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Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company’s contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below:
Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company’s contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Divisions Total Company Cloth Leather Sales R 5,040,000 R 2,800,000 R 2,240,000 Variable expenses 2,224,000 1,150,000 1,074,000 Contribution margin 2,816,000 1,650,000 1,166,000 Traceable fixed expenses: Advertising 875,000 490,000 385,000 Selling and administrative 636,000 400,000 236,000 Depreciation 267,000 134,000 133,000 Total traceable fixed expenses 1,778,000 1,024,000 754,000 Divisional...
Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company’s contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Divisions Total Company Cloth Leather Sales R 1,770,700 R 2,050,000 R 1,640,000 Variable expenses 3,690,000 970,000 800,700 Contribution margin 1,919,300 1,080,000 839,300 Traceable fixed expenses: Advertising 623,000 310,000 313,000 Selling and administrative 438,000 220,000 218,000 Depreciation 231,000 116,000 115,000 Total traceable fixed expenses 1,292,000 646,000 646,000 Divisional...
Morton Company’s contribution format income statement for last month is given below: Sales (44,000 units × $28 per unit) $ 1,232,000 Variable expenses 862,400 Contribution margin 369,600 Fixed expenses 295,680 Net operating income $ 73,920 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits....
Morton Company’s contribution format income statement for last month is given below: Sales (44,000 units × $23 per unit) $ 1,012,000 Variable expenses 708,400 Contribution margin 303,600 Fixed expenses 242,880 Net operating income $ 60,720 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits....
Morton Company’s contribution format income statement for last month is given below: Sales (45,000 units × $23 per unit) $ 1,035,000 Variable expenses 724,500 Contribution margin 310,500 Fixed expenses 248,400 Net operating income $ 62,100 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits....
Morton Company’s contribution format income statement for last month is given below: Sales (15,000 units × $30 per unit) $450,000 Variable expenses 315,000 Contribution margin 135,000 Fixed expenses 90,000 Net operating income$45,000 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $9 per unit. However, fixed expenses would increase to a total of $225,000 each month. Prepare two contribution format income statements, one...
Morton Company’s contribution format income statement for last month is given below: Sales (41,000 units × $25 per unit) $ 1,025,000 Variable expenses 717,500 Contribution margin 307,500 Fixed expenses 246,000 Net operating income $ 61,500 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits....
Morton Company’s contribution format income statement for last month is given below: Sales (47,000 units × $27 per unit) $ 1,269,000 Variable expenses 888,300 Contribution margin 380,700 Fixed expenses 304,560 Net operating income $ 76,140 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits....
Merton Company's contribution format income statement for last month is given below: c. The margin of safety in both dollar and percentage terms. Sales (50,000 units x $20 per unit) Variable expenses $1,000,000 700,000 Present Proposed Contribution margin Fixed expenses 300.000 240,000 Margin of safety in dollar Margin of safety in percentage Net operating income S 80.000 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to...
Miller Company’s contribution format income statement for the most recent month is shown below: TotalPer UnitSales (36,000 units)$216,000$6.00Variable expenses108,0003.00Contribution margin108,000$3.00Fixed expenses49,000Net operating income$59,000 Required:(Consider each case independently): 1. What is the revised net operating income if unit sales increase by 20%?2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 22%?3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses...