A department of Company X attains sale of 50,00,000 at 75 percent of its normal capacity and its expenses are given below: Administration costs: (*) Office Salaries 900,000 General expenses 3 per cent of sales Depreciation 75,000 Rates and Taxes 90000 Selling Costs Salaries 9 per cent of sales Travelling expenses 6 per cent of sales Sales office expenses 3 per cent of sales General expenses 3 per cent of sales Distribution Costs Wages 150,000 Rent 1.5 per cent of sales Other expenses 4.5 per cent of sales PREPARE flexible administration, selling and distribution costs budget, operating at 100 per cent and 120 per cent of normal capacity.

Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BUCKLEY COMPANY Income Statements for Year 2 Segment A   B   C Sales $ 330,000     $ 480,000     $ 500,000   Cost of goods sold   (242,000 )     (184,000 )     (190,000 ) Sales commissions   (30,000 )     (44,000 )     (44,000 ) Contribution margin   58,000       252,000       266,000   General fixed operating expenses (allocation of president’s salary)   (92,000 )     (92,000 )     (92,000 ) Advertising expense (specific to individual divisions)   (6,000 )     (20,000 )     0   Net income (loss) $ (40,000 )   $ 140,000     $ 174,000     Required Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Options for required A table are: Advertising…

Adams Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated.  ADAMS COMPANY Income Statements for Year 2 Segment A   B   C Sales $ 166,000     $ 250,000     $ 265,000   Cost of goods sold   (126,000 )     (79,000 )     (77,000 ) Sales commissions   (22,000 )     (23,000 )     (32,000 ) Contribution margin   18,000       148,000       156,000   General fixed operating expenses (allocation of president’s salary)   (39,000 )     (50,000 )     (25,000 ) Advertising expense (specific to individual divisions)   (5,000 )     (15,000 )     0   Net income (loss) $ (26,000 )   $ 83,000     $ 131,000     Required Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A.

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Shown here is an income statement in the traditional format for a firm with a sales volume of 8,000 units. Cost formulas also are shown:        Revenues $ 32,000 Cost of goods sold ($6,000 + $2.10/unit)   22,800 Gross profit $ 9,200 Operating expenses:     Selling ($1,200 + $0.10/unit)   2,000 Administration ($4,000 + $0.20/unit)   5,600 Operating income $ 1,600   Required: Prepare an income statement in the contribution margin format. Calculate the contribution margin per unit and the contribution margin ratio. Calculate the firm’s operating income (or loss) if the volume changed from 8,000 units to 12,000 units. 4,000 units. Refer to your answer to part a for total revenues of $32,000.Calculate the firm’s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues Increase $12,000. Decrease $7,000.

ans plz

Omega Company has the following two customers:   Woodruff Ensley Sales $900,000 $800,000 Cost of Goods Sold   360,000 160,000 Other expenses excluding sales commissions 640,000 130,000 If the company pays a 4% sales commission based on customer profit, this will encourage a salespersons' efforts to sell to:

Whitman Company has just completed its fi rst year of operations. The company’s absorption costing income statement for the year appears below: Whiteman CompanyIncome Statement Sales (35000 units)Rs.875,000 Cost of goods sold @ of Rs.16 per unit560,000 Gross Profit315,000 Selling and Administrative expenses280,000 Net operating income35,000   The company’s selling and administrative expenses consist of Rs.210,000 per year in fixed expenses and Rs.2 per unit sold in variable expenses. The Rs.16 per unit product cost given above is computed as follows:Direct MaterialsRs.5 Direct Labour6 Variable manufacturing overhead1 Fixed manufacturing overhead (Rs.160,000 ÷ 40,000 units)4 Absorption costing unit product cost16     Required: Redo the company’s income statement in the contribution format using variable costing. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement…

Company X requires sales of $2,042,000 to achieve its target net income. Contribution margin ratio of company X is 25% and fixed costs amounts to $150,000. Determine the amount of target net income. $2,192,000 $548,000 $360,500 $510,500

Haresh