A company operated at 82% of its capacity for the past year. Fixed costs during this time were $126,000, variable costs were 60% of sales, and sales were $790,000. Calculate the company's operating profit. a. $175,000 b. $82,000 c. $155,800 d. $190,000

A company operated at 82% of its capacity for the past year. Fixed costs during this time were $126,000, variable costs were 60% of sales, and sales were $790,000. Calculate the company's operating profit. a. $175,000 b. $82,000 c. $155,800 d. $190,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A company's divislon has sales of $6,000,000, Income of $240,000, and average assets of $4,800.000.…

A: Financial ratios are used to check different aspects of a company - liquidity, solvency, etc. They…

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: RESIDUAL INCOME Residual income is the net income generated above the required rate of return…

Q: Required: How many units would the company have to produce and sell if they desired net income of $…

A: Desired net income refers to the specific profit amount a company aims to achieve within a defined…

Q: 11. What is last year’s residual income? 12. What is the residual income of this year’s…

A: Residual Income :— Residual Income is income that one continues to receive after the completion of…

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: ROI is one of the profitability ratio which shows ratio between net operating income with average…

Q: Tadman Incorporated reported the following results from last year's operations: Sales Variable…

A: The contribution Margin is calculated as difference between sales and variable cost. The…

Q: westerville company reported the following results from last year's operations: sales $1,600,000…

A: An investment property is a piece of real estate purchased with the intention of generating a profit…

Q: The condensed income statement for a Fletcher Inc. for the past year is as follows: Product F…

A: The income statement shows the net income or net loss calculated by deducting the expenses from the…

Q: Beery Incorporated reported the following results from last year's operations: Sales Variable…

A: Overall average operating assets (6,000,000+900,000)*$6,900,000Contribution margin…

Q: The Ganbatte year end operating results were as follows: Total Sales of $750.000 Operated at 75% of…

A: BEP is Break even point revenue in business at which business is only recovering it's total costs…

Q: The following data has been provided for a company’s most recent year of operations: Return on…

A: The objective of this question is to calculate the residual income for the company's most recent…

Q: The following information relates to the Quilt Division of TDS Corporation for last year: Sales…

A: Given, Net operating income = $60,000 Average operating assets = $500,000 Minimum required rate of…

Q: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40%…

A: Step 1: Step 2: Step 3: Step 4:

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: Profit margin is the percentage of income earned on the sales of a period after deducting the…

Q: pre.8

A: The objective of this question is to calculate the net income of Birdsong Company based on the given…

Q: A firm operated at 80% of capacity for the past year, during which fixed costs were $206,000,…

A: The question is based on the concept of Financial Management.

Q: A company provided the following results from It's operations: Total Sales $400,000 Variable…

A: Lets understand the basics. Contribution margin is a margin generated from sales. Contribution…

Q: The residual income for the year was clos

A: Residual Income = Operating Income - (Minimum Required Return x Average Operating assets) Operating…

Q: A firm operated at 80% of capacity for the past year, during which fixed costs were $203,000,…

A: Fixed Costs are the cost that does not change with the change in the output. It remains the same…

Q: company reported the following data for its past 2 years of operation: Year 1 Return on Investment…

A: Solution: Return on investment for year 2 = 20% Required return for year 2 = 10% Residual income =…

Q: The Millard Division's operating data for the past two years are provided below: Return on…

A: Lets understand the basics.Formula for calculating net operating income are,First we will need to…

Q: East Mullett Manufacturing earned operating income last year as shown in the following income…

A: Residual income = Operating income - Average operating assets x minimum rate of return

Q: Westerville Company reported the following results from last year's operations: Sales $ 1,800,000…

A: Investment means we invest money in anything that gives a return.

Q: Sales 13,000,000 Variable expenses 8,600,000 Contribution margin 4,400,000 Fixed expenses 2,940,000…

A: Minimum required return = $8,000,000 x 15% = $1,200,000

Q: Required information [The following information applies to the questions displayed below.]…

A: The most important profit statistic in real estate is net operating income (NOI). It aims to…

Q: A company's sales last year were $50 million and its manufacturing plant operated at 85% of…

A: The fixed asset turnover ratio is a financial metric used to measure how efficiently a company…

Q: Variable costs as a percentage of sales for Lemon Inc. are 66%, current sales are $534,000, and…

A: In CVP analysis, operating income is a key metric because it helps businesses determine the level of…

Q: Provide answer please

A: To get the amount of change of net income for the current year after the discontinuance of of…

Q: Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed…

A: Residual income: Residulal income means excess of income earned over the desired income. Desired…

Q: year, during which fixed costs were $207,000, variable costs were 63% of sales, and sales were…

A: Operating income involves the income generated by normal business transactions. This means that the…

Q: Westerville Company reported the following results from last year’s operations: Sales $…

A: Return on investment (ROI) :— It is calculated by dividing net operating income by average operating…

Q: Quest's return on investment is A. 10.0% B. 13.3% C. 27.5% D. 30.0%

A: The following information pertains to Co.'s Gold Division for the year just ended: Sales…

Q: The contribution format income statement for Huerra Company for last year is given below: Sales…

A: Answer:- Return on Investment (ROI) is a financial ratio used as a measure of the profitability of…

Q: Holland Corporation earned an after-tax net income of $182,000 last year. Fixed costs were $750,000.…

A: Breakeven is the point at which the entity is in a situation of no profit and no loss. At this…

Q: Division D of Saunders Company has sales of $350,000, cost of goods sold of $120,000, operating…

A: Ratio analysis is a quantitative method of getting inside review of an organisation. Ratio analysis…

Q: Need help

A: To analyze the financial impact of discontinuing Product G, let's break down the information…

Q: Required Information of 15 The following information applies to the questions displayed below]…

A: Margin = operatin income/ net sales

Q: The contribution format income statement for Huerra Company for last year is given below: Unit $…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Scottso Division has the following results for the year: * $1,080,000 Revenues Variable expenses…

A: Net income = $1,080,000 - $440,000 - $400,000 = $240,000

Q: Neef Corporation has provided the following data for its two most recent years of operation: Selling…

A: The question is based on the concept of Cost Accounting.

Q: A firm operated at 80% of capacity for the past year, during which fixed costs were $190,000,…

A: Variable Income Statement - Variable Costing Income Statement shows Sales - Variable Cost =…

Q: esterville Company reported the following results from last year’s operations: Sales $ 1,500,000…

A: Margin represents the percentage income earned by the company on the sales. It is calculated by…

Question

$175,000

$82,000

$155,800

$190,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to operating profit

VIEW

Step 2: Computation of operating profit

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A company has invested assets of $3,500,000, total sales of 30,000 units and a desired ROI per unit of 20% . What is the ROI per unit? Group of answer choices $233.33 $70. $23.33 $700,000.
If a business had sales of $4,369,000 and a margin of safety of 20%, the break-even point was a.$3,495,200 b.$873,800 c.$7,864,200 d.$5,242,800
Cost Volume Profit Total Company produces one type of machine with the following costs and revenues for the year: Total revenues $4,200,000 Total fixed costs $1,400,000 Total variable costs $2,800,000 Total units produced and sold 700,000 A.calculate the break even quantity of sales increased by 20%b. Calculate the operating margin if 50000 unit are sold
Question 1: Estimation of WC The management of ABC Company Limited has called for a statement showing the WC needed to finance a level of activity of 3,00,000 units of output per year. The cost statement of the company's product, for the above-mentioned activity level, is given below: Cost per unit TK 20 Direct material Direct labor Overhead Total cost Target profit Target selling price 5 TK 15 40 10 TK 50 1. Past records show that raw materials are held in stock, on an average, for two (2) months; 2. Work in process (WIP) will approximate to 15 days production; 3. Finished goods remain in warehouse on average for 1 month; 4. Suppliers for materials extend one month's credit; 5. Two months credit is normally allowed to customers (assume all sales are on credit) 6. A minimum cash balance of TK 5,00,000 is expected to be maintained; 7. The production pattern is assumed to be even during the year. Prepare a Statement of Working Capital Requirements
Sw.
Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses $ 1,600,000 700,000 900,000 660,000 Net operating income $4 240,000 Average operating assets $ 1,000,000 At the beginning of this year, the company has a $325,000 investment opportunity with the characteristics: Sales Contribution margin ratio Fixed expenses $ 520,000 70 % of sales $ 312,000 The company's minimum required rate of return is 15%. 9. If the company pursues the investment opportunity and otherwise performs the same as last year, wha (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%.)) ROI % ( Prev 1O Pr Ps to search RELS
Westerville Company reported the following results from last year’s operations: Sales $ 1,800,000 Variable expenses 740,000 Contribution margin 1,060,000 Fixed expenses 700,000 Net operating income $ 360,000 Average operating assets $ 1,200,000 At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics: Sales $ 600,000 Contribution margin ratio 60 % of sales Fixed expenses $ 288,000 The company’s minimum required rate of return is 10%. 6. What is the ROI related to this year’s investment opportunity? (Do not round intermediate calculations.) 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 8. If the company pursues the investment opportunity and otherwise performs the same as last year,…
A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating profit was: Answer a. $980,000 b. $420,000 c. $1,080,000 d. $180,000
Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format income statement follows: Total Department A Department B Sales $ 800,000 $ 350,000 $ 450,000 Variable expenses 320,000 120,000 200,000 Contribution margin 480,000 230,000 250,000 Fixed expenses 400,000 140,000 260,000 Net operating income (loss) $ 80,000 $ 90,000 $ (10,000) The company says that $120,000 of the fixed expenses being charged to Department B are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 12%. What is the financial advantage (disadvantage) of discontinuing Department B?
Westerville Company reported the following results from last year’s operations: Sales $ 1,800,000 Variable expenses 740,000 Contribution margin 1,060,000 Fixed expenses 700,000 Net operating income $ 360,000 Average operating assets $ 1,200,000 At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics: Sales $ 600,000 Contribution margin ratio 60 % of sales Fixed expenses $ 288,000 The company’s minimum required rate of return is 10%. 2. What is last year’s turnover? (Round your answer to 1 decimal place.) 3. What is last year’s return on investment (ROI)? (Round your intermediate calculations to 1 decimal place.) 4. What is the margin related to this year’s investment opportunity? 5. What is the turnover related to this year’s investment opportunity? (Round your answer to 1 decimal place.)