Question

Check my work Problem 5-28 Sales Mix; Commission Structure; Multiproduct Break-Even Analysis (LO5-9) 10 points Carbex, Inc.,Req 1A Req 1B Req 3A Req 3B 10 points Prepare contribution format income statements for April. (Round your Percentage answeReq 1A Reg 1B Req ЗА Req 3B 10 points Prepare contribution format income statements for May. (Round your Percentage answerslast year. For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-

0 0
Add a comment Improve this question Transcribed image text
Answer #1
Preparing the Contribution Format Income Statement for April:
Carbex, Inc.
Income Statement For April
Standard Deluxe tal
Amount % Amount % Amount %
Unit 5000 3000
Sales $400,000 100.00% % $285,000 100.00% % $685,000 100.00% %
Variable expenses:
Production $125,000 31.25% % $120,000 42.11% % $245,000 35.77% %
Sales commission $100,000 25.00% % $71,250 25.00% % $171,250 25.00% %
tal variable expenses $225,000 56.25% % $191,250 67.11% % $416,250 60.77% %
Contribution margin $175,000 43.75% % $93,750 32.89% % $268,750 39.23% %
Fixed expenses:
Advertising $115,000
Depreciation $24,700
Administrative $68,000
tal fixed expenses $207,700
Net operating income $61,050
Preparing the Contribution Format Income Statement for May
Carbex, Inc.
Income Statement For May
Standard Deluxe tal
Amount % Amount % Amount %
Unit 2000 6000
Sales $160,000 100.00% % $570,000 100.00% % $730,000 100.00% %
Variable expenses:
Production $50,000 31.25% % $240,000 42.11% % $290,000 39.73% %
Sales commission $40,000 25.00% % $142,500 25.00% % $182,500 25.00% %
tal variable expenses $90,000 56.25% % $382,500 67.11% % $472,500 64.73% %
Contribution margin $70,000 43.75% % $187,500 32.89% % $257,500 35.27% %
Fixed expenses:
Advertising $115,000
Depreciation $24,700
Administrative $68,000
tal fixed expenses $207,700
Net operating income $49,800
Part-3 : Computation of Break Even Dollar sales
BEP $ Sale= Fixed Cost/ Overall CM Ratio
=$207700/39.23%= $529442
Part-4 : Computation of Break Even Dollar sales
BEP $ Sale= Fixed Cost/ Overall CM Ratio
=$207700/35.27%= $588886
Add a comment
Know the answer?
Add Answer to:
Check my work Problem 5-28 Sales Mix; Commission Structure; Multiproduct Break-Even Analysis (LO5-9) 10 points Carbex,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Problem 5-28 Sales Mix; Commission Structure; Multiproduct Break-Even Analysis (LO5-9) Carbex, Inc., produces cutlery sets out...

    Problem 5-28 Sales Mix; Commission Structure; Multiproduct Break-Even Analysis (LO5-9) Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The com them to retail department stores throughout the country. The Standard set sells for $82, and the Deluxe set sells for $97. The variable expenses associated with each set are given below. Variable production costs Sales commissions (268 of sales price) Standard Deluxe $26.00 41.00 $ 21.32 $ 25.22 The company's fixed expenses each month are: Advertising Depreciation...

  • PROBLEM 5-28 Sales Mix; Commission Structure; Multiproduct Break-Even Analysis LO5-9 Carbex, Inc., produces cutlery sets out...

    PROBLEM 5-28 Sales Mix; Commission Structure; Multiproduct Break-Even Analysis LO5-9 Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Stan- dard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $60, and the Deluxe set sells for $75. The variable expenses associated with each set are given below. Standard Deluxe Variable production costs........................... Sales commissions (15% of sales price) ............... $15.00 $9.00 $30.00...

  • Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard...

    Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $80, and the Deluxe set sells for $95. The variable expenses associated with each set are given below. points Variable production costs Sales commissions (25% of sales price) Standard $ 25.00 $ 20.00 Deluxe $ 40.00 $ 23.75 8 02:07:14 Skipped The company's fixed...

  • Reg 1A Reg 1B Req ЗА Req 3B Compute the break-even point in dollar sales for...

    Reg 1A Reg 1B Req ЗА Req 3B Compute the break-even point in dollar sales for April. (Round intermediate percentage calculations to 1 decimal place and final answer to the nearest whole dollar.) Break-even point in dollar sales < Req 1B Req 3B > | Regia Req 1A Reg 1B Reg 18 Req3a Reg 3A | Regae | Reg 3B Would the break-even point in May be higher or lower than the break-even point in April? Higher Lower < Req...

  • question 4 Carbex, Inc. produces Cutlery sets out of high quality wood and steel. The company...

    question 4 Carbex, Inc. produces Cutlery sets out of high quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $62, and the Deluxe set sells for $77. The variable expenses associated with each set are given below. Variable production costs Sales commissions (168 of sales price) Standard Deluxe $16.00 $31.00 $ 9.92 $12.32 The company's fed expenses each month are:...

  • Carbex, Inc. produces Cutlery sets out of high-quality wood and steel. The company makes a Standard...

    Carbex, Inc. produces Cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $90, and the Deluxe set sells for $105. The variable expenses associated with each set are given below. Carbex, Inc. Income Statement For May Standard Deluxe Amount * Amount % Total % Amount Variable production costs Sales comissions (S0% of sales price) Standard $...

  • Format for the requirements 1a and 1b are as follows; Carbex, Inc., produces cutlery sets out...

    Format for the requirements 1a and 1b are as follows; Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $86, and the Deluxe set sells for $101. The variable expenses associated with each set are given below. Variable production costs Sales commissions (28% of sales price) orice Standard $ 28.00 $ 24.08 $...

  • Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard...

    Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sell then department stores throughout the country. The Standard set sells for $98, and the Deluxe et sells for $113. The variable expenses and set are given below. Standard Deluxe Variable production costs $ 34.00 $ 49.00 Sales commissions (34% of sales price) $ 33.32 $ 38.42 The company's fixed expenses each month are: Advertising Depreciation Administrative $...

  • Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard...

    Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sell then department stores throughout the country. The Standard set sells for $98, and the Deluxe et sells for $113. The variable expenses and set are given below. Standard Deluxe Variable production costs $ 34.00 $ 49.00 Sales commissions (34% of sales price) $ 33.32 $ 38.42 The company's fixed expenses each month are: Advertising Depreciation Administrative $...

  • Topper Sports, Inc., produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets—the Standard,...

    Topper Sports, Inc., produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets—the Standard, the Deluxe, and the Pro—that are widely used in amateur play. Selected information on the rackets is given below: Standard $ 45.00 Deluxe $ 70.00 Pro $100.00 Selling price per racket Variable expenses per racket: Production Selling (54 of selling price) $ 27.00 $ 2.25 $ 35.00 $ 3.50 $ 36.00 $ 5.00 All sales are made through the company's own retail outlets. The...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT