Sales (240,000 units) $1,200,000 Cost of goods sold 768,000 Gross profit 432,000 Operating expenses Selling $280,000...
Sales (240,000 units) $1,200,000
Cost of goods sold 768,000
Gross profit 432,000
Operating expenses
Selling $280,000
Administrative 156,000
436,000
Net loss$ (4,000)
A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.
Crane has proposed a plan to get the partnership “out of the red” and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Crane estimates that sales volume will increase by 25%. Compute the net income under Crane's proposal and the break-even point in dollars.How to calculate net income & break-even point?
Homework Answers
Add Answer to:
Sales (240,000 units) $1,200,000
Cost of goods sold 768,000
Gross profit 432,000
Operating expenses
Selling $280,000...
The condensed income statement for the Crane and Paul partnership for 2020 is as follows.
Sales (240,000 units)$1,200,000Cost of goods sold768,000Gross profit432,000Operating expensesSelling$280,000Administrative156,000436,000Net loss$(4,000)A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.Crane has proposed a plan to get the partnership “out of the red” and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.25 more per unit on better raw materials. The selling price per...
The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Sales...
The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Sales (240,000 units) $1,200,000 Cost of goods sold 800,000 Gross profit 400,000 Operating expenses Selling $280,000 Administrative 156,000 436,000 Net loss $(36,000 ) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. 1) Compute the break-even point in total sales dollars for 2020. 2)...
Expand Your Critical Thinking 18-02 The condensed income statement for the Oriole and Paul partnership for...
Expand Your Critical Thinking 18-02 The condensed income statement for the Oriole and Paul partnership for 2020 is as follows. Oriole and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (240,000 units) $1,200,000 Cost of goods sold 768,000 Gross profit 432,000 Operating expenses Selling $280,000 Administrative 156,000 436,000 Net loss $(4,000) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of...
PHAN AND NGUYEN LLP Income Statement Year Ending December 31, 2020 Sales (240,000 units) Cost of...
PHAN AND NGUYEN LLP Income Statement Year Ending December 31, 2020 Sales (240,000 units) Cost of goods sold Gross profit Operating expenses Selling $280,000 Administrative 150,000 Net loss $1,200,000 800,000 400,000 430,000 $ (30,000) A cost behaviour analysis indicates that 75% of the cost of goods sold is variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. Required: (Round to nearest unit, dollar, and percentage, where necessary. Use the CVP income statement format...
Phan has proposed a plan to get the partnership "out of the red" and improve its...
Phan has proposed a plan to get the partnership "out
of the red" and improve its profitability. she feels that the
quality of the product could be substantially improved by spending
$0.25 more per unit on better raw materials. the selling price per
unit could be increased to only $5.25 because of competitive
pressures. Phan estimates that sales volume will increase by 25%.
What effect would phans plan have on the partnerships profits and
its break-even point in dollars?
PHAN...
Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Total Company...
Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Total Company $ 840,000 557,200 282,800 264,000 $ 18,800 Commercial Residential $ 280,000 $ 560,000 154,000 403, 200 126,000 156,800 116,000 148,000 $ 10,000 $ 8,800 In preparing these statements, the intern determined that Toxaway's only variable selling and administrative expense is a 10% sales commission on all sales. The company's total fixed expenses include $78,000 of common fixed expenses that would continue to be incurred...
Cullumber and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (270,000 units)...
Cullumber and Paul Company
Income Statement
For the Year Ended December 31, 2020
Sales (270,000 units)
$1,350,000
Cost of goods sold
900,000
Gross profit
450,000
Operating expenses
Selling
$315,000
Administrative
175,500
490,500
Net loss
$(40,500
)
A cost behavior analysis indicates that 75% of the cost of goods
sold are variable, 42% of the selling expenses are variable, and
40% of the administrative expenses are variable.
Cullumber has proposed a plan to get the partnership “out of the
red” and...
DIJUMI Turny Income Statement For the Year Ended December 31, 2020 Sales (250,000 units) $1,250,000 Cost...
DIJUMI Turny Income Statement For the Year Ended December 31, 2020 Sales (250,000 units) $1,250,000 Cost of goods sold 900,000 Gross profit 350,000 Operating expenses Selling $250,000 Administrative 112,500 362,500 Net loss $(12,500) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. x Your answer is incorrect. Try again. Compute the break-even point in total sales dollars for 2020....
Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) Year...
Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) Year 1 $1,000,000 740,000 260,000 230,000 $ 30,000 Year 2 $ 780,000 520,000 260,000 200,000 $ 60,000 Year 3 $1,000,000 785,000 215,000 230,000 $ (15,000) In the latter part of Year 2, a competitor went out of business and in the process dumped a large number of units on the market. result, Starfax's sales dropped by 20% during Year 2 even though production increased during...
In 2016, Crane Company sold 3000 units at $500 each. Variable expenses were $380 per unit,...
In 2016, Crane Company sold 3000 units at $500 each. Variable expenses were $380 per unit, and fixed expenses were $780000. The same variable expenses per unit and fixed expenses are expected for 2017. If Crane cuts selling price by 4%, what is Crane's break-even point in units for 2017? 7500. 7800. 6771. 6500.
Expand Your Critical Thinking 18-02 The condensed income statement for the Oriole and Paul partnership for 2020 is as follows. Oriole and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (240,000 units) $1,200,000 Cost of goods sold 768,000 Gross profit 432,000 Operating expenses Selling $280,000 Administrative 156,000 436,000 Net loss $(4,000) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of...
PHAN AND NGUYEN LLP Income Statement Year Ending December 31, 2020 Sales (240,000 units) Cost of goods sold Gross profit Operating expenses Selling $280,000 Administrative 150,000 Net loss $1,200,000 800,000 400,000 430,000 $ (30,000) A cost behaviour analysis indicates that 75% of the cost of goods sold is variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. Required: (Round to nearest unit, dollar, and percentage, where necessary. Use the CVP income statement format...
Phan has proposed a plan to get the partnership "out
of the red" and improve its profitability. she feels that the
quality of the product could be substantially improved by spending
$0.25 more per unit on better raw materials. the selling price per
unit could be increased to only $5.25 because of competitive
pressures. Phan estimates that sales volume will increase by 25%.
What effect would phans plan have on the partnerships profits and
its break-even point in dollars?
PHAN...
Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Total Company $ 840,000 557,200 282,800 264,000 $ 18,800 Commercial Residential $ 280,000 $ 560,000 154,000 403, 200 126,000 156,800 116,000 148,000 $ 10,000 $ 8,800 In preparing these statements, the intern determined that Toxaway's only variable selling and administrative expense is a 10% sales commission on all sales. The company's total fixed expenses include $78,000 of common fixed expenses that would continue to be incurred...
Cullumber and Paul Company
Income Statement
For the Year Ended December 31, 2020
Sales (270,000 units)
$1,350,000
Cost of goods sold
900,000
Gross profit
450,000
Operating expenses
Selling
$315,000
Administrative
175,500
490,500
Net loss
$(40,500
)
A cost behavior analysis indicates that 75% of the cost of goods
sold are variable, 42% of the selling expenses are variable, and
40% of the administrative expenses are variable.
Cullumber has proposed a plan to get the partnership “out of the
red” and...
DIJUMI Turny Income Statement For the Year Ended December 31, 2020 Sales (250,000 units) $1,250,000 Cost of goods sold 900,000 Gross profit 350,000 Operating expenses Selling $250,000 Administrative 112,500 362,500 Net loss $(12,500) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. x Your answer is incorrect. Try again. Compute the break-even point in total sales dollars for 2020....
Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) Year 1 $1,000,000 740,000 260,000 230,000 $ 30,000 Year 2 $ 780,000 520,000 260,000 200,000 $ 60,000 Year 3 $1,000,000 785,000 215,000 230,000 $ (15,000) In the latter part of Year 2, a competitor went out of business and in the process dumped a large number of units on the market. result, Starfax's sales dropped by 20% during Year 2 even though production increased during...
In 2016, Crane Company sold 3000 units at $500 each. Variable expenses were $380 per unit, and fixed expenses were $780000. The same variable expenses per unit and fixed expenses are expected for 2017. If Crane cuts selling price by 4%, what is Crane's break-even point in units for 2017? 7500. 7800. 6771. 6500.
Most questions answered within 3 hours.
-
To calculate the adjusted present value, one will:
divide the project's cash flow by the risk-adjusted...
asked 16 seconds from now -
All in C please~
#1 Consider this program:
#include <stdio.h>
int main () { /* main...
asked 22 minutes ago -
How is Lasik Method useful to measure the respiration rate of
plants?
asked 21 minutes ago -
A laser emits a cylindrical beam of light 2.6 mm in diameter. If
the average power...
asked 15 minutes ago -
Questions:
How do we experience pain?
3 ways how pain affect quality of life?
The best...
asked 18 minutes ago -
If GDP is currently $300 and the growth rate is 5 percent, how
many years will...
asked 22 minutes ago -
The number of claims for lost luggage in a small city airport
averages 8 per day....
asked 59 minutes ago -
I need this code in java.
Loops do just what they sound like they should -...
asked 38 minutes ago -
if the plasmid concentration is 100 ng/ul how much ul need to be
added to the...
asked 41 minutes ago -
Your company wants to raise $11.0 million by issuing 30-year
zero-coupon bonds. If the yield to...
asked 1 hour ago -
Determine the pressure exerted by 3.99 mol of gas in a 2.92-L
container at 32oC
asked 41 minutes ago -
Riverbed Corp purchased a new blending machine for $3,050.01. It
paid $520.22 down and financed the...
asked 51 minutes ago