Homework Answers
| Req 1A | |||||||||
| 22000 | 6,000 | ||||||||
| Island Novelties Inc | |||||||||
| Contribution income statement | |||||||||
| Hawaiian Fantasy | Tahitian joy | Total | |||||||
| Amount | % | Amount | % | Amount | % | ||||
| Sales | 440000 | 100% | 660000 | 100% | 1100000 | 100% | |||
| Variable expenses | 198000 | 45% | 198000 | 30% | 396000 | 36% | |||
| Contribution margin | 242000 | 55% | 462000 | 70% | 704000 | 64% | |||
| Fixed expenses | 664,000 | ||||||||
| Net operating income | 40,000 | ||||||||
| Req 1B | |||||||||
| Break even point in dollar sales | 1037500 | ||||||||
| margin of safety in dollars | 62500 | ||||||||
| margin of safety percentage | 5.7% | ||||||||
| Break even point in dollar sales = fixed expense/contribution margin ratio | |||||||||
| 664000/64% | |||||||||
| 1037500 | |||||||||
| margin of safety = actual sales - break even sales | |||||||||
| 1,100,000 - 1,037,500 | |||||||||
| 62500 | |||||||||
| Margin of safety percentage = margin of safety/actual sales | |||||||||
| 62500/1,100,000 | |||||||||
| 5.7% | |||||||||
| Required 2A | |||||||||
| Island Novelties Inc | |||||||||
| Contribution income statement | |||||||||
| Hawaiian Fantasy | Tahitian joy | Samoan | total | ||||||
| Amount | % | Amount | % | Amount | % | amount | % | ||
| Sales | 440000 | 100% | 660000 | 100.0% | 660000 | 100% | 1760000 | 100.0% | |
| Variable expenses | 198000 | 45% | 198000 | 30.0% | 528000 | 80% | 924000 | 52.5% | |
| Contribution margin | 242000 | 55% | 462000 | 70.0% | 132000 | 20% | 836000 | 47.5% | |
| Fixed expenses | 664,000 | ||||||||
| Net operating income | 172,000 | ||||||||
| Req 2b | |||||||||
| Break even point in dollar sales | 1397895 | ||||||||
| margin of safety in dollars | 362105 | ||||||||
| margin of safety percentage | 20.6% | ||||||||
| Break even point in dollar sales = fixed expense/contribution margin ratio | |||||||||
| 664000/47.5% | |||||||||
| 1397895 | |||||||||
| margin of safety = actual sales - break even sales | |||||||||
| 1,760,000 - 1,397,895 | |||||||||
| 362105.3 | |||||||||
| Margin of safety percentage = margin of safety/actual sales | |||||||||
| 362105/1,760,000 | |||||||||
| 20.6% | |||||||||
Add Answer to:
Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost,...
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...
14 Island Novelties, Inc. of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling...
14 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 pints 25 Selling price per unit Variable expense per unit Number of units sold annually Tahitian Joy $ 120 $ 42 7,500 15 Skipped 14,000 eBook Fixed expenses total $580,000 per year. Print References Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format...
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: 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: 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: 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-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 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-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 Fantasy Tahitian Joy Selling price per unit $ 30 $ 125 Variable expense per unit $ 21 $ 25 Number of units sold annually 10,000 5,600 Fixed expenses total $565,500 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—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...
14 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 pints 25 Selling price per unit Variable expense per unit Number of units sold annually Tahitian Joy $ 120 $ 42 7,500 15 Skipped 14,000 eBook Fixed expenses total $580,000 per year. Print References Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format...
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: 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: 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-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-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...
Most questions answered within 3 hours.
-
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 1 hour ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 46 minutes ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 24 minutes ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 1 hour ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 1 hour ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 2 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 2 hours ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 2 hours ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 3 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 3 hours ago -
PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I
DESPERATELY NEED HELP
Consider...
asked 3 hours ago -
DO NOT ANSWER IF YOU ARE UNSKILLED IN THIS AREA! TYPE OR WRITE
EACH ANSWER CLEARLY!!...
asked 3 hours ago