Homework Answers
Answer A) Baird's income statement, assuming that it serves 172 customers when it lures 86 customers away from Adams by lowering lowering the sales price to $120 per customer :
| BAIRD COMPANY | |
| Income Statement | |
| Sales Revenue | $20,640 |
| Less: Variable Cost | ($0) |
| Contribution Margin | $20,640 |
| Less: Fixed Cost | ($15,050) |
| Net Income (loss) | $5,590 |
Explanation :
Number of Customers = 172 (Given)
Sales Price per customer = $120 (Given)
Sales Revenue = Sales Price per customer * Number of Customers
= $120 * 172
= $20,640
Variable Cost per customer = $175 (Given)
Variable Cost @$175 per customer in Baird's company is not applicable (Given)
Variable Cost per customer = $0 (Given)
Variable Cost = Number of Customers * Variable Cost per customer
= 172 * $0
= $0
Total Variable Cost = N/A + $0
= $0
Contribution Margin = Sales Revenue - Total Variable Cost
= $20,640 - $0
= $20,640
Fixed Cost = $15,050 (Given)
Net Income (loss) = Contribution Margin - Fixed Cost
= $20,640 - $15,050
= $5,590
Which means Net Income of $5,590
Answer B) Adams's income statement, assuming that it serves 172 customers when it lures 86 customers away from Baird by lowering the sales price to $120 per customer.
| ADAMS COMPANY | |
| Income Statement | |
| Sales Revenue | $20,640 |
| Less: Variable Cost | ($30,100) |
| Contribution Margin | ($9,460) |
| Less: Fixed Cost | $0 |
| Net Income (Loss) | ($9,460) |
Explanation :
Number of Customers = 172 (Given)
Sales Price per customer = $120 (Given)
Sales Revenue = Number of Customers * Sales Price per customer
= 172 * $120
= $20,640
Variable Cost per customer = $175 (Given)
Variable Cost = Number of Customers * Variable Cost per customer
= 172 * $175
= $30,100
Variable Cost per customer = $0 (Given)
Variable Cost @$0 per customer in Adams's company is not applicable (Given)
Total Variable Cost = $30,100 + N/A
= $30,100
Contribution Margin = Sales Revenue - Total Variable Cost
= $20,640 - $30,100
= -$9,460
Fixed Cost = $0 (Given)
Net Income (loss) = Contribution Margin - Fixed Cost
= -$9,460 - $0
= -$9,460
Which means Net Loss of $9,460
If you find this answer helpful, please give a thumbs up.
Add Answer to:
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 Rundle Perez Number of customers (a) 87 Sales revenue (a * $240) $ 20,880 $ 20,880 Variable cost (a * $185) N/A (16,095) Variable cost (a * $0) 0 N/A Contribution margin 20,880 4,785 Fixed cost (16,095) 0 Net income $ 4,785 $ 4,785 87 Required a. Reconstruct...
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...
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...
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...
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...
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 Campbell Company, a merchandising firm: CAMPBELL COM...
The following income statement was drawn from the records of Campbell Company, a merchandising firm: CAMPBELL COMPANY Income Statement For the Year Ended December 31, 2018 $1,072,500 (559,000) 513,500 (53,625) (84,000) (35,000) (48,000) Sales revenue (6,500 units x $165) Cost of goods sold (6,500 units x $86) Gross margin Sales commissions (58 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units x $2) (13,000) 279,875 Net income Required a. Reconstruct the income statement using...
Required information Problem 05-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4...
Required information Problem 05-5A 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 42,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes...
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 Rundle Perez Number of customers (a) 87 Sales revenue (a * $240) $ 20,880 $ 20,880 Variable cost (a * $185) N/A (16,095) Variable cost (a * $0) 0 N/A Contribution margin 20,880 4,785 Fixed cost (16,095) 0 Net income $ 4,785 $ 4,785 87 Required a. Reconstruct...
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...
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...
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...
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...
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 Campbell Company, a merchandising firm: CAMPBELL COMPANY Income Statement For the Year Ended December 31, 2018 $1,072,500 (559,000) 513,500 (53,625) (84,000) (35,000) (48,000) Sales revenue (6,500 units x $165) Cost of goods sold (6,500 units x $86) Gross margin Sales commissions (58 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units x $2) (13,000) 279,875 Net income Required a. Reconstruct the income statement using...
Required information Problem 05-5A 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 42,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes...
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...
Most questions answered within 3 hours.
-
Verify the MIRR is 9.29% given cash flows in years 1 and 2 of
$1,000 each,...
asked 14 seconds from now -
Calculate the pH of a 5.7 M solution of aniline (C6H5NH2; Kb =
3.8 x 10^-10)
asked 1 hour ago -
LSL R3, R3, R12
Memory
Address
Orig.
Data
Updated
Data
Register
Orig.
Data
Updated
Data
0x84F0...
asked 2 hours ago -
Air at 100 kPa and density of 1.2 kg/m3 flows upward through a
5-cm diameter inclined...
asked 2 hours ago -
Define the following concepts in your own words: (a) stiffness,
(b) strength, (c) strain,
(d) ductility,...
asked 3 hours ago -
In C++
In this homework, you will be tasked with creating functions to
manipulate strings that...
asked 3 hours ago -
An isolated colony represents a pure culture. one rare occasions
, however , a colony can...
asked 3 hours ago -
*****DO NOT ANSWER THIS QUESTION IF YOU DON'T
KNOW*******Rights and Duties of Auditors; Minimum 4000
words...
asked 4 hours ago -
The probability that Janie is wearing sunglasses is 1/4. The
probability that she is wearing sunglasses...
asked 5 hours ago -
Do you believe social media is more of a help or a hindrance in
controlling crises...
asked 5 hours ago -
Two long, parallel wires separated by 2.85 cm carry currents in
opposite directions. The current in...
asked 5 hours ago -
Question # 1. Develop a list of rehabilitation journals
that publish articles concerning career counseling for...
asked 5 hours ago