For Blossom Company, variable costs are 70% of sales, and fixed costs are $182,000. Management's net...

Question

Question

For Blossom Company, variable costs are 70% of sales, and fixed costs are $182,000. Managements net income goal is $67,000.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Required sales = $830,000

Working

Variable cost ratio	70%
Contribution margin ratio = 1-Variable cost ratio
Contribution margin ratio	1-70%
Contribution margin ratio	30%

.

Fixed cost + Desired profit [182000+67000]	$ 249,000.00

Sales required (249000/30%)	$ 830,000.00

Add a comment

Answer 2

Similar Homework Help Questions

Compute sales for target net income. (LO 5), AP For Flynn Company, variable costs are 70%...

Compute sales for target net income. (LO 5), AP For Flynn Company, variable costs are 70% of sales, and fixed costs are $195,000. Management's net income goal is $75,000. Compute the required sales in dollars needed to achieve management's target net income of $75,000. (Use the contribution margin approach.)
For Blue Spruce Company, variable costs are 60% of sales, and fixed costs are $238,000. Management’s...

For Blue Spruce Company, variable costs are 60% of sales, and fixed costs are $238,000. Management’s net income goal is $66,000. Compute the required sales in dollars needed to achieve management’s target net income of $66,000. (Use the contribution margin approach.)
For Biswell Company, variable costs are 70% of sales and fixed costs are $188,400. Calculate the...

For Biswell Company, variable costs are 70% of sales and fixed costs are $188,400. Calculate the required sales in dollars that are needed to achieve management’s target operating income of $83,100. (Use the contribution margin approach.)

x Your answer is incorrect. Try again. For Bramble Company, variable costs are 60 % of...

x Your answer is incorrect. Try again. For Bramble Company, variable costs are 60 % of sales, and fixed costs are $225,000. Management's net income goal is $63,000. Compute the required sales in dollars needed to achieve management's target net income of $63,000. (Use the contribution margin approach.) 660,000 Required sales Click if you would like to Show Work for this question: Open Show Work
Help with managerial accounting?? Karney Company has revenues of $500,000, variable costs of $350,000, and fixed...

Help with managerial accounting?? Karney Company has revenues of $500,000, variable costs of $350,000, and fixed costs of $135,000. The sales price per unit is $100 and the Variable Cost per unit is $70, at this level of sales the Fixed Costs per unit is $27. a. compute the contribution margin per unit and the contribution margin ratio b. compute total unfits and sales dollars needed to break even. c. compute total sales dollars needed to achieve a target operating...
How are variable costs calculated in requirement 4 on the income statement? (3,575,000) British Productions performs...

How are variable costs calculated in requirement 4 on the income statement? (3,575,000) British Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There year. No additional shows can be held as the theater is also used by other production companies. The avera cast of 65, each earning a net average of $340 per show. The cast is paid after each show. The other variable program-printing cost of $8 per guest. Annual fixed costs total...

Given the information provided, do the requirements listed: Karney Company has revenues of $500,000, variable costs...

Given the information provided, do the requirements listed: Karney Company has revenues of $500,000, variable costs of $350,000, and fixed costs of $135,000. The sales price per unit is $100 and the Variable Cost per unit is $70, at this level of sales the Fixed Costs per unit is $27. A. Compute the Contribution Margin per unit and the Contribution Margin Ratio. B. Compute total units and sales dollars needed to break-even. C. Compute total sales dollars needed to achieve...
Blossom Company estimates that variable costs will be 70.00% of sales, and fixed costs will total...

Blossom Company estimates that variable costs will be 70.00% of sales, and fixed costs will total $474,000. The selling price of the product is $5. Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. (1) Margin of safety (2) Margin of safety ratio
Company makes electronics. Its sales for 2020 are $1,404,000. Fixed costs are $441,756 and variable costs...

Company makes electronics. Its sales for 2020 are $1,404,000. Fixed costs are $441,756 and variable costs are $856,440. It sold 2,600 units in the year. a)Calculate the contribution margin per unit and the contribution margin ratio. b)Assuming a consistent contribution margin ratio, if its desired operating income is $139,500, what would the company need to sell in units and in dollars to achieve this goal?

Centennial Company makes electronics. Its sales for 2020 are $1,378,000. Fixed costs are $405,620 and variable...

Centennial Company makes electronics. Its sales for 2020 are $1,378,000. Fixed costs are $405,620 and variable costs are $826,800. It sold 2,600 units in the year. Calculate the contribution margin per unit and the contribution margin ratio. (Round contribution margin per unit to 2 decimal places, e.g. 15.20 and contribution margin ratio to 4 decimal places, e.g. 1.4254%.) Contribution margin per unit Contribution margin ratio LINK TO TEXT Assuming a consistent contribution margin ratio, if its desired operating income is...

For Blossom Company, variable costs are 70% of sales, and fixed costs are $182,000. Management's net...

Homework Answers

Add Answer to:
For Blossom Company, variable costs are 70% of sales, and fixed costs are $182,000. Management's net...

Post as a guest

Earn Coins

Compute sales for target net income. (LO 5), AP For Flynn Company, variable costs are 70%...

For Blue Spruce Company, variable costs are 60% of sales, and fixed costs are $238,000. Management’s...

For Biswell Company, variable costs are 70% of sales and fixed costs are $188,400. Calculate the...

x Your answer is incorrect. Try again. For Bramble Company, variable costs are 60 % of...

Help with managerial accounting?? Karney Company has revenues of $500,000, variable costs of $350,000, and fixed...

How are variable costs calculated in requirement 4 on the income statement? (3,575,000) British Productions performs...

Given the information provided, do the requirements listed: Karney Company has revenues of $500,000, variable costs...

Blossom Company estimates that variable costs will be 70.00% of sales, and fixed costs will total...

Company makes electronics. Its sales for 2020 are $1,404,000. Fixed costs are $441,756 and variable costs...

Centennial Company makes electronics. Its sales for 2020 are $1,378,000. Fixed costs are $405,620 and variable...

For Blossom Company, variable costs are 70% of sales, and fixed costs are $182,000. Management's net...

Homework Answers

Add Answer to: For Blossom Company, variable costs are 70% of sales, and fixed costs are $182,000. Management's net...

Post as a guest

Earn Coins

Add Answer to:
For Blossom Company, variable costs are 70% of sales, and fixed costs are $182,000. Management's net...