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New Operating Income: | ||||||
Square | Round | Total | ||||
New Total Sale | 47,000 | |||||
New Product wise Sale | 60% and 40% | 28,200 | 18,800 | |||
Selling Price per Vase | $ 25 | $ 45 | ||||
Less: Variable Cost per Vase | ||||||
Direct Material | $ -5 | $ -7 | ||||
Direct Labor | $ -4 | $ -5 | ||||
Overhead | $ -2 | $ -3 | ||||
Selling | For Round Selling expesense increase by $1 | $ -1 | $ -2 | |||
Contribution Margin per Vase | $ 13 | $ 28 | ||||
Total Contribution Margin | Sale units*CM per Vase | $ 366,600 | $ 526,400 | $ 893,000 | ||
Less: Fixed Cost | ||||||
Fixed Manufacturing Cost | $-200,000 | |||||
Fixed Selling Expense | 160000+200000 | $-360,000 | ||||
New Operating Income | Correct Answer is B | $ 333,000 | ||||
3. Percy's Porcelain Works manufactures fine vases. The company produces two designs: a square and a...
THE Company produces two products, vases and bowls. The variable costs of producing a vase and a bowl are $22 and $16, respectively. The selling price for a vase is $34 and the selling price for a bowl is $25. THE Company currently has 50 employees who are equally capable of producing both vases and bowls. On average, it takes 4 hours to manufacture a bowl and 5 hours to manufacture a vase. After the products are built they need...
Calculator Perhe Multiple-Product Breakeven Parker Pottery produces a line of vases and equals $31,200. Parker's account 88 amic figurines. Each line uses the same equipment and labor; hence, there are no traceable foxed costs. Common fixed cost the two lines and has gathered the following data for last year: ? $ Price Variable cost $123 Contribution margin Number of units TL Required: If required, round your final answers to nearest whole value 1. Compute the number of vases and the...
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $33,600. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 Variable cost Contribution margin Number of units 1,000 Required: If required, round your final answers to nearest whole value. 1. Compute the...
Morgan Designs manufactures decorative iron railings. In preparing for next year's operations, management has developed the following estimates: Total Per Unit $50.00 Sales (20,000 units) Direct materials $1,000,000 $200,000 $10.00 $50,000 $2.50 Direct labor (variable) Manufacturing overhead: Variable $70,000 $3.50 Fixed $80,000 $4.00 Selling & administrative: Variable $100,000 $5.00 Fixed $30,000 $1.50 Required: a. Unit contribution margin. b. Contribution margin ratio. c. Break-even in dollar sales. d. Margin of safety percentage. e. If the sales volume increases by 20%, with...
Multiple-Product Breakeven Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $33,600. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 $70 Variable cost 30 42 Contribution margin $10 $28 Number of units 1,000 500 Required: If required, round your final...
Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM ratios, and the CM per unit for the two products are shown below: Product Basic Deluxe Total Sales $ 600,000 $ 400,000 $ 1,000,000 Contribution margin ratio 60 % 35 % ? Contribution margin per unit $ 9.00 $ 11.50 ? The company’s fixed expenses total $400,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 1.000.000 Basic Deluxe Total...
Multiple-Product Breakeven Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $30,000. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 $70 Variable cost 30 42 Contribution margin $10 $28 Number of units 1,000 500 Required: 1. Compute the number of...
Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 42,000 units of each product. Sales and costs for each product follow. Product T Product O Sales $ 747,600 $ 747,600 Variable costs 523,320 149,520 Contribution margin 224,280 598,080 Fixed costs 108,280 482,080 Income before taxes 116,000 116,000 Income taxes (35% rate) 40,600 40,600 Net income $...
value: 10.00 points Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM ratios, and the CM per unit for the two products are shown below Product Basic Total Deluxe $600,000 $400,000 $1,000,000 Sales Contribution margin ratio Contribution margin per unit 60% 9.00 11.50 The company's fixed expenses total $400,000 per month. Requirea 1. Prepare a contribution format income statement for the company as a whole. Basic Deluxe Total Amount Amount Amount 2. Compute the overall break-even...
Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 48,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32% rate) Net income Product T $ 825,600 577,920 247,680 113,680 134,000 42,880 $ 91,120 Product O $825,600 165,120 660,480 526,480 134,000 42,880...