Homework Answers
| 1A. | Contribution income statement | ||||||||||||
| Hawaiian fantasy | Tahitian joy | Total | |||||||||||
| Amount | % | Amount | % | Amount | % | ||||||||
| Sales | 350000 | 100% | 900000 | 100% | 1250000 | 100% | |||||||
| (14000*25) | (7500*120) | ||||||||||||
| Less: Variable expenses | 210000 | 60.00% | 315000 | 35.00% | 525000 | 42.00% | |||||||
| (14000*15) | (7500*42) | ||||||||||||
| Contribution margin | 140000 | 40.00% | 585000 | 65.00% | 725000 | 58.00% | |||||||
| Less: Fixed expenses | 580000 | ||||||||||||
| Operating income | 145000 | ||||||||||||
| 1B. | Break-even point in dollar sales=Fixed expenses/Contribution margin ratio for the company as a whole=580000/58%=$ 1000000 | ||||||||||||
| Margin of safety in dollars=Actual sales-Break-even point sales=1250000-1000000=$ 250000 | |||||||||||||
| Margin of safety in %=Margin of safety in dollars/Actual sales=250000/1250000=0.20=20% | |||||||||||||
| 2A. | Contribution income statement | ||||||||||||
| Hawaiian fantasy | Tahitian joy | Samoan Delight | Total | ||||||||||
| Amount | % | Amount | % | Amount | % | Amount | % | ||||||
| Sales | 350000 | 100% | 900000 | 100% | 650000 | 100% | 1900000 | 100% | |||||
| (14000*25) | (7500*120) | (13000*50) | |||||||||||
| Less: Variable expenses | 210000 | 60.00% | 315000 | 35.00% | 520000 | 80.00% | 1045000 | 55.00% | |||||
| (14000*15) | (7500*42) | (13000*40) | |||||||||||
| Contribution margin | 140000 | 40.00% | 585000 | 65.00% | 130000 | 20.00% | 855000 | 45.00% | |||||
| Less: Fixed expenses | 580000 | ||||||||||||
| Operating income | 275000 | ||||||||||||
| 2B. | Break-even point in dollar sales=Fixed expenses/Contribution margin ratio for the company as a whole=580000/45%=$ 1288889 | ||||||||||||
| Margin of safety in dollars=Actual sales-Break-even point sales=1900000-1288889=$ 611111 | |||||||||||||
| Margin of safety in %=Margin of safety in dollars/Actual sales=611111/1900000=0.3216=32.2% | |||||||||||||
| I appreciate your ratings | |||||||||||||
Add Answer to:
14 Island Novelties, Inc. of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Fantasy $ 20 $ 13 Tahitian Joy s 100 $ 30 7,200 34,000 Fixed expenses total $651,900 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc. of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc. of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit Variable expense per unit Number of units sold annually Fixed expenses total $580,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Tahitian Joy Fantasy $ $ Selling price per unit Variable expense per unit Number of units sold annually 20 110 9 33 22,000 6,000 Fixed expenses total $664,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Fantasy Tahitian Joy 12e Selling price per unit Variable expense per unit Number of units sold annually 14, eee 7,500 Required Fixed expenses total $580,000 per year. Required: 1. Assuming the sales mix given above, do the following a. Prepare a contribution format income statement showing both dollar and percent columns for each...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Tahitian Joy Selling price per unit Variable expense per unit Number of units sold annually alian Fantasy $ 28 $ 9 18, ese $ $ 140 35 6, ege Fixed expenses total $710,700 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 16 $ 120 Variable expense per unit $ 8 $ 42 Number of units sold annually 24,000 6,400 Fixed expenses total $580,500 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products-Hawallan Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products-Hawallan Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Tahitian Joy Selling price per unit Variable expense per unit Number of units sold annually Fantasy $ 12 $ 9 36,88 $ $ 120 48 5,480 Fixed expenses total $437,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format Income statement showing both...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Hawaiian Tahitian 15 $ 100 Selling price per unit Variable expense per unit Number of units sold annually 20.000 5,000 Fixed expenses total $475,800 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Fixed expenses total $448,900 per year. Hawaiian Fantasy Tahitian Joy Selling price per unit $ 12 $ 100 Variable expense per unit $ 6 $ 25 Number of units sold annually 20,000 5,100 Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Tahitian Fantasy Joy $ 15 $ 100 95 20 20.000 5,000 Fixed expenses total $475,800 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Fantasy $ 20 $ 13 Tahitian Joy s 100 $ 30 7,200 34,000 Fixed expenses total $651,900 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc. of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit Variable expense per unit Number of units sold annually Fixed expenses total $580,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Tahitian Joy Fantasy $ $ Selling price per unit Variable expense per unit Number of units sold annually 20 110 9 33 22,000 6,000 Fixed expenses total $664,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Fantasy Tahitian Joy 12e Selling price per unit Variable expense per unit Number of units sold annually 14, eee 7,500 Required Fixed expenses total $580,000 per year. Required: 1. Assuming the sales mix given above, do the following a. Prepare a contribution format income statement showing both dollar and percent columns for each...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Tahitian Joy Selling price per unit Variable expense per unit Number of units sold annually alian Fantasy $ 28 $ 9 18, ese $ $ 140 35 6, ege Fixed expenses total $710,700 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement...
Island Novelties, Inc., of Palau makes two products-Hawallan Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Tahitian Joy Selling price per unit Variable expense per unit Number of units sold annually Fantasy $ 12 $ 9 36,88 $ $ 120 48 5,480 Fixed expenses total $437,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format Income statement showing both...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Hawaiian Tahitian 15 $ 100 Selling price per unit Variable expense per unit Number of units sold annually 20.000 5,000 Fixed expenses total $475,800 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Tahitian Fantasy Joy $ 15 $ 100 95 20 20.000 5,000 Fixed expenses total $475,800 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and...
Most questions answered within 3 hours.
-
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 6 minutes ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 10 minutes ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 39 minutes ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 55 minutes ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 4 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 4 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 5 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 5 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 5 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 5 hours ago -
A manufacturer of banana chips would like to know whether its
bag filling machine works correctly...
asked 5 hours ago -
Complete the chapter case, "Turnover Analysis".
Chapter Case
Turnover Analysis
You recently completed your company’s new...
asked 5 hours ago