A merchandiser plans to sell 13,500 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month: Cost Cost Formula Cost of goods sold Advertising expense Depreciation expense Shipping expense Administrative salaries Sales commissions Insurance expense $60 per unit sold $150,000 per month $70,000 per month $100,000 per month + $10 per unit sold $50,000 per month 5% of sales $15,000 per month What is the éstimated total contribution margin for next month? Multiple Choice $675.000 $465 750

A merchandiser plans to sell 13,500 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month: Cost Cost Formula Cost of goods sold Advertising expense Depreciation expense Shipping expense Administrative salaries Sales commissions Insurance expense $60 per unit sold $150,000 per month $70,000 per month $100,000 per month + $10 per unit sold $50,000 per month 5% of sales $15,000 per month What is the éstimated total contribution margin for next month? Multiple Choice $675.000 $465 750

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Constantine Corporation purchases robes for $12 per unit and then sells them for $25 per unit. The company estimated the following sales for the first four months of the current year: January 8,000 units, February 12,000 units, March 9,000 units and April 7,000 units. The company has rent expense of $5,600 and personnel salaries of $32,000 each month as well as variable advertising costs of $3 per unit based on monthly sales. Ending inventory at December 31st is 2,000 units and for each month after that is expected to be 10% of the next month's sales. What total dollar amount of purchases is projected for March?
Detox corp planned to sell 25,000 units during the next quarter at a selling price of P52 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula P22 per unit sold P172,000 per quarter 5% of sales P54,000 per quarter + P6.00 per unit sold P82,000 per quarter P9,200 per quarter P52,000 per quarter 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
The Lumber Yard has projected the sales below for the next four months. The company collects 37 percent of i sales in the month of sale, 44 percent in the month following the month of sale, 16 percent two months after the month of sale, and never collects 3 percent of its sales. How much will the company collect in April? April January February March Sales $137,900 $144,400 $151,975 $166,000 Multiple Choice O $152,375 $155,530 $119,767 $148,365
Vikrambahi
A company reported the following data: • Sales price per unit: $10 • Fixed cost per month: $20,000 Variable cost per unit: $2 How many units must this company sell each month in order to reach a target profit of $50,000?
Catulla Corporation predicts the following sales in units for the coming four months April May 240 200 June July 300 sales in units Each moners ending Finished Goods Inventory in units should be 40% of the next month's sales Mech 21 Fished Goods inventory a 00 unts A freshed unit requires five pounds of dract material 8 at a cost of $2.00 per pound. The March 31 Raw Materials inventory has 200 pounds of direct matal 8. Each moners ending Raw Materials twentary should be 30% of the following months production needs The budgeted purchases of pounds of direct material during May should be O 1422 pounds 4xpr 210 pan
Jenny Inc. has the following projected costs for the second quarter of 20YY: Projected Costs Expenses April May June Selling and marketing expenses (i) $200,000 $250,000 $300,000 Office insurance expense (ii) 800 800 800 Office depreciation expense 500 500 500 Property tax expense (iii) 700 700 700 Jenny’s payment policy for selling and administrative expenses is as follows: Of the selling and marketing expenses, 50% is paid in the month they are incurred; the remaining 50% to be paid in the following month. The selling and admin expense payable at the end of March was $70,000, which represents 50% of March’s selling expenses. Insurance expense is $800 a month; however, the insurance is paid quarterly in the first month of each quarter, (i.e., in January, April, July, and October). Property taxes are paid once a year in December. The projected total selling and admin expenses for April are: Group of answer choices None of the above $172,400 $202,000 $204,400
The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15% of the price and its ordering cost at $90 per order. On a 360-day basis, determine the following: To determine the number of orders to be place in a year? A. Total demand per year must be multiplied by the economic order quantity B. Economic order quantity must be divided by the Total demand per year C. Economic order quantity must added to the Total demand per year D. Total demand per year must be divided by the economic order quantity E. Economic order quantity must be subtracted from the Total demand per year
TRIUMPHANT Company manufactures wood chairs that sell for USD25 each. Each chair requires 4 linear feet of wood, which costs USD2.00 per foot. Each chair takes approximately 30 minutes to build, and the labor rate averages USD12.00 per hour. TRIUMPHANT has the following inventory policies: Ending finished goods inventory should be 40 percent of next month's sales. Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (chair) for the upcoming months follow: June 225 July 275 August 350 September 400 October 375 November 425 Variable manufacturing overhead is incurred at a rate of USDO,30 per unit produced. Annual fixed manufacturing overhead is estimated to be USD7,200 uction of 4,000 units for the year. Selling and administrative expenses are estimated at USD650 per month plus (USD600 per month) for expected USDO.60 per unit sold. Compute the budgeted direct materials purchases in dollars for the month of August.
Milden Company is a merchandiser planning to sell 12,000 units next quarter at a selling price of $100 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of goods sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $35 per unit sold $210,000 per quarter 6% of sales $28,000 per quarter + $9.10 per unit sold $145,000 per quarter $9,000 per quarter $76,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Demand for a product is 12,000 units per year. Every time an order is made, the company must pay $15.00 per order. The cost to hold an order in inventory is $2.00 per unit per year. Calculate the cost if the company orders 3,000 units each time. O A. $100 O B. $125 OC. $10,000 O D. $150
Monthly sales for the Garden Centre are shown in the table below. Garden CentreSales Forecast Month Sales January $20,000 February $22,000 March $26,000 April $30,000 May $35,000 June $40,000 The Garden Centre purchases inventory two months in advance. They pay for 50% of the merchandise the month after the purchase, and the other 50% two months after the purchase. The Garden Centre’s gross margin is 40%. What are the Garden Centre’s payments to suppliers in March? Please avoid image based solutions thank you