Homework Answers
operating income = sales-variablr costs-fixed costs
sales=units sold*selling price per unit
variable costs= units sold*variable cost per unit
a)=(101000*6)-(101000*3)-51000
=252000
b)=(201000*4.8)-(201000*3.2)-51000
=270600
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nternational Data Systems' information on revenue and costs is relevant only up to a sales volume...
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International Data Systems' information on revenue and costs is relevant only up to a sales volume of 123,000 units. After 123,000 units, the market becomes saturated and the price per unit falls from $14.00 to $8.80. Also, there are cost overruns at a production volume of over 123,000 units, and variable cost per unit goes up from $7.00 to $7.50. Fixed costs remain the same at $73,000. a. Compute operating income at 123,000 units. Operating income b. Compute operating income...
International Data Systems' information on revenue and costs is relevant only up to a sales volume...
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Galehouse Gas Stations Inc. expects sales to increase from $1,580,000 to $1,780,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 65 percent of sales. His firm has an 8 percent return on sales and pays 30 percent of profits out as dividends. a. What effect will this growth have on funds? decrease by The cash balance will b. If the dividend payout is only 5 percent, what effect will this growth have on funds? The cash...
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Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
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Units: Contribution Margin Fixed Costs Operating Income Sales Revenue Variable Costs SafeNow sells its main product,...
Units:
Contribution Margin
Fixed Costs
Operating Income
Sales Revenue
Variable Costs
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The following information is available for year 1 for Pepper Products: Sales revenue (240,000 units)...
The following information is available for year 1 for Pepper
Products:
Sales revenue (240,000 units)
$
3,840,000
Manufacturing costs
Materials
$
226,000
Variable cash costs
192,000
Fixed cash costs
442,000
Depreciation (fixed)
1,348,000
Marketing and administrative costs
Marketing (variable, cash)
570,000
Marketing depreciation
202,000
Administrative (fixed, cash)
687,000
Administrative depreciation
101,000
Total costs
$
3,768,000
Operating profits
$
72,000
All depreciation charges are fixed and are expected to remain the
same for year 2. Sales volume is expected...
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Problem 2 A company has provided the following data Sales 3.000 units Sales price $70 per...
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Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contributlon format Income statement for the most recent month is shown below Total Per Unit Sales (37,00e units) Variable expenses $ 333,eee 222,000 $9.ee 6.ee Contrifution margin 111,eee $ 3.00 Fixed expenses 5e,000 Net operating income- 61,e00 Required: (Consider each case independently 1 What is the revised net operating income if unit sales increase by 16%? 2 What is the...
International Data Systems' information on revenue and costs is relevant only up to a sales volume of 123,000 units. After 123,000 units, the market becomes saturated and the price per unit falls from $14.00 to $8.80. Also, there are cost overruns at a production volume of over 123,000 units, and variable cost per unit goes up from $7.00 to $7.50. Fixed costs remain the same at $73,000. a. Compute operating income at 123,000 units. Operating income b. Compute operating income...
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Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company's contribution format income statement for the most recent month is shown below: Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $186,000 93,000 93,000 44,000 $ 49,000 Per Unit $6.00 3.00 $3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised...
Units:
Contribution Margin
Fixed Costs
Operating Income
Sales Revenue
Variable Costs
SafeNow sells its main product, ergonomic mouse pads, for $13 each. Its variable cost is $5.10 per pad. Fixed costs are $205,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $260,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 40,000, 45,000, and 75,000 pads. SafeNow Flexible Budget Budget...
The following information is available for year 1 for Pepper
Products:
Sales revenue (240,000 units)
$
3,840,000
Manufacturing costs
Materials
$
226,000
Variable cash costs
192,000
Fixed cash costs
442,000
Depreciation (fixed)
1,348,000
Marketing and administrative costs
Marketing (variable, cash)
570,000
Marketing depreciation
202,000
Administrative (fixed, cash)
687,000
Administrative depreciation
101,000
Total costs
$
3,768,000
Operating profits
$
72,000
All depreciation charges are fixed and are expected to remain the
same for year 2. Sales volume is expected...
Problem 2 A company has provided the following data: Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 a) Compute the breakeven sales in units? b) Prepare a CM format income statement at BE. c) Compute the CM ratio. ) Refer to the original data. Comnute the operating income if the sales volume decrease 10%, total fixed cost increases by 20%, and all other factors remain the same.
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Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4] Miller Company's contributlon format Income statement for the most recent month is shown below Total Per Unit Sales (37,00e units) Variable expenses $ 333,eee 222,000 $9.ee 6.ee Contrifution margin 111,eee $ 3.00 Fixed expenses 5e,000 Net operating income- 61,e00 Required: (Consider each case independently 1 What is the revised net operating income if unit sales increase by 16%? 2 What is the...
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