Requirement (a):
Kameria Inc. | ||||
Contribution Margin Statement | ||||
For the First Two Quarters in 2019 | ||||
Q1 | Q2 | |||
Sales | $10,250,000 | $19,375,000 | ||
Less: Variable Costs | ||||
Variable manufacturing costs | $4,100,000 | $7,750,000 | ||
Variable Advertising costs | $2,870,000 | $6,970,000 | $5,425,000 | $13,175,000 |
Contribution margin | $3,280,000 | $6,200,000 | ||
Less: Fixed costs | ||||
Fixed manufacturing overhead costs | $420,000 | $420,000 | ||
Fixed advertising costs | $105,000 | $525,000 | $105,000 | $525,000 |
Net income | $2,755,000 | $5,675,000 |
Explanations:
Sales = Sales volume x Selling price per unit
Variable manufacturing costs = Sales volume x Variable manufacturing costs per unit manufactured
Variable Advertising costs = Sales volume x Variable advertising costs per unit sold
AP-3A LO 2 3 4 Cameria Inc. is a publicly traded company that manufactures high quality...
Costing and Pricing Strategies Chapter 6 AP-3A LO 2 3 4 Kameria Inc. is a public you to recommend a met the company's quarterly is a publicly traded company that manufactures high da method of inventory costing. The company will use your recommendation to tures high quality headsets. The company has asked any's quarterly income statements. The following will use your recommendation to create following data are for the first two quarters of 2019. oble Manufacturing Costs per unit manufactured...
Calusa Inc. is a publicly traded company that manufactures retractable water hoses. The company has asked you to recommend a method of inventory costing. The company will use your recommendation to create the company’s monthly income statements. The following data are for the first two months of 2020. Jan 2020 Feb 2020 Beginning Inventory (in units) -0- 38,000 Production Volume (in units) 120,000 120,000 Sales Volume (in units) 82,000 155,000 Selling Price per Unit 125 125 Variable Manufacturing Costs per...
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Exercise 06-3 Income reporting under absorption costing and
variable costing LO P2
Sims Company, a manufacturer of tablet computers, began
operations on January 1, 2019. Its cost and sales information for
this year follows.
Manufacturing costs
Direct materials
$
30
per unit
Direct labor
$
50
per unit
Overhead costs
Variable
$
20
per unit
Fixed
$
8,400,000
(per year)
Selling and administrative costs for the year
Variable
$
725,000
Fixed
$
4,250,000
Production and sales for the year
Units...
Exercise 06-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows Manufacturing costs Direct materials Direct labor Overhead costs Variable 30 per unit 50 per unit 40 per unit $6,300,en (per year) Fixed Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $...
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Help Problem 11-28 Determining the break-even point and preparing a contribution margin income stat LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $170 per unit. The company incurs variable manufacturing cost $83 per unit Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $498,000, and fixed selling and administrative costs are $236,400 per year Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials 4 Direct labor 10 Variable manufacturing 4 overhead Variable selling and adminiatrative 1. Total variable coat per $ 19 unit Fixed cots per month Fixed manufacturing $105,000 overhead Fixed selling and adminiatrative 169,000 Total fixed cost per month $274,000 The product sells for $52 per unit. Producttion and sales data for July and August, the first two momths of...
7 Exercise 18-13 Forecasted income statement LO C2 points Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The company's annual fixed costs are $629,000. The sales manager predicts that annual sales of the company's product will soon reach 39,900 units and its price will increase to $199 per unit. According to the production manager, variable costs are expected to Increase to $139 per unit, but fixed costs...
Handout 2 ACCT 5140 - Cost Accounting Chapter 3 - Cost Volume Profit (CVP) Analysis Powell Company manufactures a product that it sells for $20 per unit. For 2020 the company expects to produce 30,000 units and sell 28.000 units. Variable manufacturing costs will be $8 per unit and variable selling expense $4 per unit. Total fixed manufacturing costs will be $120,000 and total fixed selling & administrative expense $60,000. The company's tax rate is 20%. Required: 1. Prepare a...