Exercise 5-12 (Algo) Multiproduct Break-Even Analysis [LO5-9] Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Sales CM ratio Product Flight Dynamic $ 710,000 62% Sure Shot $ 290,000 77% Fixed expenses total $591,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $45,000 a month, by how much would you expect the monthly net operating income to increase? Total $1,000,000. 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (.e. 0.1234 should be entered as 12.34).) Flight Dynamic Amount % Sure Shot Amount $ % Total Company Amount %

Exercise 5-12 (Algo) Multiproduct Break-Even Analysis [LO5-9] Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Sales CM ratio Product Flight Dynamic $ 710,000 62% Sure Shot $ 290,000 77% Fixed expenses total $591,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $45,000 a month, by how much would you expect the monthly net operating income to increase? Total $1,000,000. 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (.e. 0.1234 should be entered as 12.34).) Flight Dynamic Amount % Sure Shot Amount $ % Total Company Amount %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 5-12 (Algo) Multiproduct Break-Even Analysis [LO5-9] Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Total Sales CM ratio Flight Dynamic $ 730,000 Sure Shot $ 270,000 $ 1,000,000 63% 77% ? Fixed expenses total $584,500 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $55,000 a month, by how much would you expect the monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Flight Dynamic Sure Shot Total Company Amount % Amount % Amount %
Exercise 6-12 (Algo) Multiproduct Break-Even Analysis [LO6-9] Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Flight Dynamic Sales CM ratio $ 740,000 Sure Shot $260,000 Total $1,000,000 63% 77% ? Fixed expenses total $587,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $59,000 a month, by how much would you expect the monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Flight Dynamic mount Sure Shot % Amount % Total Company Amount %
Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,508 per unit and then sells them to retail customers for an average price of $3,100 each. The company's selling and administrative costs for a typical month are presented below: Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Cost Formula $937 per month $4,819 per month, plus 3% of sales $62 per piano sold $638 per month $5,010 per month $13,471 per month $682 per month $2,465 per month, plus $36 per piano sold $944 per month Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Incorporated, sold and delivered 58 pianos. Required: 1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs…
Bw J KVHZUM123 Corporation has two departments, Toys and Candy. The company's most recent monthly contribution format Income statement follows: Sales Varlable expenses Contribution Margin Fixed Expenses Net operating Income (loss) (ID#79893) (Baruch College - No assistance allowed.) Multiple Choice Total O O Candy $4,200,000 $3,000,000 $1,200,000 2,000,000 1,500,000 500,000 2,200,000 1,500,000 700,000 2,200,000 1,300,000 900,000 (200,000) 200,000 Q) If the Candy Department is dropped, what will be the effect on the net operating Income of the KVHZUM123 Corporation as a whole? O A KVHZUM123's study indicates that $200,000 of the fixed expenses being charged to the Candy Department are sunk costs or allocated costs that will continue even if the Candy Department is dropped. In addition, the elimination of the Candy Department will result in a 20% decrease in the sales of the Toys Department. Decrease by $260,000 0 Increase by $340,000 Department Toys Decrease by $340,000 Decrease by…
Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Flight Dynamic Sure Shot Total Sales ................................................. $150,000 $250,000 $400,000 CM ratio ........................................ 80% 36% ? Fixed expenses total $183,750 per month.Required:1. Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place.2. What is the company’s break-even point in dollar sales based on the current sales mix?3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? What are your assumptions?
ouTube Maps er 1 i 05 K ces Mc Graw MU Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Planos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,492 per unit and then sells them to retall customers for an average price of $2,600 each. The company's selling and administrative costs for a typical month are presented below. Costs Selling: Advertising Sales salaries and commissions. Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: 9°F ain showers Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Planos, Incorporated, sold and delivered 62 planos. Required 1 Required 2 Cost Formula Required: 1. Prepare a traditional format Income statement for August. 2. Prepare a contribution format Income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin. $933 per month $4,790…
ok ht nt ences Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 63,900 42,600 $ 21,300 Makeover Total $ 149,100 $ 213,000 106,500 149, 100 #1 $ 42,600 63,900 51,120 $ 12,780 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 the two products. even point that shows the appropriate levels of sales for
(a) Superior Gifts sells corporate gift package in Sabah, and Superior Gift has 3 types of gift packages. The following are the information available. Standard Superior Executive Selling price per package (RM) Total variable cost (RM) | Monthly sales (packages) Fixed cost (RM) 120 90,000 1,200 150 250 74,700 30,000 900 300 20,000 18,000 12,000 Required: (1) Calculate the Contribution Margin for each type of gift package. (ii) Calculate the combined Contribution Margin for Superior Gift. (iii)Calculate the break-even point in TOTAL units to be sold. (iv)Calculate the number of each type of room to be sold in order to achieve break- even point. (v) Assume that sales of 3,000 is projected for the month of December 2020, calculate the projected profit for the month of December 2020. (b) Explain ANY TWO (2) assumptions of Cost-Volume-Profit (CVP) analysis.
use the following information related to the selling of watches for answering 1 through 3 Selling price per watch $25 fixed expenses (Gen.Admin. & Financial) = 150,000 purchasing cost of per watch $10 cost sales commission os sales person on sale of each watch $5 Q1 what is the firm's contribution margin on per uniy basis? a) 15 b) 13 c) 10 D) non of the above
Exercise 1-15 (Algo) Traditional and Contribution Format Income Statements [LO1-6] The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,462,000 Selling price per pair of skis $ 430 Variable selling expense per pair of skis $ 47 Variable administrative expense per pair of skis $ 20 Total fixed selling expense $ 135,000 Total fixed administrative expense $ 100,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 110,000 Merchandise purchases $ 295,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?
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.
esc Par for the Course produces and sells 2,000 sets of golf clubs. Selling price per unit Variable cost per unit Annual fixed cost What is the company's contribution margin per unit? (Round to the nearest cent.) Click Save and Submit to save and submit. Click Save All Answers to save all answers. 1 1 Q A 7 2 W S # 3 X E D $ 4 R % 5 F MacBook Pro T A 6 G $3,000 $1,000 $500,000 C V & Y 7 B H * 00 8 U J N 9 K