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Statementshowing Computations | |
Paticulars | Amount |
Sales | 1,118,000.00 |
Less Variable Expenses | |
Variable manufacturing Expenses | 429,000.00 |
Variable selling and admin Expenses | 91,000.00 |
Totaal Variable costs | 520,000.00 |
a) Contribution Margin = Sales - VC | 598,000.00 |
b) Contribution Margin Ratio =598,000/1118,000 | 53.49% |
c) | |
New Contribution =598,000*103% | 615,940.00 |
Less Fixed expenses | |
Fixed manufacturing Expenses | 288,000.00 |
Fixed selling and admin Expenses | 228,000.00 |
Total fixed costs | 516,000.00 |
Net operating income | 99,940.00 |
Q3 | |
Sales price per unit | 12.00 |
Variable cost per unit | 8.00 |
Contribution per unit | 4.00 |
Fixed costs | 400,000.00 |
Target Profit | 80,000.00 |
Target contribution | 480,000.00 |
No of units to be sold = 480,000/4 | 120,000.00 |
A cement manufacturer has supplied the following data: Tons of cement produced and sold .... Sales revenue. Variable manufacturing expense.... Fixed manufacturing expense....... Variable selling and administrative expense Fixed selling and administrative expense..... Net operating income...... 260,000 $1,118,000 $429,000 $288,000 $91,000 $228,000 $82,000 Required: a. What is the company's unit contribution margin? b. What is the company's contribution margin ratio? c. If the company increases its unit sales volume by 3% without increasing its fixed expenses, what will total net...
Question 2 A cement manufacturer has supplied the following data: Tons of cement produced and sold.... Sales revenue Variable manufacturing expense....... Fixed manufacturing expense...... Variable selling and administrative expense Fixed selling and administrative expense ..... Net operating income.... 260,000 $1,118,000 $429,000 $288,000 $91,000 $228,000 $82,000 Required: a. What is the company's unit contribution margin? b. What is the company's contribution margin ratio? c. If the company increases its unit sales volume by 3% without increasing its fixed expenses, what will...
Mailings Review View Table Design Layout References Aa A APA A Aabbccddee Aabbccddee AaBbCcDc AaBbccdde A Heading 1 Heading 2 E Normal No Spacing Income statement information is presented here for two companies: [1] General motors Ltd. Microsoft Ltd. Sales $1,460,000 [6] Sales returns and allowances 28,000 48,000 Net sales Font Size 2,130,000 Cost of goods sold 657,000 1,172,000 Gross profit [2] [7] Operating expenses 580,000 [8] Income from operations 310,000 Other revenues Other expenses 4,100 Income before income tax...
Serfass Corporation's contribution format income statement for July appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income $369,000 147,600 221,400 55,350 $166,050 The degree of operating leverage is closest to: Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $31,000 and variable expenses of $10,780. Product X96N had sales of $44,000 and variable expenses of $18,470. The fixed expenses of the entire company were $46,060. The break-even point for...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
465,000
Beginning merchandise inventory
$
31,000
Purchases
$
310,000
Ending merchandise inventory
$
15,500
Fixed selling expense
$
?
Fixed administrative expense
$
18,600
Variable selling expense
$
23,250
Variable administrative expense
$
?
Contribution margin
$
93,000
Net operating income
$
27,900
Prepare a contribution format income statement.
Prepare a traditional format income statement.
Calculate the selling price per unit, the variable...
A cement manufacturer has supplied the following data: Tons of cement produced and sold 240,000 Sales revenue $ 1,056,000 Variable manufacturing expense $ 428,000 Fixed manufacturing expense $ 287,000 Variable selling and administrative expense $ 52,000 Fixed selling and administrative expense $ 227,000 Net operating income $ 62,000 What is the company's unit contribution margin? Multiple Choice $2.00 per unit $0.42 per unit $4.40 per unit $2.40 per unit
Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: > $ 315,000 $ 21,000 $ 210,000 10,500 Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income > us us us us us us us 12,600 15,750 63,000 18,900 Required: 1. Prepare a contribution format income statement. 2. Prepare a...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 315,000 Beginning merchandise inventory $ 21,000 Purchases $ 210,000 Ending merchandise inventory $ 10,500 Fixed selling expense $ ? Fixed administrative expense $ 12,600 Variable selling expense $ 15,750 Variable administrative expense $ ? Contribution margin $ 63,000 Net operating income $ 18,900 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price...
Sheridan, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31: $ 795,000 381,600 413,400 Sales revenue Cost of goods sold Gross margin Operating expenses Selling expense Administrative expense Net operating income $ 24.150 51,800 75,950 $ 337,450 Sheridan sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to...
Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $28,000 and variable expenses of $10,480 Product x96N had sales of $41000 and variable expenses of $18,500. The fixed expenses of the entire company were $46,030. The break-even point for the entire company is closest to: Multiple Choice $79,322 $75,010 $79,362 $46,030 A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing...