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6.  Determine the maximum operating income possible with the expanded plant. $fill in the blank 8 7.  If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? $fill in the blank 9

6.  Determine the maximum operating income possible with the expanded plant. $fill in the blank 8 7.  If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? $fill in the blank 9

FINANCIAL ACCOUNTING
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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6.  Determine the maximum operating income possible with the expanded plant.
$fill in the blank 8

7.  If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year?
$fill in the blank 9 

 
E Hospital List - Google x B 4-1 Problem Set: Mod X * CengageNOWv2 |On x b My Questions | bartlel x © Management is consic X * Cengage Learning + A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Problem Set: Module 4 O eBook Show Me How Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs 90,000,000 Total fixed costs 42,100,000 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost 06 Unit contribution margin 100 3. Compute the break-even sales (units) for the current year. 421,000 v units 4. Compute the break-even sales (units) under the proposed program for the following year. > 451,000 V units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $57,900,000 of operating income that was earned in the current year. 1,030,000 V units 6. Determine the maximum operating income possible with the expanded plant. X 7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? Income 8. Based on the data given, would you recommend accepting the proposal? Check My Work Previous 12:17 AM P Type here to search 99 53°F Clear 12/8/2021
Transcribed Image Text:E Hospital List - Google x B 4-1 Problem Set: Mod X * CengageNOWv2 |On x b My Questions | bartlel x © Management is consic X * Cengage Learning + A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Problem Set: Module 4 O eBook Show Me How Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs 90,000,000 Total fixed costs 42,100,000 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost 06 Unit contribution margin 100 3. Compute the break-even sales (units) for the current year. 421,000 v units 4. Compute the break-even sales (units) under the proposed program for the following year. > 451,000 V units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $57,900,000 of operating income that was earned in the current year. 1,030,000 V units 6. Determine the maximum operating income possible with the expanded plant. X 7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? Income 8. Based on the data given, would you recommend accepting the proposal? Check My Work Previous 12:17 AM P Type here to search 99 53°F Clear 12/8/2021
E Hospital List - Google x B 4-1 Problem Set: Mod X * CengageNOWv2 | On x b My Questions | bartlel x O Management is consic X * Cengage Learning + A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Problem Set: Module 4 1 eBook Show Me How Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $190 per unit during the current year. Its income statement is as follows: Sales $190,000,000 Cost of goods sold (101,000,000) Gross profit $89,000,000 Expenses: Selling expenses $15,000,000 Administrative expenses 16,100,000 Total expenses (31,100,000) Operating income $57,900,000 The division of costs between variable and fixed is as follows: > Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program for the following year that will permit an increase of $13,300,000 in yearly sales. The expansion will increase fixed costs by $3,000,000 but will not affect the relationship between sales and variable costs. Required: Check My Work Previous 12:17 AM O Type here to search 99 53°F Clear 12/8/2021
Transcribed Image Text:E Hospital List - Google x B 4-1 Problem Set: Mod X * CengageNOWv2 | On x b My Questions | bartlel x O Management is consic X * Cengage Learning + A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Problem Set: Module 4 1 eBook Show Me How Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $190 per unit during the current year. Its income statement is as follows: Sales $190,000,000 Cost of goods sold (101,000,000) Gross profit $89,000,000 Expenses: Selling expenses $15,000,000 Administrative expenses 16,100,000 Total expenses (31,100,000) Operating income $57,900,000 The division of costs between variable and fixed is as follows: > Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program for the following year that will permit an increase of $13,300,000 in yearly sales. The expansion will increase fixed costs by $3,000,000 but will not affect the relationship between sales and variable costs. Required: Check My Work Previous 12:17 AM O Type here to search 99 53°F Clear 12/8/2021
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