Homework Answers
Notes:
Variable cost per unit is same regardless of changes in number of sales units. In the above case , variable cost per unit of benson company is nil and variable cost per unit of baird company is $175 per unit. Total variable cost changes with change in n.o of sales.
Total fixed cost doesnt change with change in n.o of sales.
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 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 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 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: 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 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...
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...
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...
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal....
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a profit. When a company decides that it wants to earn more than the break-even point of income, it must define the amount it thinks it will realistically make. By modifying the break-even equation, the sales required to earn a target or desired amount of profit may be computed. Complete the following: If a company...
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 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 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: 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 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...
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...
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...
Most questions answered within 3 hours.
-
Assume ABC Company has asked you to not only prepare their 2017
year-end Balance Sheet but...
asked 4 minutes ago -
Explain in detail (not just enumerate) each of Koch’s
postulates to determine the etiology of a...
asked 6 minutes ago -
You have just had a new set of tires put on your car, and now
the...
asked 9 minutes ago -
Please answer ASAP 2) Choose a point at random from the unit
square [0, 1] ×...
asked 24 minutes ago -
Draw the Lewis structures and determine which of these
molecules has a central atom that unavoidably...
asked 24 minutes ago -
Do we typically carry antibodies against the RH antigen in our
blood plasma?
asked 27 minutes ago -
What are the differences between an antibiotic, a semisynthetic,
and a synthetic as types of antimicrobials?
asked 23 minutes ago -
One mole of oxygen gas is at a pressure of 5.90 atm and a
temperature of...
asked 30 minutes ago -
The primary side of a transformer has 935 turns and is connected
to 118 Volts A/C....
asked 29 minutes ago -
This must be done in Java and it must contain a public static
void (string []args)...
asked 32 minutes ago -
An economy has a Cobb–Douglas production function:
Y=Kα(LE)1−αY=Kα(LE)1−α
The economy has a capital share of 0.30,...
asked 47 minutes ago -
60.0 mL of a silver chlorate solution with a concentration of
0.654 M is mixed with...
asked 52 minutes ago