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Item 17
Item 17
Time Remaining 55 minutes 7 seconds
00:55:07
Tulsa Company, (a merchandising Co.) has the following data
pertaining to the year ended December 31, 2019: (CPA adapted)
Purchases | $ | 620,000 | |
Beginning inventory | 204,000 | ||
Ending inventory | 227,000 | ||
Freight-in | 67,000 | ||
Freight-out | 83,500 | ||
What is the cost of goods sold for the year?
2. Luxus, Inc. employs 42 sales personnel to market its line of luxury automobiles. The average car sells for $28,000, and a 6 percent commission is paid to the salesperson. Luxus, Inc. is considering a change to the commission arrangement where the company would pay each salesperson a salary of $2,700 per month plus a commission of 2% of the sales made by that salesperson. The amount of total monthly car sales at which Luxus, Inc. would be indifferent as to which plan to select is:
3. Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $12.60 each, and the variable cost to manufacture them was $7.60 per unit. The company needed to sell 23,400 shirts to break-even. The after tax net income last year was $6,060. Donnelly's expectations for the coming year include the following: (CMA adapted)
Sales for the coming year are expected to exceed last year's by
1,170 units. If this occurs, Dorcan's sales volume in the coming
year will be:
Ans 1. | ||
Tulsa Company | ||
a | Beginning Inventory | 204,000 |
b | Add : Purchase | 620,000 |
c | Add: Freight In | 67,000 |
d | Less : Ending Inventory | 227,000 |
Cost of Goods Sold for the Year =a+b+c-d= | 664,000 |
Ans 2. | |
Assume Indifferent car sales per month =x | |
Monthly Sales Commission in existing system =x*28000*6% | |
Monthly sales commission by proposed system | |
=42*2700+x*28000*2% | |
At Point of indifference both commission will be same. | |
So , x*28000*6%=42*2700+x*28000*2% | |
x*1680=113400+560*x | |
x=101.25 | |
So Indifferent no of Cars sales /month=101.25=101 rounded |
Ans 3. | |||
Finding Fixed Operating cost /year | |||
a | Unit sales Price | $ 12.60 | |
b | Less Unit Variable cost | $ 7.60 | |
c | Unit Contribution Margin | $ 5.00 | |
d | BEP no of T Shirts = | $ 23,400.00 | |
e | annual Fixed cost=c*d= | $ 117,000.00 | |
Let us Find Last Year Sales Volume | |||
f | After Tax Net Income | $ 6,060.00 | |
g | Tax Rate = | 40% | |
h | EBT =f/60%= | $ 10,100.00 | |
i | Annual Fixed cost | $ 117,000.00 | |
j | Annual Contribution Margin =h+i= | $ 127,100.00 | |
c | Unit Contribution Margin | $ 5.00 | |
l | Units sold last year =j/c= | 25,420.00 | units |
m | Coming year sale will exceed last yr sale by | 1,170.00 | units |
n | Coming Year sales Volume =l+m= | 26,590.00 | units |
Time Remaining 55 minutes 7 seconds 00:55:07 Item 17 Item 17 Time Remaining 55 minutes 7...
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,000 shirts to break-even. The after tax net income last year was $5,040. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $10. Variable cost to manufacture will increase by one-third. Fixed costs will...
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $8.00 each, and the variable cost to manufacture them was $3.75 per unit. The company needed to sell 20,000 shirts to break-even. The after tax net income last year was $6,180. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $10. Variable cost to manufacture will increase by one-third. Fixed costs will...
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,000 shirts to break-even. The after tax net income last year was $5,040. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $9 Variable cost to manufacture will increase by one-third. Fixed costs will...
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.66 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 21,600 shirts to break-even. The after tax net income last year was $5,520. Donnelly's expectations for the coming year include the following: (CMA adapted) . The sales price of the T-shirts will be $10. • Variable cost to manufacture will increase by one-third. •...
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $9.00 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 21,000 shirts to break-even. The after tax net income last year was $5,340. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $14. Variable cost to manufacture will increase by one-third. Fixed costs will...
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ACCOUNTING hapter 3 Qulz instructions t help K Revew Question 3 (o25) Score This Question Save & Ext Su 3. Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans Last year, the shirts sold for $7.50 each, and the variable cost so menufacture th s $2 25 per unit The company needed to sell 20000 shirts to break-ever. The after tax net income last year was $5,040 Donnelys expectations for the coming yew nclide the fol wrs...
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