Working Note:- Carla Vista | |||
Existing | Alternative -1 | Alternative-2 | |
Sales | $2,927,500 | $3,513,000 | $2,927,500 |
Less: Variabel cost | $2,107,800 | $2,107,800 | $2,224,900 |
(2107800+2927500*4%) | |||
Contribution | $819,700 | $1,405,200 | $702,600 |
Less: Fixed Expense | $928,200 | $928,200 | $822,810 |
(928200-175650+70260) | |||
Net Income | -$108,500 | $477,000 | -$120,210 |
CM Ratio( Contribution/sales) | 28.00% | 40.00% | 24.00% |
Part-1 |
BEP= Fixed Expense/ Conribution Margin |
=928200/28%=3315000 |
Part-2 |
CM Ratio for Alternative -1: 40% |
CM Ratio for Alternative -2: 24% |
Part-3 |
BEP for Alternative-1 :- 928200/40%=$2320500 |
BEP for Alternative-2 :- 928200/24%=$3867500 |
Part-4 : |
Alternative-1 |
CALORLATOK BACK Problem 18-04A Carla Vista Corp.'s sales slumped badly in 2020. For the first time...
Problem 18-04A Crane Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 585,500 units of product: sales $2,927,500, total costs and expenses $3,024,875, and net loss $97,375. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,486,215 $2,008,265 $477,950 Selling expenses 292,750 107,732185,018 Administrative expenses 245,910 79,628 166,282 $3,024,875 $2,195,625 $829,250 Management is considering...
Problem 18-4A a-b (Part Level Submission) (Video) Carla Vista Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 585,500 units of product: sales $2,927,500, total costs and expenses $3,036,000, and net loss $108,500. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,497,340 292,750 245,910 $3,036,000 Variable $1,920,440 107,732 79,628 $2,107,800 Fixed...
Break even point for
alternative 1 is?
Break even point for alternative two is?
Problem 18-4A a-b (Part Level Submission) (Video) Carla Vista Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 585,500 units of product: sales $2,927,500, total costs and expenses $3,036,000, and net loss $108,500. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling...
Problem 11-3
Pina Colada Corp.’s sales slumped badly in 2017. For the first
time in its history, it operated at a loss. The company’s income
statement showed the following results from selling 585,500 units
of product: sales $2,927,500, total costs and expenses $3,044,600,
and net loss $117,100. Costs and expenses consisted of the amounts
shown below.
Total
Variable
Fixed
Cost of goods sold
$2,505,940
$1,861,890
$644,050
Selling expenses
292,750
107,732
185,018
Administrative expenses
245,910
79,628
166,282
$3,044,600
$2,049,250
$995,350
Management...
Problem 18-04A Crane Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 590,500 units of product: sales $2,952,500, total costs and expenses $3,050,875, and net loss $98,375. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,507,615 295,250 248,010 $3,050,875 Variable $2,025,415 108,652 80,308 $2,214,375 Fixed $482,200 186,598 167,702 $836,500 Management is...
Problem 18-04A Oriole Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 540,500 units of product: sales $2,702,500, total costs and expenses $2,803,440, and net loss $100,940. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,306,180 270,250 227,010 $2,803,440 Variable $1,772,840 99,452 73,508 Fixed $533,340 170,798 153,502 $857,640 $1,945,800 Management is...
Oriole Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 555,500 units of product: sales $2,777,500, total costs and expenses $2,869,875, and net loss $92,375. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,358,815 277,750 233,310 $2,869,875 Variable $1,905,365 102,212 75,548 $2,083,125 Fixed $453,450 175,538 157,762 $786,750 Management is considering the...
Crane Corp.’s sales slumped badly in 2020. For the first time
in its history, it operated at a loss. The company’s income
statement showed the following results from selling 590,500 units
of product: sales $2,952,500, total costs and expenses $3,050,875,
and net loss $98,375. Costs and expenses consisted of the amounts
shown below.
Total
Variable
Fixed
Cost of goods sold
$2,507,615
$2,025,415
$482,200
Selling expenses
295,250
108,652
186,598
Administrative expenses
248,010
80,308
167,702
$3,050,875
$2,214,375
$836,500
Management is considering the...
Problem 5-4A (Video) Crane Corps sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 505,500 units of product: sales $2,527,500, total costs and expenses $2.622.000, and net loss 594,500. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,156,940 252,750 212,310 $2,622,000 Variable $1,658,040 93,012 68,748 $1,819,800 Fixed $498,900 159,738 143,562 $802,200 Management...
Ivanhoe Corp's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 515,500 units of product: sales $2,577,500, total costs and expenses$2,673,960, and net loss $96,460. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,199,700 $1,690,840 $508,860 257,750 94,852 162,898 Administrative expenses 216,510 70,108 146,402 2,673,960 $1,855,800 $818,160 Selling expenses Management is considering the following...