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86 Number of customers (a) Sales revenue (a x $200) Variable cost (a x $185) Variable...
Company Name Franklin Finch Number of customers (a) Sales revenue (a x $200) Variable cost (a...
Company Name Franklin Finch Number of customers (a) Sales revenue (a x $200) Variable cost (a x $185) Variable cost (a x $0) Contribution margin 86 86 $ 17,200 $ 17,200 N/A (15,910) N/A 17,200 (15,910) 1,290 Fixed cost 2$ 1,290 1,290 Net income Required a. Reconstruct Franklin's income statement, assuming that it serves 172 customers when it lures 86 customers away from Finch by lowering the sales price to $100 per customer. ɔ. Reconstruct Finch's income statement, assuming that...
The following income statements show equal net income even though quite different cost structures exist for...
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Baird Adams Number of customers (a) (a 86 86 Sales revenue (a x $220) $ 18,920 $ 18,920 Variable cost (a * $175) N/A (15,050) Variable cost (a * $0) 0 N/A Contribution margin 18,920 3,870 Fixed cost (15,050) 0 Net income $ 3,870 $ 3,870 Required a....
The following income statements show equal net income even though quite different cost structures exist for...
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Benson Baird Number of customers (a) 88 88 Sales revenue (a * $210) $ 18,480 $ 18,480 Variable coat (a * $175) N/A (15,400) Variable cont (a $0) 0 N/A Contribution margin 18,480 3,080 Fixed cost (15,400) 0 Net income $ 3,080 $ 3,080 Required a. Reconstruct Benson's...
The following income statements illustrate different cost structures for two competing companies: 85 Income Statements Company...
The following income statements illustrate different cost structures for two competing companies: 85 Income Statements Company Name Solomon Rooney Number of customers (a) Sales revenue (a $220) $ 18,700 $ 18,700 Variable cost (a * $175) N/A (14.875) Variable cost ( 50) Contribution margin 18,700 3.825 Fixed cost (14,875) Net Income $ 3,825 $ 3.825 N/A Required a. Reconstruct Solomon's income statement, assuming that it serves 170 customers when it lures 85 customers away from Rooney by lowering the sales...
The following income statements show equal net income even though quite different cost structures exist for...
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Rundle Perez Number of customers (a) 87 Sales revenue (a * $240) $ 20,880 $ 20,880 Variable cost (a * $185) N/A (16,095) Variable cost (a * $0) 0 N/A Contribution margin 20,880 4,785 Fixed cost (16,095) 0 Net income $ 4,785 $ 4,785 87 Required a. Reconstruct...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Zachary Walton Number of customers (a) 83 83 Sales revenue (ax $210) $ 17,430 $17.430 Variable cost (a X $180) N/A (14,940) Variable cost (a x $0) N/A Contribution margin 17.430 2,490 Fixed cost (14,940) Net Income $ 2,490 $ 2.490 Required a. Reconstruct Zachary's income statement, assuming that it serves 166 customers when it lures 83 customers away from Walton by lowering the...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Stuart Solomon Number of customers (a) 82 82 Sales revenue (a * $220) $ 18,040 $ 18,040 Variable cost (a * $185) N/A (15,170) Variable cost (a * $0) 0 N/A Contribution margin 18,040 2,870 Fixed cost (15,170) 0 Net income $ 2,870 $ 2,870 Required a. Reconstruct Stuart's income statement, assuming that it serves 164 customers when it lures 82 customers away from...
Income Statement Sales revenue (460 units X $39) Variable cost (460 units x $24) Contribution margin...
Income Statement Sales revenue (460 units X $39) Variable cost (460 units x $24) Contribution margin Fixed cost Net income $ 17,940 (11,040) 6,900 (4,900) $ 2,000 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Stuart Company will earn if it experiences a 20 percent increase in revenue. The sales price per unit is not affected....
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the...
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total Variable cost 61,600 Contribution margin $26,400 Total Fixed cost 12,300 Operating income $14,100 Required: 1. Calculate the contribution margin ratio. % 2. Calculate the variable cost ratio. % 3. Calculate the break-even sales revenue for Ashton. $
Calculator Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Paragon Company's controller prepared the following...
Calculator Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Paragon Company's controller prepared the following budgeted income statement for the coming year: Sales $490,000 Total variable cost 302,950 Contribution margin $187,050 64,800 Total fixed cost Operating income 122,250 Required: If required, round ratios to the nearest whole percent. Use rounded amounts in subsequent requirements. Round dollar amounts to the nearest dollar. 1. What is Paragon's variable cost ratio? What is its contribution margin ratio? Variable cost ratio Contribution margin...
Company Name Franklin Finch Number of customers (a) Sales revenue (a x $200) Variable cost (a x $185) Variable cost (a x $0) Contribution margin 86 86 $ 17,200 $ 17,200 N/A (15,910) N/A 17,200 (15,910) 1,290 Fixed cost 2$ 1,290 1,290 Net income Required a. Reconstruct Franklin's income statement, assuming that it serves 172 customers when it lures 86 customers away from Finch by lowering the sales price to $100 per customer. ɔ. Reconstruct Finch's income statement, assuming that...
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Baird Adams Number of customers (a) (a 86 86 Sales revenue (a x $220) $ 18,920 $ 18,920 Variable cost (a * $175) N/A (15,050) Variable cost (a * $0) 0 N/A Contribution margin 18,920 3,870 Fixed cost (15,050) 0 Net income $ 3,870 $ 3,870 Required a....
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Benson Baird Number of customers (a) 88 88 Sales revenue (a * $210) $ 18,480 $ 18,480 Variable coat (a * $175) N/A (15,400) Variable cont (a $0) 0 N/A Contribution margin 18,480 3,080 Fixed cost (15,400) 0 Net income $ 3,080 $ 3,080 Required a. Reconstruct Benson's...
The following income statements illustrate different cost structures for two competing companies: 85 Income Statements Company Name Solomon Rooney Number of customers (a) Sales revenue (a $220) $ 18,700 $ 18,700 Variable cost (a * $175) N/A (14.875) Variable cost ( 50) Contribution margin 18,700 3.825 Fixed cost (14,875) Net Income $ 3,825 $ 3.825 N/A Required a. Reconstruct Solomon's income statement, assuming that it serves 170 customers when it lures 85 customers away from Rooney by lowering the sales...
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Rundle Perez Number of customers (a) 87 Sales revenue (a * $240) $ 20,880 $ 20,880 Variable cost (a * $185) N/A (16,095) Variable cost (a * $0) 0 N/A Contribution margin 20,880 4,785 Fixed cost (16,095) 0 Net income $ 4,785 $ 4,785 87 Required a. Reconstruct...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Zachary Walton Number of customers (a) 83 83 Sales revenue (ax $210) $ 17,430 $17.430 Variable cost (a X $180) N/A (14,940) Variable cost (a x $0) N/A Contribution margin 17.430 2,490 Fixed cost (14,940) Net Income $ 2,490 $ 2.490 Required a. Reconstruct Zachary's income statement, assuming that it serves 166 customers when it lures 83 customers away from Walton by lowering the...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Stuart Solomon Number of customers (a) 82 82 Sales revenue (a * $220) $ 18,040 $ 18,040 Variable cost (a * $185) N/A (15,170) Variable cost (a * $0) 0 N/A Contribution margin 18,040 2,870 Fixed cost (15,170) 0 Net income $ 2,870 $ 2,870 Required a. Reconstruct Stuart's income statement, assuming that it serves 164 customers when it lures 82 customers away from...
Income Statement Sales revenue (460 units X $39) Variable cost (460 units x $24) Contribution margin Fixed cost Net income $ 17,940 (11,040) 6,900 (4,900) $ 2,000 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Stuart Company will earn if it experiences a 20 percent increase in revenue. The sales price per unit is not affected....
Calculator Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Paragon Company's controller prepared the following budgeted income statement for the coming year: Sales $490,000 Total variable cost 302,950 Contribution margin $187,050 64,800 Total fixed cost Operating income 122,250 Required: If required, round ratios to the nearest whole percent. Use rounded amounts in subsequent requirements. Round dollar amounts to the nearest dollar. 1. What is Paragon's variable cost ratio? What is its contribution margin ratio? Variable cost ratio Contribution margin...
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