378,000Gross margin.Less operating expenses:Shipping expense...Advertising expensenicm Salaries and commissions....Insurance expense...Depreciation expense.. .Total operating expenses..Net income (loss)...252,000315,00044,00070,000107,0009,00042,000272,000P (20,000) P 19,000 P 58,00050,00070,000125,000U9,00042,000296,00056,00070,000143,0009,00042,000320,0001. Identify each of the company's expenses (including cost of goods sold)as being either variable, fixed, or mixed.2. By use of the high-low method, separate each mixed expense intovariable and fixed elements. State the cost formula for each mixedexpense.3. Redo the company's income statement at the 4,500-unit level of activity2 using the contribution format. Lily Company, a British merchandising firm, is the exclusive distributor of aproduct that is gaining rapid market acceptance. The company's revenuesand expenses for the last three months are given below:LILY COMPANYComparative Income Statement ReFor the Three Months Ended June 30April3.000May3,750JuneSales in units4,500Sales revenue....P420,000 P525,000 P630,000168,000Less cost of goods sold210,000 252,000

Solution : Requirement 1 Cost Classification Cost of goods sold Variable Shipping…

Answered: 1. Identify each of the company's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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7
(Multiple Choice) A multi-step income statement ________. A. separates cost of goods sold from operating expenses B. considers interest revenue an operating activity C. is another name for a simple income statement D. combines cost of goods sold and operating expenses
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The branch of accounting that deals in particular with the different cost concepts in order to arrive for the indicating the selling price is Select one: a. Cost Accounting b. Financial Accounting C. Management Accounting d. Financial and Management Accounting
To find the weighted average contribution margin, a company adds up the individual unit contribution margins of the different products and then divides by the total number of different products True or false
Question 3: Net profit (or loss) expresses the difference between the price that materials or goods (food) were sold for with all associated costs subtracted. This includes the materials costs (e.g. food), labour costs and all other overhead costs (e.g. packaging, power costs, rent, etc.). Express the Total Costs in money($), net profit (NP) in money ($) and as a percentage (%) in the table below. Show the working below the table. Sales $140.55 $175.98 $.268.90 $555.65 $1010.80 Food Costs $40,99 $55.45 $81.38 $120.00 $300.70 Labour Costs $50.50 $61.25 $90.45 $155.98 $240.54 Overheads $23.34 $34.00 $74.88 $111.54 $230.78 Total Costs Net Profit (S) Net Profit as %
Period costs include: a. current liabilities on the balance sheet b. operating costs that are shown on the income statement in the period in which they are incurred c. current assets on the balance sheet d. operating costs that are shown on the income statement when the products are sold
The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 3,800 sets per year. Annual cost data at full capacity follow: Direct labor Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building Administrative office supplies (billing) Administrative office salaries Direct materials used (wood, bolts, etc.) Utilities, factory $ 89,000 $ 103,000 $70,000 $ 23,000 $ 65,000 $ 6,000 $ 2,000 $ 17,000 $ 18,000 $ 106,000 $ 5,000 $ 111,000 $ 426,000 $ 46,000 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling…
An analyst is constructing a simple model to determine the gross and net profit of a product, given its profit per unit, quantity sold, and the total costs assigned to the product. The calculation for gross profit is Profit per Unit times Quantity. The calculation for Net Profit is Gross Profit minus Total Costs. A B 1. 2 Profit per Unit 8 3 Quantity |10,100 4 Gross Profit 5 6 Total Costs 6,100 7 8 Net Profit With the values for Profit per Unit, Quantity, and Total Costs shown above, what should the model return for the following calculated cells? Cell Value Gross Profit Net Profit
On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total Revenues Line represents profit. TRUE FALSE
Which of the following statements correctly complete the sentence:"Gross Margin equals":I. sales revenue less (minus) cost of goods sold.II. contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV. sales revenue less (minus) cost of goods manufactured.

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