Homework Answers
Contribution margin income statement
| Sales | 63860 |
| Variable cost (32860+8060) | 40920 |
| Contribution margin | 22940 |
| Fixed cost (4600+6600+5600) | 16800 |
| Operating income | 6140 |
Operating leverage = Contribution margin/Operating income = 22940/6140 = 3.74 Times
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Saved The following income statement is provided for Vargas, Inc. Sales revenue (3,100 units * $20.60...
The following "GAAP-based" income statement is provided for Vargas, Inc. Sales revenue (3,100 units * $20.60...
The following "GAAP-based" income statement is provided for Vargas, Inc. Sales revenue (3,100 units * $20.60 per unit) Cost of goods sold (variable; 3,100 units x $10.60 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (3,100 units * $2.60 per unit) Net income $ 63,860 (32,860) (4,600) 26,400 (6,600) (5,600) (8,060) $ 6,140 Considering a "Contribution Margin" formatted income statement, what is this company's magnitude of operating leverage? (Round your answer to 2 decimal places.)...
The following Income statement is provided for Vargas, Inc. Sales revenue (2,800 units * $20.30 per...
The following Income statement is provided for Vargas, Inc. Sales revenue (2,800 units * $20.30 per unit) Cost of goods sold (variable; 2,800 units * $10.30 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,800 units * $2.30 per unit) Net income $ 56,840 (28,840) (4,300) 23,700 (6,300) (5,300) (6,440) $ 5,660 What is this company's magnitude of operating leverage? (Round your answer to 2 decimal places.) Multiple Choice 0.24 419 0.25
Problem IV Assessing the magnitude of operating lever The following income statement is provided for Vargas,...
Problem IV Assessing the magnitude of operating lever The following income statement is provided for Vargas, Inc. 10 points Sales revenue (2.500 units x 560 per unit) Cost of goods sold (variable: 2.500 units x 520 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,500 units x 54 per unit) Net income $ 150.000 (50,000) (8,000 ) 92,000 (42,000) (10,000) (10.000 S 30.000 a) What is this company's magnitude of operating leveraget b) Use the...
The following income statement is provided for Awesomeness Company for the current year: $ Sales revenue...
The following income statement is provided for Awesomeness Company for the current year: $ Sales revenue (3,000 units x $42 per unit) Cost of goods sold (variable; 3,000 units $15 per unit) 126,000 (45,000) Cost of goods sold (fixed) (9,000) Gross margin 72,000 Administrative salaries Depreciation (11,000) (9,000) (15,000) Supplies (3,000 units x $5 per unit) Net income $ 37,000 What amount was the company's contribution margin? A. $66,000 B. $81,000 C.$37,000 D. $48,000
5 Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling...
5 Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs $274,000 93,000 67,000 38,000 33,000 What is this company's contribution margin? Multiple Choice o $43.000 $76.000 5114000 $143.000 6 Sales revenue (1,700 units * $19.20 per unit) Cost of goods sold (variable; 1,700 units x $9.20 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (1,700 units * $1.20 per unit) Net income $ 32,640 (15,640) (3,200)...
Shown here is an income statement in the traditional format for a firm with a sales...
Shown here is an income statement in the traditional format for a firm with a sales volume of 7,800 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,600+$2.25/unit) Gross profit Operating expenses $34,500 23,150 $11,350 Selling ($1,190 +$0.10/unit) Administration ($3,900 $0.20/unit) 1,970 5,460 $ 3,920 Operating income Required a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Revenue Variable expense Cost of goods sold Selling expenses Administrative expenses Total variable expenses Contribution...
Hemming Co. reported the Tollowing current-year purchases and Sales Top Its Ohly product. Units Sold at...
Hemming Co. reported the Tollowing current-year purchases and Sales Top Its Ohly product. Units Sold at Retail Units Acquired at Cost 215 units @ $10.60 = $2,279 180 units @ $40.60 320 units @ $15.60 = 4,992 Date Activities Jan. 1 Beginning Inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 260 units @ $40.60 415 units @ $20.60 = 8,549 400 units @ $40.60 @ $25.60 = 115...
2. Prepare an income statement. MERIWELL COMPANY Income Statement For the Year Just Completed Sales $...
2. Prepare an income statement. MERIWELL COMPANY Income Statement For the Year Just Completed Sales $ $ 575,000 $ CA Cost of goods sold: Finished goods inventory, beginning Add: Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, ending Gross margin Less operating expenses: Selling expenses Administrative expenses 35,000 375,100 410,100 (70,000) 340,100 (84,000) (122,000) (575,000) Sales 781,000 3. What was the average cost per unit for direct materials and factory depreciation? (R answers to 2 decimal...
Ch 08 Ex 8-3 G Saved Help Save 1 Tempo Company's fixed budget (based on sales...
Ch 08 Ex 8-3 G Saved Help Save 1 Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units x $215 per unit) Cost of goods sold Direct materials $3,440,000 10 points $368,000 Direct labor 688,000 432,000 168,000 Production supplies Plant manager salary Gross profit Selling expenses 1,656,000 1,784,000 еВok Sales commissions 128,000 256,000 Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip 484,000 100,000 Hint 218,000 188,000 158,000...
Martinez Inc. started operations on 1/1/2020. The following forecast income statement for the first year of...
Martinez Inc. started operations on 1/1/2020. The following forecast income statement for the first year of trading has been prepared using absorption costing for the budgeted production and sale of 10,000 units: Martinez Inc. Income Statement for the Budgeted Production and sale of 10,000 units $ Sales revenue (10,000 units @ $150 per unit) 1,500,000 Less: cost of goods sold (COGS) Variable COGS: direct materials (10,000 units @ $18 per unit) (180,000) Variable COGS: direct labor (10,000 units @ $20...
The following "GAAP-based" income statement is provided for Vargas, Inc. Sales revenue (3,100 units * $20.60 per unit) Cost of goods sold (variable; 3,100 units x $10.60 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (3,100 units * $2.60 per unit) Net income $ 63,860 (32,860) (4,600) 26,400 (6,600) (5,600) (8,060) $ 6,140 Considering a "Contribution Margin" formatted income statement, what is this company's magnitude of operating leverage? (Round your answer to 2 decimal places.)...
The following Income statement is provided for Vargas, Inc. Sales revenue (2,800 units * $20.30 per unit) Cost of goods sold (variable; 2,800 units * $10.30 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,800 units * $2.30 per unit) Net income $ 56,840 (28,840) (4,300) 23,700 (6,300) (5,300) (6,440) $ 5,660 What is this company's magnitude of operating leverage? (Round your answer to 2 decimal places.) Multiple Choice 0.24 419 0.25
Problem IV Assessing the magnitude of operating lever The following income statement is provided for Vargas, Inc. 10 points Sales revenue (2.500 units x 560 per unit) Cost of goods sold (variable: 2.500 units x 520 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,500 units x 54 per unit) Net income $ 150.000 (50,000) (8,000 ) 92,000 (42,000) (10,000) (10.000 S 30.000 a) What is this company's magnitude of operating leveraget b) Use the...
The following income statement is provided for Awesomeness Company for the current year: $ Sales revenue (3,000 units x $42 per unit) Cost of goods sold (variable; 3,000 units $15 per unit) 126,000 (45,000) Cost of goods sold (fixed) (9,000) Gross margin 72,000 Administrative salaries Depreciation (11,000) (9,000) (15,000) Supplies (3,000 units x $5 per unit) Net income $ 37,000 What amount was the company's contribution margin? A. $66,000 B. $81,000 C.$37,000 D. $48,000
5 Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs $274,000 93,000 67,000 38,000 33,000 What is this company's contribution margin? Multiple Choice o $43.000 $76.000 5114000 $143.000 6 Sales revenue (1,700 units * $19.20 per unit) Cost of goods sold (variable; 1,700 units x $9.20 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (1,700 units * $1.20 per unit) Net income $ 32,640 (15,640) (3,200)...
Shown here is an income statement in the traditional format for a firm with a sales volume of 7,800 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,600+$2.25/unit) Gross profit Operating expenses $34,500 23,150 $11,350 Selling ($1,190 +$0.10/unit) Administration ($3,900 $0.20/unit) 1,970 5,460 $ 3,920 Operating income Required a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Revenue Variable expense Cost of goods sold Selling expenses Administrative expenses Total variable expenses Contribution...
Hemming Co. reported the Tollowing current-year purchases and Sales Top Its Ohly product. Units Sold at Retail Units Acquired at Cost 215 units @ $10.60 = $2,279 180 units @ $40.60 320 units @ $15.60 = 4,992 Date Activities Jan. 1 Beginning Inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 260 units @ $40.60 415 units @ $20.60 = 8,549 400 units @ $40.60 @ $25.60 = 115...
2. Prepare an income statement. MERIWELL COMPANY Income Statement For the Year Just Completed Sales $ $ 575,000 $ CA Cost of goods sold: Finished goods inventory, beginning Add: Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, ending Gross margin Less operating expenses: Selling expenses Administrative expenses 35,000 375,100 410,100 (70,000) 340,100 (84,000) (122,000) (575,000) Sales 781,000 3. What was the average cost per unit for direct materials and factory depreciation? (R answers to 2 decimal...
Ch 08 Ex 8-3 G Saved Help Save 1 Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units x $215 per unit) Cost of goods sold Direct materials $3,440,000 10 points $368,000 Direct labor 688,000 432,000 168,000 Production supplies Plant manager salary Gross profit Selling expenses 1,656,000 1,784,000 еВok Sales commissions 128,000 256,000 Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip 484,000 100,000 Hint 218,000 188,000 158,000...
Martinez Inc. started operations on 1/1/2020. The following forecast income statement for the first year of trading has been prepared using absorption costing for the budgeted production and sale of 10,000 units: Martinez Inc. Income Statement for the Budgeted Production and sale of 10,000 units $ Sales revenue (10,000 units @ $150 per unit) 1,500,000 Less: cost of goods sold (COGS) Variable COGS: direct materials (10,000 units @ $18 per unit) (180,000) Variable COGS: direct labor (10,000 units @ $20...
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