Worksheet for CLA 2 c

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Westcliff University *

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323

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Accounting

Date

Nov 24, 2024

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xlsx

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20

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For this 1st part of the CLA2 please explain the initial problem and all assumptions then provide solutio and for both parts of CLA2 please provide at least 5 references these references 1 should be from the Guitar sales $ 370,500 cost of goods sold $ 320,000 Gross profit= sales - cost of goods sold $ 50,500 Direct expenses salaries $ 35,000
maintenance $ 12,000 utilities $ 5,000 insurance $ 4,200 Direct Expenses $ 56,200 Indirect Expenses Advertising $ 8,550 Salaries $ 16,200 Office Expenses $ 2,000.00 Indirect Expenses $ 26,750 Operating Income $ (32,450)
on and explain your work in detail textbook as source of the data Piano Combine $ 279,500 $ 650,000 0.57 $ 175,000 $ 495,000 0.43 $ 104,500 $ 155,000 $ 25,000 $ 60,000
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$ 10,000 $ 22,000 $ 4,500 $ 9,500 $ 3,700 $ 7,900 $ 43,200 $ 99,400 $ 6,450 $ 15,000 $ 10,800 $ 27,000 $ 1,200.00 $ 3,200 $ 18,450 $ 45,200 $ 42,850 $ 10,400
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Observation 3How much would operating income increase over th 4An unfavorable change in business is is remotely po units. How much income or loss from operation wo Question 1:
Classify and identify all unit and fixed costs Sales Variable costs Unit costs Direct materials $ 975,000.00 $ 65 Direct Labor $ 225,000.00 $ 15 Machinery repair $ 60,000.00 $ 4 Equipment depreciation $ - Utilities $ 45,000.00 $ 3 Plant management salaries $ - Packaging $ 75,000.00 $ 5 Shipping $ 105,000.00 $ 7 Sales salary $ - Advertising expenses $ - Salaries $ - Entertainment expense $ - Total unit variable $ 99.00 Total fixed costs Requirement 2-A: At 14,000 UNITS Sales per unit = Number of units Sales per unit 14000 $ 200 Sales Direct materials $ 65.00 $ 14,000.00 Direct labor $ 15.00 $ 14,000.00 Machinery $ 4.00 $ 14,000.00 Utility $ 3.00 $ 14,000.00 Packaging $ 5.00 $ 14,000.00 Shipping $ 7.00 $ 14,000.00 Total variable cost Contribution margin
Fixed Cost Selling cost Equipment depreciation Utilities Plant management salaries Sales salary Salaries Total selling expense Administrative Entertainment expense Advertising expenses Total administrate cost Total fixed cost Operating income Observation: There is no observation for the first income statement. Requirement 2-B: At 16,000 UNITS Number of units Sales per unit 16000 $ 200 Sales Direct materials $ 65.00 $ 16,000 Direct labor $ 15.00 $ 16,000 Machinery $ 4.00 $ 16,000 Utility $ 3.00 $ 16,000 Packaging $ 5.00 $ 16,000 Shipping $ 7.00 $ 16,000 Total variable cost Contribution margin Fixed Cost Selling cost Equipment depreciation Utilities Plant management salaries Sales salary Salaries Total selling expense
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Administrative Entertainment expense Advertising expenses Total administrate cost Total fixed cost Operating income Observation: If the number of units in sales increase be 1000 then the the increa Requirement 3: At 18,000 UNITS Number of units Sales per unit 18000 $ 200 Sales $ 200 18,000 Direct materials 65 18,000 Direct labor 15 18,000 Machinery 4 18,000 Utility 3 18,000 Packaging 5 18,000 Shipping 7 18,000 Total variable cost 99 18,000 Contribution margin 101 18,000 Fixed Cost Selling cost Equipment depreciation Utilities Plant management salaries Sales salary Salaries Total selling expense Administrative Entertainment expense Advertising expenses Total administrate cost Total fixed cost Operating income Observation: If the number of unites in sales will increase by 3000 units then the in
Requirement 4: At 12,000 UNITS Number of units Sales per unit Sales 12000 $ 200 Direct materials $ 65.00 $ 12,000 Direct labor $ 15.00 $ 12,000 Machinery $ 4.00 $ 12,000 Utility $ 3.00 $ 12,000 Packaging $ 5.00 $ 12,000 Shipping $ 7.00 $ 12,000 Total variable cost Contribution margin Fixed Cost Selling cost Equipment depreciation Utilities Plant management salaries Sales salary Salaries Total selling expense Administrative Entertainment expense Advertising expenses Total administrate cost Total fixed cost Operating income Observation: If the sales volume will decrease to 12,000 then the operating loss will be $144 Please answer the following questions: Observation 3 How much would operating income increase over the budgeted amount of $1 4 An unfavorable change in business is is remotely possible, in this case, produc units. How much income or loss from operation would occur if sales volume f
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he budgeted amount of $159,000 if a level of 18,000 units without ossible, in this case, production and sales volume for this year could ould occur if sales volume fails to this level
Sales 3,000,000 Units 15,000 Unit price 200 Fixed costs $ 300,000.00 $ 150,000.00 $ 200,000.00 $ 250,000.00 $ 125,000.00 $ 241,000.00 $ 90,000.00 1,356,000 Determine the variable cost per unit' Hints The first income statement Sales 2,800,000 Units at first FB 14,000 Variable cost per unit 200 $2,800,000.00 $910,000.00 $210,000.00 $56,000.00 $42,000.00 $70,000.00 $98,000.00 $1,386,000.00 $1,414,000.00
t $300,000.00 $150,000.00 $200,000.00 $250,000.00 $241,000.00 $1,141,000.00 cost $ 90,000.00 $ 125,000.00 $215,000.00 $1,356,000.00 $ 58,000 $3,200,000.00 $1,040,000.00 $240,000.00 $64,000.00 $48,000.00 $80,000.00 $112,000.00 $1,584,000.00 $1,616,000.00 t $300,000 $150,000 $200,000 $250,000 $241,000 $1,141,000
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cost $90,000.00 $125,000.00 $215,000.00 $1,356,000.00 $ 260,000 ase in the operating income will be $101,000. $3,600,000.00 $1,170,000.00 $270,000.00 $72,000.00 $54,000.00 $90,000.00 $126,000.00 $1,782,000.00 $1,818,000.00 t $300,000 $150,000 $200,000 $250,000 $241,000 $1,141,000 cost $90,000.00 $125,000.00 $215,000.00 $1,356,000.00 $ 462,000 ncrease in the operating income will be $303,000.
$2,400,000.00 $780,000.00 $180,000.00 $48,000.00 $36,000.00 $60,000.00 $84,000.00 $1,188,000.00 $1,212,000.00 t $300,000 $150,000 $200,000 $250,000 $241,000 $1,141,000 cost $90,000.00 $125,000.00 $215,000.00 $1,356,000.00 $ (144,000) 4,000. 159,000 if a level of 18,000 units without increasing capacity? ction and sales volume for this year could fall to $12,000 fails to this level
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t increasing capacity? d fall to $12,000
3000000 15000 200