Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The...
Evergreen Corporation manufactures circuit boards and is in the
process of preparing next year's budget. The pro forma income
statement for the current year is presented below.
| Sales | $ | 3,900,000 | |||
| Cost of sales: | |||||
| Direct material | $ | 540,000 | |||
| Direct labor | 450,000 | ||||
| Variable overhead | 295,000 | ||||
| Fixed overhead | 800,000 | 2,085,000 | |||
| Gross profit | $ | 1,815,000 | |||
| Selling and General & Admin. Exp. | |||||
| Variable | 790,000 | ||||
| Fixed | 290,000 | 1,080,000 | |||
| Operating income | $ | 735,000 | |||
The contribution margin ratio for the current year is:
Homework Answers
Total Variable costs
= 540,000+450,000+295,000+790,000 = 2,075,000
Contribution margin ratio
= (Selling price - Total Variable costs) /Selling price
= (3,900,000-2,075,000)/3,900,000
= 46.8%
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Evergreen Corporation manufactures circuit boards and is in the
process of preparing next year's budget. The...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,900,000 Cost of sales: Direct material $ 540,000 Direct labor 450,000 Variable overhead 295,000 Fixed overhead 800,000 2,085,000 Gross profit $ 1,815,000 Selling and General & Admin. Exp. Variable 790,000 Fixed 290,000 1,080,000 Operating income $ 735,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,500,000 Cost of sales: Direct Material $ 500,000 Direct labor 250,000 Variable Overhead 275,000 Fixed Overhead 600,000 1,625,000 Gross Profit $ 1,875,000 Selling and General & Admin. Exp. Variable 750,000 Fixed 250,000 1,000,000 Operating Income $ 875,000 The break-even point (rounded to the nearest dollar) for Evergreen Corporation for the current...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,720,000 Cost of sales: Direct material $ 522,000 Direct labor 360,000 Variable overhead 286,000 Fixed overhead 710,000 1,878,000 Gross profit $ 1,842,000 Selling and General & Admin. Exp. Variable 772,000 Fixed 272,000 1,044,000 Operating income $ 798,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. $3,540,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $504,000 270,000 277,000 620,000 1,671,000 $1,869,000 754,000 254,000 1,008,000 $ 861,000 The break-even point (rounded to the nearest dollar) for Evergreen Corporation for the current year is: (Round...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. $3,750,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $526,000 380,000 288,000 730,000 1,924,000 $1,836,000 776,000 276,000 1,052,000 784,000 $ For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a...
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Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. $3,680,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $518,000 340, eee 284, eee 690,00 1,832, eee $1,848,000 768,888 268,eee 1,036, eee $ $12,eee For the coming year, the management of Evergreen Corporation anticipates a 5 percent...
Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro...
Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 1,500,000 Cost of sales: Direct Material $ 250,000 Direct labor 150,000 Variable Overhead 75,000 Fixed Overhead 100,000 575,000 Gross Profit $ 925,000 Selling and G&A Variable 200,000 Fixed 250,000 450,000 Operating Income $ 475,000 The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:
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Top executive officers of Thornton Company, a merchandising firm, are preparing the next year's budget. The controller has provided everyone with the current year's projected income statement. Current Year Sales revenue $1,800,000 1,260,000 540,000 254,000 Cost of goods sold Gross profit Selling & administrative expenses $ 286,000 Net income Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost $74,000. The president has announced...
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Top executive officers of Jordan Company, a merchandising firm, are preparing the next year's budget. The...
Top executive officers of Jordan Company, a merchandising firm, are preparing the next year's budget. The controller has provided everyone with the current year's projected income statement. Current Year $2,100,000 1,470,000 630,000 286,000 Sales revenue Cost of goods sold Gross profit Selling & administrative expenses $ 344,000 Net income Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost of $76,000. The president has...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. $3,540,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $504,000 270,000 277,000 620,000 1,671,000 $1,869,000 754,000 254,000 1,008,000 $ 861,000 The break-even point (rounded to the nearest dollar) for Evergreen Corporation for the current year is: (Round...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. $3,750,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $526,000 380,000 288,000 730,000 1,924,000 $1,836,000 776,000 276,000 1,052,000 784,000 $ For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a...
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. $3,680,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $518,000 340, eee 284, eee 690,00 1,832, eee $1,848,000 768,888 268,eee 1,036, eee $ $12,eee For the coming year, the management of Evergreen Corporation anticipates a 5 percent...
Top executive officers of Thornton Company, a merchandising firm, are preparing the next year's budget. The controller has provided everyone with the current year's projected income statement. Current Year Sales revenue $1,800,000 1,260,000 540,000 254,000 Cost of goods sold Gross profit Selling & administrative expenses $ 286,000 Net income Cost of goods sold is usually 70 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales plus a fixed cost $74,000. The president has announced...
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