Homework Answers
Requirement 1:
Operating income = $38,000
Calculations:
| Sales [$80,000 x 130%] | $ 104,000 |
| Variable costs [$104,000 x 25%] | $ 26,000 |
| Contribution margin | $ 78,000 |
| Fixed Costs | $ 40,000 |
| Operating Income | $ 38,000 |
Requirement 2:
Operating income = $33,750
Calculations:
| Sales [$50,000 x 130%] | $ 65,000 |
| Variable cost [$65,000 x 20%] | $ 16,250 |
| Contribution margin | $ 48,750 |
| Fixed cost | $ 15,000 |
| Operating income | $ 33,750 |
Requirement 3:
Company 1 profit will have a greater change.
Calculations:
| Company 1 | Company 2 | |
| Sales [$80,000 x 70%],[$50,000 x 70%] | $ 56,000 | $ 35,000 |
| Variable costs [$56,000 x 25%],[$35,000 x 20%] | $ 14,000 | $ 7,000 |
| Contribution margin | $ 42,000 | $ 28,000 |
| Fixed Costs | $ 40,000 | $ 15,000 |
| Operating Income | $ 2,000 | $ 13,000 |
Add Answer to:
Use the following information to answer the questions below. Company 1 Company 2 Sales $80,000 $50,000...
Hope to have a detailed explanation, thank you QUESTION 1 2 points Save Answer On June...
Hope to have a detailed explanation, thank you
QUESTION 1 2 points Save Answer On June 1, 2020. Palomo Corp paid $7,200 for a two-year insurance policy and correctly recorded the amount as Insurance Expense. The adjusting entry on December 31, 2020 is: debit Insurance Expense and credit Prepaid Insurance. $2.100. debit Prepaid Insurance and credit Insurance Expense. $2.100 debit Insurance Expense and credit Prepaid Insurance. $5.100. debit Prepaid Insurance and credit Insurance Expense. $5.100. QUESTION 2 2 points Save...
The following information is about a Company Month Sales Purchases Jan. 60,000 30,000 Feb. 80,000 40,000...
The following information is about a Company Month Sales Purchases Jan. 60,000 30,000 Feb. 80,000 40,000 Mar. 100,000 60,000 Cash is collected from customers in the following manner: Month of sale 45% Month following the sale 60% 40% of purchases are paid for in cash in the month of purchase, and the balance is paid in the following month. Labor costs are 30% of sales. Other operating costs are 38,000 per month including deprecation of 10,000. Both of these are...
Cambridge Roller Skates has three product lines-D, E, and F. The following information is available: Sales...
Cambridge Roller Skates has three product lines-D, E, and F. The following information is available: Sales revenue $70,000 $60,000 $30,000 Variable costs (40,000) (115.000) (10.000) Contribution margin $30,000 $45,000 $20,000 Fixed costs (15.000) (5.000) (23.000) Operating income (loss) $15,000 $40,000 $(3,000) The company is deciding whether to drop product line F because it has an operating loss. Assume that $21,000 of total fixed costs could be eliminated by O A. Operating income will decrease by $1,000 O B. Operating income...
Mission Company has three product lines: D, E, and F. The following information is available: Sales...
Mission Company has three product lines: D, E, and F. The following information is available: Sales revenue $85.000 $44,000 $20,000 Variable expenses $45,000 $21,000 $12,000 $40,000 $23,000 $8,000 $15.000 $12,000 $17,000 Fixed expenses $28,000 Operating income (105) $8,000 $(9.000) Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavoidable. Assume Mission Company is able to increase the sales revenue of product F to $35,000 with no change in volume...
QUESTION 103 For each of the following, determine the missing amounts. Sales Cost of Operating Revenue...
QUESTION 103 For each of the following, determine the missing amounts. Sales Cost of Operating Revenue Goods Sold Gross Profit Expenses 1. $100,000 $30,000 $135,000 $125,000 Net Income $12,000 $80,000 T T TT Paragraph. Arial %DO Q E $x Mashups - Tu © @£2 3 (12pt) T' T25 - E. - -- Path:p QUESTION 104 Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Exercise 19-03 Barnes Company reports the following operating results for the month of August: sales $315,000...
Exercise 19-03 Barnes Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $224,000; and fixed costs $71,900. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income 2. Reduce variable costs to 60% of sales. Net income 3. Reduce fixed costs...
Remalning Time: 2 hours, 33 minutes, 36 seconds. Question Completion Status: For the next 6 questions...
Remalning Time: 2 hours, 33 minutes, 36 seconds. Question Completion Status: For the next 6 questions suppose the following data: Balance Sheet 30,000 Accruals 70,000 Accounts Payable Cash & MS Receivables Inventories Fixed Assets Total Assets 120,000 Notes Payable 480,000L-T Liabilities 700,000 Common Equity 20,000 60,000 80,000 140,000 400,000 700,000 Total Annual Sales $1,400,000 Cost of Goods Sold $960,000 Net Income$63,000 Number of Shares Outstanding 30,000 What is the current ratio of the firm? ○ 1225 0 1.375 O 1.875...
Required Information The following information applies to the questions displayed below.) Oslo Company prepared the following...
Required Information The following information applies to the questions displayed below.) Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $80,000 52,000 28,000 21,840 $ 6,160 13. Using the degree of operating leverage, what is the estimated percent Increase in net operating Income of a 5% Increase in sales? (Round your...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($44 per unit) cout of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $880,000 $1,760,000 580,000 1,160,000 300,000 600,000 285,000 325,000 $ 15,000 $275,000 Additional Information a. Sales and production data for these first two years follow. Units produced 2018 30,000...
The city of Charleston had the following sales of water for the selected months of 2017:...
The city of Charleston had the following sales of water for the selected months of 2017: Month Sales February $60,000 March 45,000 April 65,000 May 43,350 June 110,000 July 120,000 All sales are on credit. Historically, 60 percent is collected in the month of sale, 30 percent during the first month following the sale, and 10 percent in the second month following the sale. Water purchases by month are as follows: Month February $45,000 March 45,000 April 40,000 May 59,750...
Hope to have a detailed explanation, thank you
QUESTION 1 2 points Save Answer On June 1, 2020. Palomo Corp paid $7,200 for a two-year insurance policy and correctly recorded the amount as Insurance Expense. The adjusting entry on December 31, 2020 is: debit Insurance Expense and credit Prepaid Insurance. $2.100. debit Prepaid Insurance and credit Insurance Expense. $2.100 debit Insurance Expense and credit Prepaid Insurance. $5.100. debit Prepaid Insurance and credit Insurance Expense. $5.100. QUESTION 2 2 points Save...
Cambridge Roller Skates has three product lines-D, E, and F. The following information is available: Sales revenue $70,000 $60,000 $30,000 Variable costs (40,000) (115.000) (10.000) Contribution margin $30,000 $45,000 $20,000 Fixed costs (15.000) (5.000) (23.000) Operating income (loss) $15,000 $40,000 $(3,000) The company is deciding whether to drop product line F because it has an operating loss. Assume that $21,000 of total fixed costs could be eliminated by O A. Operating income will decrease by $1,000 O B. Operating income...
Mission Company has three product lines: D, E, and F. The following information is available: Sales revenue $85.000 $44,000 $20,000 Variable expenses $45,000 $21,000 $12,000 $40,000 $23,000 $8,000 $15.000 $12,000 $17,000 Fixed expenses $28,000 Operating income (105) $8,000 $(9.000) Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavoidable. Assume Mission Company is able to increase the sales revenue of product F to $35,000 with no change in volume...
QUESTION 103 For each of the following, determine the missing amounts. Sales Cost of Operating Revenue Goods Sold Gross Profit Expenses 1. $100,000 $30,000 $135,000 $125,000 Net Income $12,000 $80,000 T T TT Paragraph. Arial %DO Q E $x Mashups - Tu © @£2 3 (12pt) T' T25 - E. - -- Path:p QUESTION 104 Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Exercise 19-03 Barnes Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $224,000; and fixed costs $71,900. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income 2. Reduce variable costs to 60% of sales. Net income 3. Reduce fixed costs...
Remalning Time: 2 hours, 33 minutes, 36 seconds. Question Completion Status: For the next 6 questions suppose the following data: Balance Sheet 30,000 Accruals 70,000 Accounts Payable Cash & MS Receivables Inventories Fixed Assets Total Assets 120,000 Notes Payable 480,000L-T Liabilities 700,000 Common Equity 20,000 60,000 80,000 140,000 400,000 700,000 Total Annual Sales $1,400,000 Cost of Goods Sold $960,000 Net Income$63,000 Number of Shares Outstanding 30,000 What is the current ratio of the firm? ○ 1225 0 1.375 O 1.875...
Required Information The following information applies to the questions displayed below.) Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $80,000 52,000 28,000 21,840 $ 6,160 13. Using the degree of operating leverage, what is the estimated percent Increase in net operating Income of a 5% Increase in sales? (Round your...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($44 per unit) cout of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $880,000 $1,760,000 580,000 1,160,000 300,000 600,000 285,000 325,000 $ 15,000 $275,000 Additional Information a. Sales and production data for these first two years follow. Units produced 2018 30,000...
Most questions answered within 3 hours.
-
A 13-year bond with a face value of 1500 dollars is redeemable
at twice par, and...
asked 10 minutes ago -
Topdog is a toy company, whose profits/sales percentage is 13%
in 2015, 16% in 2016 and...
asked 9 minutes ago -
A sag curve and crest curve connect a –3.5% tangent section of
highway (to the west)...
asked 7 minutes ago -
What is the Nernst (equilibrium) potential of a monovalent
cation (+ valence) at 37oC given the...
asked 17 minutes ago -
Ryan wants to accumulate at least $55,000 by depositing $1,800
at the end of every month...
asked 21 minutes ago -
Compressed air can be pumped underground into huge caverns as a
form of energy storage. The...
asked 28 minutes ago -
Scores on the first half of a 60-item
test are correlated with scores on the second...
asked 51 minutes ago -
Find the quantile function F^(-1)(p) (if one exists) of F(x) =
{0 for x<= 0, (1/9)x^2...
asked 52 minutes ago -
Why do practitioners continue to prefer unstructured and
intuition based approaches to employee selection?
asked 53 minutes ago -
1.
a.) What is the molar solublitlity of PbBr2 in pure water? Ksp
of PbBr2=4.67*10^-6
b.)...
asked 1 hour ago -
A NaCl crystal has a mass of 0.15mg. how many moles of
Na^+ are present in...
asked 1 hour ago -
What is the final volume in milliliters when 0.854 L of a 37.6 %
(m/v) solution...
asked 1 hour ago