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The following "GAAP-based" income statement is provided for Vargas, Inc. Sales revenue (3,100 units * $20.60...
Saved The following income statement is provided for Vargas, Inc. Sales revenue (3,100 units * $20.60...
Saved The following income statement is provided for Vargas, Inc. Sales revenue (3,100 units * $20.60 per unit) Cost of goods sold (variable; 3,100 units * $10.60 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (3,100 units x $2.60 per unit) Net income $ 63,860 (32,860) (4,600) 26,400 (6,600) (5,600) (8,060) $ 6,140 What is this company's magnitude of operating leverage?
The following Income statement is provided for Vargas, Inc. Sales revenue (2,800 units * $20.30 per...
The following Income statement is provided for Vargas, Inc. Sales revenue (2,800 units * $20.30 per unit) Cost of goods sold (variable; 2,800 units * $10.30 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,800 units * $2.30 per unit) Net income $ 56,840 (28,840) (4,300) 23,700 (6,300) (5,300) (6,440) $ 5,660 What is this company's magnitude of operating leverage? (Round your answer to 2 decimal places.) Multiple Choice 0.24 419 0.25
Problem IV Assessing the magnitude of operating lever The following income statement is provided for Vargas,...
Problem IV Assessing the magnitude of operating lever The following income statement is provided for Vargas, Inc. 10 points Sales revenue (2.500 units x 560 per unit) Cost of goods sold (variable: 2.500 units x 520 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,500 units x 54 per unit) Net income $ 150.000 (50,000) (8,000 ) 92,000 (42,000) (10,000) (10.000 S 30.000 a) What is this company's magnitude of operating leveraget b) Use the...
The following income statement is provided for Awesomeness Company for the current year: $ Sales revenue...
The following income statement is provided for Awesomeness Company for the current year: $ Sales revenue (3,000 units x $42 per unit) Cost of goods sold (variable; 3,000 units $15 per unit) 126,000 (45,000) Cost of goods sold (fixed) (9,000) Gross margin 72,000 Administrative salaries Depreciation (11,000) (9,000) (15,000) Supplies (3,000 units x $5 per unit) Net income $ 37,000 What amount was the company's contribution margin? A. $66,000 B. $81,000 C.$37,000 D. $48,000
Presented below is the income statement of Goodwin Inc. The income statement is based on sales...
Presented below is the income statement of Goodwin Inc. The
income statement is based on sales of 100,000 units at $20 per
unit.
Goodwin estimates that 80% of Cost of Goods Sold is variable
costs, and 80% of Operating expenses is fixed costs.
9.Refer to the previous question. What is the amount of the
increase or decrease in net income?
10.Assume Goodwin reduces the selling price by 10%. How many
units would Goodwin have to sell to earn the same...
Presented below is the income statement of Total Inc. The income statement is based on sales of 100,000 units at $20 per...
Presented below is the income statement of Total Inc. The income statement is based on sales of 100,000 units at $20 per unit. Total estimates that 80% of cost of goods sold is variable, and 80% of operating expenses is fixed. Sales $2,000,000 Less: COGS $600,000 Gross Margin $1,400,000 Less: Operating expenses $500,000 Net income $900,000 Total is considering lowering the sales price in order to increase sales. Management believes that if it reduces the selling price by 10%, then...
Presented below is the income statement of Goodwin Inc. The income statement is based on sales...
Presented below is the income statement of Goodwin Inc. The income statement is based on sales of 100,000 units at $20 per unit. Goodwin estimates that 80% of Cost of Goods Sold is variable costs, and 80% of Operating expenses is fixed costs. Sales $2,000,000 Less: Cost of goods sold 600,000 Gross margin $1,400,000 Less: Operating expenses 500,000 Net income $ 900,000 Goodwin is considering lowering the sales price in order to increase sales. Management believes that if it reduces...
Presented below is the income statement of Goodwin Inc. The income statement is based on sales...
Presented below is the income statement of Goodwin Inc. The
income statement is based on sales of 100,000 units at $20 per
unit.
Goodwin estimates that 80% of Cost of Goods Sold is variable
costs, and 80% of Operating expenses is fixed costs.
Goodwin is considering lowering the sales price in order to
increase sales. Management believes that if it reduces the selling
price by 10%, then sales (in units) will increase 10%.
8.If Goodwin reduces the selling price by...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
465,000
Beginning merchandise inventory
$
31,000
Purchases
$
310,000
Ending merchandise inventory
$
15,500
Fixed selling expense
$
?
Fixed administrative expense
$
18,600
Variable selling expense
$
23,250
Variable administrative expense
$
?
Contribution margin
$
93,000
Net operating income
$
27,900
Prepare a contribution format income statement.
Prepare a traditional format income statement.
Calculate the selling price per unit, the variable...
Iris Manufacturing Inc. has provided you with the following CVP income statement: Sales (5,500 units) $1,100,000...
Iris Manufacturing Inc. has provided you with the following CVP income statement: Sales (5,500 units) $1,100,000 $200 per unit Variable costs 693,000 126 per unit Contribution margin 407,000 $74 per unit Fixed costs 339,660 Operating income $67,340 Management is considering the following course of action to increase operating income: reduce the selling price by 10%, with no changes to unit variable costs or fixed costs. Management feels that this change will increase unit sales by 30%. Calculate the break-even point...
Saved The following income statement is provided for Vargas, Inc. Sales revenue (3,100 units * $20.60 per unit) Cost of goods sold (variable; 3,100 units * $10.60 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (3,100 units x $2.60 per unit) Net income $ 63,860 (32,860) (4,600) 26,400 (6,600) (5,600) (8,060) $ 6,140 What is this company's magnitude of operating leverage?
The following Income statement is provided for Vargas, Inc. Sales revenue (2,800 units * $20.30 per unit) Cost of goods sold (variable; 2,800 units * $10.30 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,800 units * $2.30 per unit) Net income $ 56,840 (28,840) (4,300) 23,700 (6,300) (5,300) (6,440) $ 5,660 What is this company's magnitude of operating leverage? (Round your answer to 2 decimal places.) Multiple Choice 0.24 419 0.25
Problem IV Assessing the magnitude of operating lever The following income statement is provided for Vargas, Inc. 10 points Sales revenue (2.500 units x 560 per unit) Cost of goods sold (variable: 2.500 units x 520 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,500 units x 54 per unit) Net income $ 150.000 (50,000) (8,000 ) 92,000 (42,000) (10,000) (10.000 S 30.000 a) What is this company's magnitude of operating leveraget b) Use the...
The following income statement is provided for Awesomeness Company for the current year: $ Sales revenue (3,000 units x $42 per unit) Cost of goods sold (variable; 3,000 units $15 per unit) 126,000 (45,000) Cost of goods sold (fixed) (9,000) Gross margin 72,000 Administrative salaries Depreciation (11,000) (9,000) (15,000) Supplies (3,000 units x $5 per unit) Net income $ 37,000 What amount was the company's contribution margin? A. $66,000 B. $81,000 C.$37,000 D. $48,000
Presented below is the income statement of Goodwin Inc. The
income statement is based on sales of 100,000 units at $20 per
unit.
Goodwin estimates that 80% of Cost of Goods Sold is variable
costs, and 80% of Operating expenses is fixed costs.
9.Refer to the previous question. What is the amount of the
increase or decrease in net income?
10.Assume Goodwin reduces the selling price by 10%. How many
units would Goodwin have to sell to earn the same...
Presented below is the income statement of Goodwin Inc. The
income statement is based on sales of 100,000 units at $20 per
unit.
Goodwin estimates that 80% of Cost of Goods Sold is variable
costs, and 80% of Operating expenses is fixed costs.
Goodwin is considering lowering the sales price in order to
increase sales. Management believes that if it reduces the selling
price by 10%, then sales (in units) will increase 10%.
8.If Goodwin reduces the selling price by...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
465,000
Beginning merchandise inventory
$
31,000
Purchases
$
310,000
Ending merchandise inventory
$
15,500
Fixed selling expense
$
?
Fixed administrative expense
$
18,600
Variable selling expense
$
23,250
Variable administrative expense
$
?
Contribution margin
$
93,000
Net operating income
$
27,900
Prepare a contribution format income statement.
Prepare a traditional format income statement.
Calculate the selling price per unit, the variable...
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