Homework Answers
Option B $138,000 is the right answer as calculated below.
Margin of Safty in Dollars = Sales in $ - Break even sales in $
Break even sales ; Fixed Cost / (Sales -Variable cost per unit)
$139,980+110,000 / ($20-$14.2) ; 43,100 units
Break even sales in $ ; 43,100*$20 ; $862,000
MArgin of Safty = $1,000,000- $862,000 ; $138,000 Option B
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13 The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year....
The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year: Sales...
The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year: Sales (50,000 units) $1,000,000 Costs: Direct materials $270,000 Direct labor 240,000 l'ixed factory overhead Variable factory overhead Fixed marketing costs Variable marketing costs 100,000 150,000 110,000 50.000 920,000 $ 80,000 Pretax income If Griffith Corporation's income tax rate is 40%, compute the number of units that must be sold in order to achieve a target pretax income of $130,000. Select one: a. 53,165. b. 81,250....
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If...
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation is able to achieve the budgeted level of sales, its margin of safety in dollars would be (Do not round intermediate calculations.): Sales (58,000 units) $986,000 Costs: Direct materials $149,200 Direct labor 240,800 Fixed factory overhead 104,000 Variable factory overhead 150,800 Fixed marketing costs 110,800 Variable marketing costs 50,800 806,400 Pretax income $179,600.
Question 19 2.5 pts The budgeted income statement presented below is for Burkett Corporation for the...
Question 19 2.5 pts The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $130,000 100% $ 1,000,000 Collapse Sales (50,000 units) Costs: Direct materials Direct labor Fixed factory overhead Variable factory overhead Fixed marketing costs Variable marketing costs Pretax income $ 270,000 240,000 100,000 150,000 110,000 50,000 920,000 $ 80,000 53,165 81.250. 36,207. 50,000 58,621 D...
The budgeted Income statement presented below is for Burkett Corporation for the coming fiscal year. Compute...
The budgeted Income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $150,800. $988.000 Sales (52,000 units) Costs: Direct materials Direct labor Fixed factory overhead Variable factory overhead Fixed marketing costs Variable marketing costs Pretax income $ 235, 400 240,200 101,000 150,200 110,200 50,200 887,200 $100,800 Multiple Choice 50.200 60.333 35.200 Forrester Company is considering buying new equipment that...
Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the...
Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,700, what dollar amount of sales must be made to produce the target income? $94,700 $160,000 $29,400 C) $130,600 $189,400 The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $179,000. $990,000 Sales...
3. Prepare a contribution margin income statement based on the budgeted figures for next year. In...
3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. Head-First Company Contribution Margin Income Statement For the Coming Year Percent of Sales Refer to the list below for the exact wording of text...
Parkins Company produces and sells a single product. The company's income statement for the most recent...
Parkins Company produces and sells a single product. The company's income statement for the most recent month is given below: $240,000 Sales (6,000 units at $40 per unit) Less Manufacturing costs: Direct materials Direct labor (variable) Variable factory overhead Fixed factory overhead Gross Margin Less selling and other expenses Variable selling and other expenses 24,000 Fixed selling and other expenses 42,000 $48,000 60,000 12,000 30,000 150,000 90,000 Net operating income $24,000 Required: a. Compute the company's monthly break-even point in...
7. Steve Corporation is using the kaizen approach to budgeting for 2018. The budgeted income statement...
7. Steve Corporation is using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: Sales (240,000 units) Less: Cost of goods sold $360,000 240,000 Gross margin Operating expenses (includes $32,000 of fixed costs) 120,000 96,000 Net income $24.000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month Required: Prepare a kaizen-based budgeted income statement for March of 2018.
Q.2. Park Company produces and sells a single product. The company's income statement for the most...
Q.2. Park Company produces and sells a single product. The company's income statement for the most recent month is given below: Sales (6,000 units at $40 per unit) ............. $240,000 Less manufacturing costs: Direct materials............. ..... $48,000 Direct labor (variable) ..... .60,000 Variable factory overhead 12,000 Fixed factory overhead 30,000 150,000 Gross margin ..... 90,000 Less selling and other expenses: Variable selling and other expenses ....... 24,000 Fixed selling and other expenses ........... 42,000 66,000 Net operating income...... $ 24,000...
Q.2. Park Company produces and sells a single product. The company's income statement for the most...
Q.2. Park Company produces and sells a single product. The company's income statement for the most recent month is given below: Sales (6,000 units at $40 per unit) ............. $240,000 Less manufacturing costs: Direct materials............. ..... $48,000 Direct labor (variable) ..... .60,000 Variable factory overhead 12,000 Fixed factory overhead 30,000 150,000 Gross margin ..... 90,000 Less selling and other expenses: Variable selling and other expenses ....... 24,000 Fixed selling and other expenses ........... 42,000 66,000 Net operating income...... $ 24,000...
The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year: Sales (50,000 units) $1,000,000 Costs: Direct materials $270,000 Direct labor 240,000 l'ixed factory overhead Variable factory overhead Fixed marketing costs Variable marketing costs 100,000 150,000 110,000 50.000 920,000 $ 80,000 Pretax income If Griffith Corporation's income tax rate is 40%, compute the number of units that must be sold in order to achieve a target pretax income of $130,000. Select one: a. 53,165. b. 81,250....
Question 19 2.5 pts The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $130,000 100% $ 1,000,000 Collapse Sales (50,000 units) Costs: Direct materials Direct labor Fixed factory overhead Variable factory overhead Fixed marketing costs Variable marketing costs Pretax income $ 270,000 240,000 100,000 150,000 110,000 50,000 920,000 $ 80,000 53,165 81.250. 36,207. 50,000 58,621 D...
The budgeted Income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $150,800. $988.000 Sales (52,000 units) Costs: Direct materials Direct labor Fixed factory overhead Variable factory overhead Fixed marketing costs Variable marketing costs Pretax income $ 235, 400 240,200 101,000 150,200 110,200 50,200 887,200 $100,800 Multiple Choice 50.200 60.333 35.200 Forrester Company is considering buying new equipment that...
Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,700, what dollar amount of sales must be made to produce the target income? $94,700 $160,000 $29,400 C) $130,600 $189,400 The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $179,000. $990,000 Sales...
3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. Head-First Company Contribution Margin Income Statement For the Coming Year Percent of Sales Refer to the list below for the exact wording of text...
Parkins Company produces and sells a single product. The company's income statement for the most recent month is given below: $240,000 Sales (6,000 units at $40 per unit) Less Manufacturing costs: Direct materials Direct labor (variable) Variable factory overhead Fixed factory overhead Gross Margin Less selling and other expenses Variable selling and other expenses 24,000 Fixed selling and other expenses 42,000 $48,000 60,000 12,000 30,000 150,000 90,000 Net operating income $24,000 Required: a. Compute the company's monthly break-even point in...
7. Steve Corporation is using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: Sales (240,000 units) Less: Cost of goods sold $360,000 240,000 Gross margin Operating expenses (includes $32,000 of fixed costs) 120,000 96,000 Net income $24.000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month Required: Prepare a kaizen-based budgeted income statement for March of 2018.
Q.2. Park Company produces and sells a single product. The company's income statement for the most recent month is given below: Sales (6,000 units at $40 per unit) ............. $240,000 Less manufacturing costs: Direct materials............. ..... $48,000 Direct labor (variable) ..... .60,000 Variable factory overhead 12,000 Fixed factory overhead 30,000 150,000 Gross margin ..... 90,000 Less selling and other expenses: Variable selling and other expenses ....... 24,000 Fixed selling and other expenses ........... 42,000 66,000 Net operating income...... $ 24,000...
Q.2. Park Company produces and sells a single product. The company's income statement for the most recent month is given below: Sales (6,000 units at $40 per unit) ............. $240,000 Less manufacturing costs: Direct materials............. ..... $48,000 Direct labor (variable) ..... .60,000 Variable factory overhead 12,000 Fixed factory overhead 30,000 150,000 Gross margin ..... 90,000 Less selling and other expenses: Variable selling and other expenses ....... 24,000 Fixed selling and other expenses ........... 42,000 66,000 Net operating income...... $ 24,000...
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