Assume that total sales revenue for2018 is projected to be $1,015,848.Assume also the following costs forShannon's Brewery:Packaged (Cans& Bottles)KegsShrinkage/WIP$150,000$80,000Loss$42,000Contract Labor$9,000Direct Labor$240,000Freight$18,000ConsumerAdvertising$28,568Trade Promotion$32,807Sales Promotion$18,000Salaries &Benefits$180,000Compute Shannon's %NMC. Roundyour answer to the nearest percent.For example, if your computedanswer is 99.4% your answerrounds down to 99%. If yourcomputed answer is 99.5% youshould round up to 100%. DO NOTINCLUDE THE % SIGN IN YOURANSWER.

Expense Amount$ Cost Packaged (cans & bottles) 150000 variable cost Kegs 80000…

Answered: Assume that total sales revenue for…

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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The fixed costs of operating the Srepta Corp. are $4,800,000 annually. Variable costs are incurred at the rate of $25 per maintenance-hour. On average, the company incurs 38,000 maintenance-hours per year. Budgeted and actual hours per user for 2019 are as follows: Budgeted hours Actual hours Building and grounds 10,000 9,800 Administration 2,500 1,600 Customer Service 18,000 22,500 IT support 7,500 7,800 Total 38,000 41,700 Assume that budgeted maintenance-hours are used to calculate the allocation rates. 1. Using a single-rate allocation and budgeted usage, how much will each department be allocated? 2. Using a dual-rate allocation with fixed costs allocated according to budgeted hours and variable costs allocated to actual hours, how much overhead will each department be allocated?
Magnificent Modems has excess production capacity and is considering the possibility of making and selling security tokens. The following estimates are based on a production and sales volume of 1,000 security tokens. Unit-level manufacturing costs are expected to be $20. Sales commissions will be established at $1 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($60,000), rent on the manufacturing facility ($50,000), depreciation on the administrative equipment ($12,000), and other fixed administrative expenses ($71,950), will not be affected by the production of the security tokens. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (security tokens) on the basis of the number of units of product made (i.e., 5,000 modems and 1,000 security tokens). Required a. Determine the per-unit cost of making and selling 1,000 security tokens. Note: Do not round intermediate…
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Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 550,000 400,000 420,000 190.000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $109,000 58,000 21,000 52.000
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he production cost information for Blossom's Salsa is as follows: Blossom's Salsa Production Costs April 2020 Production 23,000 Jars of Salsa Ingredient cost (variable) $13, 800 Labor cost (variable ) 9,660 Rent (fixed) 4, 300 Depreciation (fixed) 6,000 Other (fixed) 1,400 Total $35, 160 The company is currently producing and selling 345,000 jars of salsa annually. The jars sell for $7.00 each. The company is considering lowering the price to $6.30. Suppose this action will increase sales to 391, 000 jars. What is the incremental cost associated with producing an extra 46, 000 jars of salsa?
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Gibson Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 1,800 pagers.Unit-level manufacturing costs are expected to be $28. Sales commissions will be established at $1.80 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($68,000), rent on the manufacturing facility ($58,000), depreciation on the administrative equipment ($14,400), and other fixed administrative expenses ($75,950), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (i.e., 5,800 modems and 1,800 pagers).Requireda. Determine the per-unit cost of making and selling 1,800 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.)
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Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 130,000 100% Variable expenses 52,000 40% Contribution margin 78,000 60% Fixed expenses 20,000 Net operating income $ 58,000 Required: What is the company’s degree of operating leverage? Using the degree of operating leverage, estimate the impact on net operating income of a 25% increase in unit sales. (not able to upload a third image) but I need the correct answer to what is the "net operating income" Construct a new contribution format income statement for the company assuming a 25% increase in unit sales.

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