a | ||
CAREY COMPANY | ||
CVP Income Statement | ||
For the Year Ended December 31, 2020 | ||
Total | Per unit | |
Sales | 1703700 | 27.00 |
Variable costs | 883400 | 14.00 |
Contribution margin | 820300 | 13.00 |
Fixed costs | 549000 | |
Net income/(loss) | 271300 | |
b | ||
Unit sales | 66255 | =63100*1.05 |
New sales price | 25.60 | =27-(2.80*50%) |
New fixed costs | 639000 | =549000+90000 |
CAREY COMPANY | ||
CVP Income Statement | ||
For the Year Ended December 31, 2020 | ||
Total | Per unit | |
Sales | 1696128 | 25.60 |
Variable costs | 742056 | 11.20 |
Contribution margin | 954072 | 14.40 |
Fixed costs | 639000 | |
Net income/(loss) | 315072 |
Carey Company had sales in 2019 of $1,703,700 on 63,100 units. Variable costs totaled $883,400, and...
Carey Company had sales in 2019 of $1,703,700 on 63,100 units. Variable costs totaled 1883,400, and fixed costs totaled $549,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $90,000 Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The...
Exercise 19-05 Carey Company had sales in 2019 of $1,792,200 on 61,800 units. Variable costs totaled $855,200, and fixed costs totaled $487,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $107,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price...
Carey Company had sales in 2019 of $1,923,000 on 64,100 units. Variable costs totaled $897,400, and fixed costs totaled $502,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $98,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The...
Carey Company had sales in 2016 of $1,768,500 on 65,500 units. Variable costs totaled $1,048,000, and fixed costs totaled $513,000. w raw material is available that will decrease the variable costs per unit by 20% (or S 3.20). However, to process the new raw material, fixed operating costs will increase by $91,000. Management feels that one-ha decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department...
Carey Company had sales in 2016 of $1,658,800 on 63,800 units. Variable costs totaled $1,148,400, and fixed costs totaled $467,000 A new raw material is available that will decrease the variable costs per unit by 20% (or $3.60). However, to process the new raw material, fixed operating costs will increase by $94,000. Management feels that one half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction....
Carey Company had sales in 2016 of $1,792,000 on 64,000 units. Variable costs totaled $1.152.000, and fixed costs totaled $479,000 A new raw material is available that will decrease the variable costs per unit by 20% (or $3.60). However, to process the new raw material, fixed operating costs will increase by $98,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers In the form of a sales price reduction. The...
Vaughn Company had sales in 2019 of $1,679,400 on 62,200 units. Variable costs totaled $870,800, and fixed costs totaled $547,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $97,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The...
Question 4 Crane Company had sales in 2019 of $1,586,000 on 61,000 units. Variable costs totaled $854,000, and fixed costs totaled $450,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $90,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price...
Question 4 Waterway Company had sales in 2019 of $1,806,000 on 64,500 units. Variable costs totaled $1,032,000, and fixed costs totaled $508,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $107,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price...
Carey Company had sales in 2019 of $1,727,600 on 61,700 units. Variable costs totaled $987,200, and fixed costs totaled $456,000.A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $101,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this...