. Product SD: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ $ $ $ $ 227,500 162.500 65,000 45.000 20,000 Per Unit $ $ $ 91 65 26 The company produced and sold 2,500 units during the month and had no beginning or ending inventories. a) What is the current margin of safety? b) Management is concerned about having the funds to pay dividends next quarter. They believe net operating income of $35,000 will be sufficient. How much sales revenue is necessary to achieve this target profit?

37 A company reports the following contribution margin income statement for this year. For next year, if the unit sales price is reduced to $42 and advertising is increased by $10,800, sales will increase from 5,200 to 7,200 units. Contribution Margin Income Statement For Year Ended December 31 Sales (5,200 $46) Variable costs (5,200 x $25) Contribution margin Fixed costs Income Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement for next year assuming the company lowers the sales price per unit to $42 and increases advertising costs by $10,800. Contribution Margin Income Statement For Year Ended December 31 $ 239,200 130,000 109, 200 46,800 $ 62,400 Sales Variable costs Contribution margin Fixed costs Income 11 H Next feer FIL in cree -0...

Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for three clients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for Englewood Medical Center. RBS bills clients at $560 an hour; its labor costs are $145 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients. Overhead costs of $75,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 80 hours were not billable, some overhead was not assigned to jobs. RBS had $61,000 in marketing and administrative costs. All transactions were on account. Required: a. What are the revenue and cost per client? b. Prepare an income statement for August. Complete this question by entering your answers in the tabs below. Required A Required B What are the revenue and cost per client? Revenue Labor Overhead Margin Selden Contracting Moenhart Insurance $ Englewood Medical…

Print Item Question Content Area Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:   EstimatedFixed Cost   Estimated Variable Cost(per unit sold) Production costs:             Direct materials —   $46       Direct labor —   40       Factory overhead $200,000     20     Selling expenses:             Sales salaries and commissions 110,000     8       Advertising 40,000     —       Travel 12,000     —       Miscellaneous selling expense 7,600     1     Administrative expenses:             Office and…

Q. No. 02 The following is The AG Corporation's contribution format income statement for last month: Sales Less variable expenses Contribution margin Less fixed expenses Rs.4,000,000 2,800,000 1,200,000 720,000 $ 480.000 Net income The company has no beginning or ending inventories. A total of 80,000 units were produced and sold last month. REQUIRED: What is the company's margin of safety? Break even in units and in dollar?

Salespersons' Report and Analysis Pachec Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended June 30 are as follows: Variable Total Variable Cost Selling of Goods Sold Salesperson Sales Expenses Asarenka $437,500 $196,875 $83,125 Crowell 91,200 570,000 228,000 Dempster 675,000 310,500 141,750 587,500 123,375 MacLean 246,750 Ortiz 525,000 126,000 215,250 Sullivan 587,500 246,750 99,875 Williams 575,000 253,000 115,000 Required: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers. Do