Homework Answers
| Sales | $ 75,000 | $ 84,000 | |
| Variable Costs | $ 25,000 | $ 26,250 | |
| Contribution Margin | $ 50,000 | $ 57,750 | |
| Fixed Costs | $ 20,000 | $ 27,000 | |
| Net Operating Income | $ 30,000 | $ 30,750 | $ -750 |
Options B is correct
Add Answer to:
Maria is in management at Pandora, a chain jewelry store with a national footprint. She is...
Judy Billows, owner of Billows Manufacturing has called a meeting with her department heads. She presents...
Judy Billows, owner of Billows Manufacturing has called a meeting with her department heads. She presents last year's contribution margin income statement (see below), which is based on a sales volume of 100,000 units (one product offering) and operating income of $125,000. She issues a challenge to her vice presidents to increase operating income in the next year by 20% to $150,000. The VP of Marketing states that if the sales price were reduced by 10% to $22.50 per unit,...
Stratford Company distributes a lightweight lawn chair that sells for $40 per unit. Variable expenses are...
Stratford Company distributes a lightweight lawn chair that sells for $40 per unit. Variable expenses are $18 per unit, and fixed expenses total $220,000 annually. Results for last year are as follows: Sales (20,000 units) Variable expenses $ 800,000 360,000 Contribution margin Fixed expenses 440,000 220,000 Operating income $ 220,000 Required: 1. Calculate the company's CM ratio and its break-even point in sales dollars and in units. CM ratio Break-even point in sales dollars Break-even point in units 2. If...
Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. Here is...
Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April, when she expects to produce and sell 3,000 meals: amount / per unit Sales revenue $ 18,000 / $ 6.00 Costs of meals produced 13,500 / 4.50 Gross profit $ 4,500 / $ 1.50 Administrative costs 2,100 / 0.70 Operating profit $ 2,400 / $ 0.80 Fixed costs included in this income statement are $4,500 for meal production and...
Klein Company distributes a high-quality bird feeder that sells for $55 per unit. Variable costs are...
Klein Company distributes a high-quality bird feeder that sells for $55 per unit. Variable costs are $22 per unit, and fixed costs total $273,000 annually. Required: Answer the following independent questions: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in sales dollars. Break-even point in sales dollars 3. The company estimates that sales will increase by $61,000 during the coming year due to increased demand. By how much should operating income...
Please help me with the table, I don't know why I failed it. Also, question 6,...
Please help me with the table, I don't know why I failed it.
Also, question 6, the question is the amount by which the
advertising can be increased by is?
Note: the table at the top has the original data, for fixed and
variable cost, also selling price. This is the whole question
Klein Company distributes a high-quality bird feeder that sells for $45 per unit. Variable costs are $18 per unit, and fixed costs total $180,000 annually. 5-a. Refer...
Question 1 Pharoah Willis is the advertising manager for Bargain Shoe Store. She is currently working...
Question 1 Pharoah Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $14,000 in fixed costs to the $133,000 currently spent. In addition, Pharoah is proposing that a 5% price decrease ($20 to $19) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $12 per pair of...
5.b. Would you recommend that the company do as the sales manager suggests? Yes ONO 6....
5.b. Would you recommend that the company do as the sales manager suggests? Yes ONO 6. Refer to the original data. Assume again that the company sold 30,000 units last year. The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission by $5 per unit. He thinks that this move, combined with some increase in advertising, would increase annual unit sales by 50%. By how much could advertising be...
Problem 4-18 Basic Cost-Volume-Profit Analysis (LO1, LO3, LO4, LOS, LOS] Klein Company distributes a high-quality bird...
Problem 4-18 Basic Cost-Volume-Profit Analysis (LO1, LO3, LO4, LOS, LOS] Klein Company distributes a high-quality bird feeder that sells for $20 per unit. Variable costs are $6 per unit, and fixed costs total $196,000 annually. points Required: Answer the following independent questions: Skipped 1. What is the product's CM ratio? CM ratio eBook Ask 2. Use the CM ratio to determine the break-even point in sales dollars. Print Break-even point in sales dollars CS 3. The company estimates that sales...
Oriole Willis is the advertising manager for Bargain Shoe Store. She is currently working on a...
Oriole Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $39,000 in fixed costs to the $423,000 currently spent. In addition, Oriole is proposing that a 5% price decrease ($60 to $57) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $36 per pair of shoes. Management...
Mary Willis is the advertising manager for Concord Shoe Store. She is currently working on a...
Mary Willis is the advertising manager for Concord Shoe Store.
She is currently working on a major promotional campaign. Her ideas
include the installation of a new lighting system and increased
display space that will add $54,600 in fixed costs to the $399,000
currently spent. In addition, Mary is proposing that a 5% price
decrease ($60 to $57) will produce a 20% increase in sales volume
(20,000 to 24,000). Variable costs will remain at $36 per pair of
shoes. Management...
Stratford Company distributes a lightweight lawn chair that sells for $40 per unit. Variable expenses are $18 per unit, and fixed expenses total $220,000 annually. Results for last year are as follows: Sales (20,000 units) Variable expenses $ 800,000 360,000 Contribution margin Fixed expenses 440,000 220,000 Operating income $ 220,000 Required: 1. Calculate the company's CM ratio and its break-even point in sales dollars and in units. CM ratio Break-even point in sales dollars Break-even point in units 2. If...
Klein Company distributes a high-quality bird feeder that sells for $55 per unit. Variable costs are $22 per unit, and fixed costs total $273,000 annually. Required: Answer the following independent questions: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in sales dollars. Break-even point in sales dollars 3. The company estimates that sales will increase by $61,000 during the coming year due to increased demand. By how much should operating income...
Please help me with the table, I don't know why I failed it.
Also, question 6, the question is the amount by which the
advertising can be increased by is?
Note: the table at the top has the original data, for fixed and
variable cost, also selling price. This is the whole question
Klein Company distributes a high-quality bird feeder that sells for $45 per unit. Variable costs are $18 per unit, and fixed costs total $180,000 annually. 5-a. Refer...
Question 1 Pharoah Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $14,000 in fixed costs to the $133,000 currently spent. In addition, Pharoah is proposing that a 5% price decrease ($20 to $19) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $12 per pair of...
5.b. Would you recommend that the company do as the sales manager suggests? Yes ONO 6. Refer to the original data. Assume again that the company sold 30,000 units last year. The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission by $5 per unit. He thinks that this move, combined with some increase in advertising, would increase annual unit sales by 50%. By how much could advertising be...
Problem 4-18 Basic Cost-Volume-Profit Analysis (LO1, LO3, LO4, LOS, LOS] Klein Company distributes a high-quality bird feeder that sells for $20 per unit. Variable costs are $6 per unit, and fixed costs total $196,000 annually. points Required: Answer the following independent questions: Skipped 1. What is the product's CM ratio? CM ratio eBook Ask 2. Use the CM ratio to determine the break-even point in sales dollars. Print Break-even point in sales dollars CS 3. The company estimates that sales...
Oriole Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $39,000 in fixed costs to the $423,000 currently spent. In addition, Oriole is proposing that a 5% price decrease ($60 to $57) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $36 per pair of shoes. Management...
Mary Willis is the advertising manager for Concord Shoe Store.
She is currently working on a major promotional campaign. Her ideas
include the installation of a new lighting system and increased
display space that will add $54,600 in fixed costs to the $399,000
currently spent. In addition, Mary is proposing that a 5% price
decrease ($60 to $57) will produce a 20% increase in sales volume
(20,000 to 24,000). Variable costs will remain at $36 per pair of
shoes. Management...
Most questions answered within 3 hours.
-
Write a program to control a bread machine. Allow the user to
input the type of...
asked 1 minute ago -
Turn design in research is an examination of:
Question 5 options:
A)
What and how something...
asked 7 minutes ago -
A particle with a net charge of 1.2 mC is placed in a uniform
electric field...
asked 17 minutes ago -
For questions 1 and 2 below, using what you
have learned in class, analyze and discuss...
asked 17 minutes ago -
Zinc sulfide reacts with oxygen according to the reaction:
2ZnS(s)+3O2(g)→2ZnO(s)+2SO2(g) A reaction mixture initially
contains 3.4...
asked 23 minutes ago -
Using traditional
methods, it takes 9.0 hours to receive a basic flying license. A
new license...
asked 26 minutes ago -
The EPA wants to test a randomly selected sample of n
n
water specimens and estimate...
asked 33 minutes ago -
A researcher performs a hypothesis test to test the claim that
for a particular manufacturer, the...
asked 35 minutes ago -
Prepare the adjusting entries, and post to the T-accounts.
a.
Office Supplies used during the month,...
asked 37 minutes ago -
G. Li, B. C. Ooi, J.
Feng, J. Wang, and L. Zhou. EASE: an effective 3-in-1...
asked 37 minutes ago -
The comparisons of Scholastic Aptitude Test (SAT) scores based
on the highest level of education attained...
asked 44 minutes ago -
A long solenoid has a diameter of 9.97 cm. When a current i
exists in its...
asked 51 minutes ago