Assume the following information for a merchandising company:   Number of units sold    20,000 Selling price per unit    $ 30 Variable selling expense per unit    $ 3.6 Variable administrative expense per unit    $ 2.6 Fixed administrative expenses    $ 50,000 Beginning merchandise inventory    $ 24,000 Ending merchandise inventory    $ 19,000 Merchandise purchases    $ 340,000 What is the contribution margin?

Q: Contribution Margin by Segment The following data are for Elm Leaf Apparel: East West Sales volume…

A: Solution:- Calculation of contribution margin as follows under:- Contribution margin = Selling Value…

Q: Variable Costing, Absorption Costing During its first year of operations, Snobegon, Inc. (located in…

A: The cost per unit under absorption costing consists of variable and fixed manufacturing costs.  The…

Q: % % % O The estimated operating income will be $ 66,120 Requirement 5. Prove your answer to…

A: Operating income is the income generated from the operations of the entity. Variable costs are…

Q: Sales $ 435,000 Beginning merchandise inventory $ 29,000 Purchases $ 290,000 Ending merchandise…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Number of units sold Selling price per unit Unit cost of goods sold Variable selling expense per…

A: Using variable costing, the contribution margin is calculated as the difference between the sales…

Q: Restate the following income statement for a retailer in contribution format. Sales revenue ($100…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Restate the following income statement for a retailer in contribution format. Sales revenue ($100…

A: Contribution format income statement is that income statement in which we segregate the variable…

Q: Calculate the operating income for August using absorption costing.

A: The absorption costing is a method of costing.This includes both the variable and fixed overhead…

Q: Assume a merchandising company uses the high-low method to separate any mixed costs into their…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…

Q: 1. You are inventory manager of Diego Supplies Inc. You computed the EOQ to be 500 units. Annual…

A: Economic order quantity is the best possible order quantity which provides with least cost of…

Q: Cherokee Incorporated is a merchandiser that provided the following information: Amount Number of…

A: An Income statement shows all the income(s) earned by an organization. There are a number of ways…

Q: A furniture company reports these data: Price per unit: $30 Variable cost per unit: $15 Fixed…

A: Break Even Point (BEP) :— It is the point at which total cost is equal to total revenue. At this…

Q: Contribution Margin by Segment The following data are for Elm Leaf Apparel: East West Sales volume…

A: Contribution Margin:   Contribution margin is Selling price per unit minus Variable cost involved in…

Q: Financial information is presented below: Operating expenses $ 24000 Sales returns and allowances…

A: Net Sales = Sales revenue - Sales discounts - Sales returns and allowances Net Sales = 162000 - 3000…

Q: Number of units sold 20,000 Selling price per unit Variable selling expense per unit Variable…

A: calculation of contribution of margin are as follows:

Q: Cherokee Incorporated is a merchandiser that provided the following information:     Amount…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: The following data are for Elm Leaf Apparel:   East  West  Sales volume (units):         Product XX…

A: Contribution margin = Sales - Variable costs

Q: Cherokee Incorporated is a merchandiser that provided the following information: Number of units…

A: Income statement is a financial statement that shows profitability, total revenue and total expenses…

Q: Using the information below, calculate the cost of goods manufactured for the period: Beginning Raw…

A: Cost of goods manufactured: Cost of goods manufactured means total manufacturing costs; including…

Q: Consider the following sales and cost data for Van Buren Company. The total sales and cost…

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

Q: Now change all of the dollar amounts in the data area of your worksheet so that it looks like this:…

A: Gross margin = Sales - Cost of goods sold Contribution margin  = Sales - Total variable costs

Q: The following data are for Elm Leaf Apparel: Sales volume (units): Sales price: Product XX Product…

A: Contribution Margin is that amount which is before fixed expenses profit of the company. If we will…

Q: Pederson Company reported the following: Manufacturing costs Units manufactured Units sold sold for…

A: Ending finished goods inventory is calculated by multiplying average manufacturing cost per unit by…

Q: Assume the following information for a merchandising company: Number of units sold Selling price per…

A: Variable expenses are the expenses that keeps on changing with the change in the activity level or…

Q: Data     Sales $12,000   Variable costs:     Cost of goods sold $6,000   Variable selling $600…

A: Income Statement is the part of financial statement which shows the income earned and expenditure…

Q: prepare a contribution income statement with the following: Selling Price Per Unit  $45  Variable…

A: A contribution margin income statement refers to an income statement wherein all factor costs are…

Q: income statement

A: Income statement represents the operational results of a business organization for a definite…

Q: The following is the year ended data for Tiger​ Company:   Sales Revenue $57,000 Cost of Goods…

A: The cost of goods available for sale seems to be the expense of total products manufactured…

Q: Using the following information, determine the activity rate for the purchasing activity. Activity…

A: Under activity based costing, cost are calculated for each activity based on their consumption or…

Q: kee Incorporated is a merchandiser that provided the following information:     Amount Number of…

A: The income statement explains the financial performance of the company for a particular period of…

Q: The following date relates to Your Company: Total Store 1 Store 2 Sales $2,100,000 $1,300,000…

A: Shut down analysis refers to analyzing the decision of shutting down the division/product of the…

Q: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense…

A: Variable costing income statementThe income from the activities must be drawn and computed using…

Q: Problem 2: Contribution margin income statements for Beyonce Couture and Rihanna Cosmetics for the…

A: Solution:-We know, Operating Leverage = Contribution margin /  Operating Income

Q: s net operating income if 15,920 units are sold

A: Variable cost per unit (Change in Cost of goods sold at two different levels)/Change in number of…

Q: Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:…

A: Lets understand the basicsIncome statement can be prepared using contribution margin or traditional…

Q: Use the accompanying Profit_Analysis spreadsheet model to answer the following questions.…

A: Formula used: Breakeven quantity=Fixed costPrice per item-Total variable cost per item Quantity…

Q: The MER-92566 merchandising company reported the following information for last year: Amount 24…

A: Contribution margin per unit = Selling price - Variable cost per unit

Q: Craig Co. sells two products, A and B. Last year, Craig sold 14,000 units of A and 21,000 units of…

A: Given:                   Unit SellingPrice   Unit VariableCost   Unit ContributionMargin…

Q: Cherokee Inc. is a merchandiser that provided the following information:           Number of units…

A: Traditional Income Statement is a part of financial statements used to record expenses incurred and…

Q: Cherokee Incorporated is a merchandiser that provided the following information: Amount 10,000 $ 17…

A: Income Statement is a financial statement that includes revenue earned and expenses incurred during…

Q: The following information is available for Concord Company: Sales Total fixed expenses Cost of goods…

A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…

Q: Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:…

A: The contribution margin is the result of subtracting variable production costs from revenue. Net…

Q: The following data are for Cabin Craft Apparel:   East  West  Sales volume (units):         Product…

A: Formula: Contribution margin = Sales price - variable cost

Q: Practice Problems 1)Corp sells several products. Informa Selling price per unit Variable costs per…

A: calculation of operating income and other necessary calculation are as follows

Q: The following information is available for Bramble Corp.: Sales Cost of goods sold $520000 300000…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.