Homework Answers
RUNDLE company reconstructed income statement
| Income statement | |
| Sales revenue =174*$140 | $24360 |
| Less variable cost | $0 |
| Contribution margin | $24360 |
| Less :fixed cost | $16095 |
| Net income | $8265 |
PEREZ company reconstructed income statement
| Income statement | |
| Sales revenue =174 *$140 | $24360 |
| Less :Variable cost=174*$185 | $32190 |
| Contribution margin | -$7830 |
| Less :fixed cost | 0 |
| Net loss | -$7830 |
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The following income statements show equal net income even though quite different cost structures exist for...
The following income statements show equal net income even though quite different cost structures exist for...
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Benson Baird Number of customers (a) 88 88 Sales revenue (a * $210) $ 18,480 $ 18,480 Variable coat (a * $175) N/A (15,400) Variable cont (a $0) 0 N/A Contribution margin 18,480 3,080 Fixed cost (15,400) 0 Net income $ 3,080 $ 3,080 Required a. Reconstruct Benson's...
The following income statements show equal net income even though quite different cost structures exist for...
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Baird Adams Number of customers (a) (a 86 86 Sales revenue (a x $220) $ 18,920 $ 18,920 Variable cost (a * $175) N/A (15,050) Variable cost (a * $0) 0 N/A Contribution margin 18,920 3,870 Fixed cost (15,050) 0 Net income $ 3,870 $ 3,870 Required a....
The following income statements illustrate different cost structures for two competing companies: 85 Income Statements Company...
The following income statements illustrate different cost structures for two competing companies: 85 Income Statements Company Name Solomon Rooney Number of customers (a) Sales revenue (a $220) $ 18,700 $ 18,700 Variable cost (a * $175) N/A (14.875) Variable cost ( 50) Contribution margin 18,700 3.825 Fixed cost (14,875) Net Income $ 3,825 $ 3.825 N/A Required a. Reconstruct Solomon's income statement, assuming that it serves 170 customers when it lures 85 customers away from Rooney by lowering the sales...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Zachary Walton Number of customers (a) 83 83 Sales revenue (ax $210) $ 17,430 $17.430 Variable cost (a X $180) N/A (14,940) Variable cost (a x $0) N/A Contribution margin 17.430 2,490 Fixed cost (14,940) Net Income $ 2,490 $ 2.490 Required a. Reconstruct Zachary's income statement, assuming that it serves 166 customers when it lures 83 customers away from Walton by lowering the...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Stuart Solomon Number of customers (a) 82 82 Sales revenue (a * $220) $ 18,040 $ 18,040 Variable cost (a * $185) N/A (15,170) Variable cost (a * $0) 0 N/A Contribution margin 18,040 2,870 Fixed cost (15,170) 0 Net income $ 2,870 $ 2,870 Required a. Reconstruct Stuart's income statement, assuming that it serves 164 customers when it lures 82 customers away from...
86 Number of customers (a) Sales revenue (a x $200) Variable cost (a x $185) Variable...
86 Number of customers (a) Sales revenue (a x $200) Variable cost (a x $185) Variable cost (a * $0) Contribution margin Fixed cost Net income Company Name Franklin Finch 86 $ 17,200 $ 17,200 N/A (15,910) 0 N/A 1,290 (15,910) $ 1,290 $ 1,290 DA 17,200 Required a. Reconstruct Franklin's income statement, assuming that it serves 172 customers when it lures 86 customers away from Finch by lowering the sales price to $100 per customer. . Reconstruct Finch's income...
Company Name Franklin Finch Number of customers (a) Sales revenue (a x $200) Variable cost (a...
Company Name Franklin Finch Number of customers (a) Sales revenue (a x $200) Variable cost (a x $185) Variable cost (a x $0) Contribution margin 86 86 $ 17,200 $ 17,200 N/A (15,910) N/A 17,200 (15,910) 1,290 Fixed cost 2$ 1,290 1,290 Net income Required a. Reconstruct Franklin's income statement, assuming that it serves 172 customers when it lures 86 customers away from Finch by lowering the sales price to $100 per customer. ɔ. Reconstruct Finch's income statement, assuming that...
The following income statement was drawn from the records of Rundle Company, a merchandising firm: RUNDLE...
The following income statement was drawn from the records of Rundle Company, a merchandising firm: RUNDLE COMPANY Incone Statement Sales revenue (4,500 units $169) cost of goods sold (4,500 units x $84) Gross margin Sales commissions (58 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (4,500 units $2) $ 760,500 (378,000) 382,500 (38,025) (89,000) (31,000) (46,000) (9,000) s 169,475 Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of...
The following income statement was drawn from the records of Perez Company, a merchandising firm: PEREZ...
The following income statement was drawn from the records of Perez Company, a merchandising firm: PEREZ COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (5,500 units x $166) Cost of goods sold (5,500 units X $82) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (5,500 units X $2) Net income $ 913,000 (451, 000) 462,000 (45,650) (84,000) (33,000) (46,000) (11,000) $ 242, 350 Required a....
Problem 21-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 [The following...
Problem 21-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 [The following information applies to the questions displayed below. Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 49,000 units of each product. Sales and costs for each product follow Product TProduct o Sales Variable costs Contribution margin Fixed costs Income before...
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Benson Baird Number of customers (a) 88 88 Sales revenue (a * $210) $ 18,480 $ 18,480 Variable coat (a * $175) N/A (15,400) Variable cont (a $0) 0 N/A Contribution margin 18,480 3,080 Fixed cost (15,400) 0 Net income $ 3,080 $ 3,080 Required a. Reconstruct Benson's...
The following income statements show equal net income even though quite different cost structures exist for the two companies: Note: "N/A" means not applicable to that particular company. Income Statements Company Name Baird Adams Number of customers (a) (a 86 86 Sales revenue (a x $220) $ 18,920 $ 18,920 Variable cost (a * $175) N/A (15,050) Variable cost (a * $0) 0 N/A Contribution margin 18,920 3,870 Fixed cost (15,050) 0 Net income $ 3,870 $ 3,870 Required a....
The following income statements illustrate different cost structures for two competing companies: 85 Income Statements Company Name Solomon Rooney Number of customers (a) Sales revenue (a $220) $ 18,700 $ 18,700 Variable cost (a * $175) N/A (14.875) Variable cost ( 50) Contribution margin 18,700 3.825 Fixed cost (14,875) Net Income $ 3,825 $ 3.825 N/A Required a. Reconstruct Solomon's income statement, assuming that it serves 170 customers when it lures 85 customers away from Rooney by lowering the sales...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Zachary Walton Number of customers (a) 83 83 Sales revenue (ax $210) $ 17,430 $17.430 Variable cost (a X $180) N/A (14,940) Variable cost (a x $0) N/A Contribution margin 17.430 2,490 Fixed cost (14,940) Net Income $ 2,490 $ 2.490 Required a. Reconstruct Zachary's income statement, assuming that it serves 166 customers when it lures 83 customers away from Walton by lowering the...
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Stuart Solomon Number of customers (a) 82 82 Sales revenue (a * $220) $ 18,040 $ 18,040 Variable cost (a * $185) N/A (15,170) Variable cost (a * $0) 0 N/A Contribution margin 18,040 2,870 Fixed cost (15,170) 0 Net income $ 2,870 $ 2,870 Required a. Reconstruct Stuart's income statement, assuming that it serves 164 customers when it lures 82 customers away from...
86 Number of customers (a) Sales revenue (a x $200) Variable cost (a x $185) Variable cost (a * $0) Contribution margin Fixed cost Net income Company Name Franklin Finch 86 $ 17,200 $ 17,200 N/A (15,910) 0 N/A 1,290 (15,910) $ 1,290 $ 1,290 DA 17,200 Required a. Reconstruct Franklin's income statement, assuming that it serves 172 customers when it lures 86 customers away from Finch by lowering the sales price to $100 per customer. . Reconstruct Finch's income...
Company Name Franklin Finch Number of customers (a) Sales revenue (a x $200) Variable cost (a x $185) Variable cost (a x $0) Contribution margin 86 86 $ 17,200 $ 17,200 N/A (15,910) N/A 17,200 (15,910) 1,290 Fixed cost 2$ 1,290 1,290 Net income Required a. Reconstruct Franklin's income statement, assuming that it serves 172 customers when it lures 86 customers away from Finch by lowering the sales price to $100 per customer. ɔ. Reconstruct Finch's income statement, assuming that...
The following income statement was drawn from the records of Rundle Company, a merchandising firm: RUNDLE COMPANY Incone Statement Sales revenue (4,500 units $169) cost of goods sold (4,500 units x $84) Gross margin Sales commissions (58 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (4,500 units $2) $ 760,500 (378,000) 382,500 (38,025) (89,000) (31,000) (46,000) (9,000) s 169,475 Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of...
The following income statement was drawn from the records of Perez Company, a merchandising firm: PEREZ COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (5,500 units x $166) Cost of goods sold (5,500 units X $82) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (5,500 units X $2) Net income $ 913,000 (451, 000) 462,000 (45,650) (84,000) (33,000) (46,000) (11,000) $ 242, 350 Required a....
Problem 21-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 [The following information applies to the questions displayed below. Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 49,000 units of each product. Sales and costs for each product follow Product TProduct o Sales Variable costs Contribution margin Fixed costs Income before...
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