COMM305 - Week 5 Exercises

Hudson Co. reports the contribution margin income statement for 2019.   HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) $ 2,160,000   Variable costs (9,600 units at $180 each)   1,728,000   Contribution margin $ 432,000   Fixed costs   324,000   Pretax income $ 108,000      1. Compute the company’s degree of operating leverage for 2019.2. If sales decrease by 5% in 2020, what will be the company’s pretax income?3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020.

Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,000 units at $300 each) Variable costs (11,000 units at $240 each) Contribution margin $3,300, өөө 2,640,000 2$ 660,000 360,000 Fixed costs Pretax income $300,000 1. Compute the company's degree of operating leverage for 2019. 2. If sales decrease by 5% in 2020, what will be the company's pretax income? 3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020. Complete this question by entering your answers in the tabs below.

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The following is Pacific Limited’s contribution format income statement for January 2022:        Sales        $1,400,000Variable expenses            700,000Contribution margin        700,000Fixed expenses            400,000Net operating income        $  300,000 The company has no beginning or ending inventories and produced and sold 25,000 units during the month. Required (show your calculation): a. The company’s top management team is currently investigating how many units they need to sell to reach the break-even point. Also, they want to know how much revenue they need to generate to reach the break-even point. What do you think?          b. If the company aim to generate a profit of $155,000, how many extra units they need to sell beyond the break-even point?    c. What is the company’s margin of safety both in dollar and percentage terms? Explain the margin of safety of the company?   d.

Give me answer general accounting

The following is last month's contribution format income statement: Total Sales (12,000) $300,000 Variable costs $225,000 Contribution margin $75,000 Fixed costs $56,000 Net income $19,000 What is the company's margin of safety expressed in units? O A. 2,500 B. 3,040 O C. 8,960 O D. 12,000

Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,425,000.

The targeted net income?

Part ASmart Swim Ltd manufactures and sells swimsuits for $40 each. The estimated income statement for 2020 is as follows:Sales $2,000,000Variable costs (1,100,000)Contribution margin 900,000Fixed costs (765,000)Pre-tax profit $135,000Required:Show all your workings.i. Calculate the company’s break-even point in units of swimsuits and sales dollars for 2020.ii. Calculate the company’s margin of safety in the units of swimsuits. iii. Assume the margin of safety in 2019 was 5,000 units of swimsuits. Are the company’s operations more or less risky in 2020 as compared to 2019? Explain. iv. Assume 2020’s actual sales revenue is $200,000 higher than the projected sales. Calculate the actual pre-tax profit of 2020 assuming the unit selling price, the unit variable cost and the total fixed costs remain constant. v. Assume a tax rate of 40%. Calculate the units of swimsuits that must be sold to earn an aftertax profit of $180,000 assuming the unit selling price, the unit variable cost and the…

Which answer is correct?

What will be the company's contribution margin?

Can you please answer the general accounting question?

The management of Lambda Corporation has received the Notifications following forecast for the next year. Sales revenue $600 000 Fixed cost Vanable cost $275 000 270 000 Total cost Net income 545 000 $55 000 Capacity is a sales volume of $800 000. CASE STUDY 217 (a) Compute (1) the contribution margin: (1) the contribution rate. (b) Compute the break-even point (i) in dollars. (1) as a percent of capacity. (c) Determine the break-even volume in dollars it fixed cost is increased by 540 000, while variable cost is helo to 40% of

CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units)       $10000Variable expenses.       4000Contributions margin.    6000Fixed expenses.               1000Net operating income.     5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…

Starwise Company had the following amounts from its income statement: $100,000 Sales revenue 32,000 Cost of goods sold -fixed 25,000 Cost of goods sold -variable 9,000 Selling expenses - fixed Selling expenses - variable 11,000 Administrative expenses - fixed 12,000 Administrative expenses - variable 8,000 How much is Starwise's contribution margin? $56,000. O$3,000. O $75,000. $43,000.

Prepare CVP income statements. Olsen Company has the following information available for September 2019.   Unit selling price of video game consoles $   400 Unit variable costs $   275 Total fixed costs $52,000 Units sold 600           Instructions (a)   Compute the contribution margin per unit. (b)   Prepare a CVP income statement that shows both total and per unit amounts.

Sheridan Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet). Sales mix is determined based upon total sales dollars.

Subject : - Accounting

i need full details solution with explanation......

Compute the dollar sales to earn the target pre tax net income of this accounting question

Everett Corporation, a company that produces and sells a single product, has provided its contribution format income statement for October: Sales (8,200 units): $452,600 • Variable expenses: $280,200 • Contribution margin: $172,400 Fixed expenses: $115,750 • Net operating income: $56,650 If Everett Corporation sells 9,000 units instead of 8,200 units, what will be its net operating income? A. $69,250 B. $73,800 C. $76,300 D. $80,400

The following annual information is for Bressler Corporation:   Product X Revenue per unit: $10.00 Variable cost per unit: $5.00 Total fixed costs: $100,000 How many units the company has to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?

Problem related to Accounting: Raven Company has a target of earning $88,000 pre-tax income. The contribution margin ratio is 35%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $52,000? a. $313,555. b. $306,000. c. $300,000. d. $353,333. e. $400,000.