Baseball Soccer Basketball Total Sales revenue $1,140,000 $3,270,000 $2,161,000 $6,571,000 Variable cost of goods sold 772,000 2,125,500 1,729,600 4,627,100 Fixed cost of goods sold 104,900 170,700 150,700 426,300 Gross profit 263,100 973,800 280,700 1,517,600 Variable operating expenses 154,400 523,200 216,100 893,700 Fixed operating expenses 72,600 76,300 66,300 215,200 Common fixed costs 54,500 118,000 88,100 260,600 Operating income ($18,400) $256,300 ($89,800) $148,100 Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear. (a) Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Baseball $ $ Soccer $ $ $ $ Basketball $ 69 $ Total

Baseball Soccer Basketball Total Sales revenue $1,140,000 $3,270,000 $2,161,000 $6,571,000 Variable cost of goods sold 772,000 2,125,500 1,729,600 4,627,100 Fixed cost of goods sold 104,900 170,700 150,700 426,300 Gross profit 263,100 973,800 280,700 1,517,600 Variable operating expenses 154,400 523,200 216,100 893,700 Fixed operating expenses 72,600 76,300 66,300 215,200 Common fixed costs 54,500 118,000 88,100 260,600 Operating income ($18,400) $256,300 ($89,800) $148,100 Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear. (a) Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Baseball $ $ Soccer $ $ $ $ Basketball $ 69 $ Total

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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Use formula as needed. Do not hardcode. 3. Calculate the following for both divisions using appropriate formula: - Variable costs per unit - Contribution margin per unit - Break-even units Use Roundup formula in Excel to round up to full unit. The general roundup formula for break-even will be: =ROUNDUP(Total Fixed costs/Contribution margin per unit,0). - Break-even sales in dollar - Margin of safety in percentage - Operating leverage not income
For the Year Ended December 31, 20Y8 Raw Wool Wool Yarn Rug Yarn Total Company Sales $210,000 $155,000 $167,000 $532,000 Costs of goods sold: Variable costs $(48,000) $(18,600) $(37,180) $(103,780) Fixed costs (32,000) (12,400) (24,800) (69,200) Total cost of goods sold $(80,000) $(31,000) $(61,980) $(172,980) Gross profit $130,000 $124,000 $105,020 $359,020 Operating expenses: Variable expenses $(5,000) $(7,750) $(53,120) $(65,870) Fixed expenses (89,000) (77,000) (106,200) (272,200) Total operating expenses $(94,000) $(84,750) $(159,320) $(338,070) Operating income (loss) $36,000 $39,250 $(54,300) $20,950 Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products. If required, use a minus sign to indicate a loss. Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 20Y8 Continue Rug Yarn (Alternative 1) Discontinue Rug Yarn (Alternative 2)…
Salespersons' Report and Analysis Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $612,000 $336,600 $85,680 Dix 384,000 215,040 84,480 Johnson 461,000 225,890 101,420 LaFave 460,000 147,200 101,200 Orcas 399,000 131,670 51,870 Sussman 427,000 217,770 59,780 Willbond 439,000 184,380 70,240 Required: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers. Waltham Industries Inc.Salespersons' AnalysisFor the Year Ended December…
Sales revenue Variable cost of goods sold Fixed cost of goods sold Gross profit Variable operating expenses Fixed operating expenses Common fixed costs Operating income (a) $1,360,000 Q Search Baseball V V 919,000 V 123,800 317,200 183,800 85,200 65,000 ($16,800) Soccer $3,900,000 2,535,000 $ 202,200 $ 1,162,800 624,000 91,000 139,000 Basketball $2,560,000 2,065,600 178,000 316,400 Baseball 256,000 78,900 104,900 $308,800 ($123,400) Doug is concerned that two of the company's divisions are showing a loss, and he wonders if the company should stop selling baseball and basketball gear to concentrate solely on soccer gear. Prepare a segment margin income statement. Fixed cost of goods sold and fixed operating expenses can be traced to each division (If the amount is negative then enter with a negative sign preceding the number, e.g.-5.125 or parenthesis, eg (5,125)) C $ Total $7,820,000 5,519,600 $ 504,000 F 1,796,400 1,063,800 255,100 308,900 $168,600 Soccer $ B:
W. Region E. Region Stock Inc. Darby Corp $ Cost of goods sold 590,000 1,050,000 301,000 200,000 + Operating income (loss) + $ + $ + Cust-level oper. costs 54,110 50,670 35,250 29,600 Total = Total customer-level costs 644,110 1,100,670 336,250 229,600 = || || GA GA CA Now prepare a customer-cost hierarchy report. (Use parentheses or a minus sign to enter an operating loss. Abbreviations used: W. = West; E. = East; Dist. = Distribution; oper. = operating; inc. = income.) EA Customer Distribution Channels Wholesale Customers Total W. Region E. Region Wholesale Wholesaler Wholesaler Retail Customers Total Retail Stock Inc. Darby Corp
Financial information is presented below: Operating Expenses $56000 Sales Revenue Cost of Goods Sold Gross profit would be $48000. $238000. $182000. $104000. 238000 134000
Assume the following information for a merchandising company: Number of units sold Selling price per unit. Variable selling expense per unit Variable administrative expense per unit Fixed administrative expenses Beginning merchandise inventory Ending merchandise inventory Merchandise purchases What is the amount of total variable expenses? 20,700 $ 30 $ 3 $2 $ 50,000 $ 24,000 $ 19,000 $ 341,000
Salespersons' Report and Analysis Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $556,000 $211,280 $116,760 Dix 400,000 160,000 88,000 Johnson 350,000 133,000 52,500 LaFave 518,000 264,180 98,420 Orcas 553,000 270,970 88,480 Sussman 507,000 182,520 91,260 Willbond 493,000 276,080 69,020 Required: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers. Waltham Industries Inc. Salespersons' Analysis For the Year Ended…
QUESTION 2- COST-VOLUME -PROFIT (CVP) Analysis Question matics Incorporated manufactures flat-screen television sets. The company’s contribution format income statement for 2021 is given below: Total Per Unit Percentage of Sales Sales (25,000 units) $ 2,500,000 $ 100 100% Less variable expenses $ 1,500,000 $ 60 ? % Contribution Margin $ 1,000,000 $ 40 ? % Less Fixed Expenses $ 800,000 Operating Income $ 200,000 Management believes operating income can be further improved and would like you to prepare the following analysis: Required: Compute the company’s Contribution Margin ( CM ) ratio and variable expense ratio. Compute the company’s break-even point in both units and sales dollars.Use the equation method Assume that sales increase by $ 600,000 next year. If cost behaviour patterns remain unchanged, by how much will the company’s operating income increase. Use the Contribution Margin (CM) ratio to…
Expenses Advertising 1,200 Employees 7,680 License 1,100 Merchandise 1,500 Utilities 3,800 Liability Insurance (monthly) 88.08 Total Expenses $15,368 Gross Income 29800 15% Income Tax ? Net Profit ? Revenue = $33,610 Identify 15% income tax (show work) Identify Net Profit (show work) Identify at least 6 fix costs and 8 variable costs List the second income statement to show you cut 15% cost either fix or variable or both SHOW WORK and EXPLAIN
Units sold = 8700 games units Selling price per unit = $ 69 Variable expenses = $ 49 Fixed expenses = $ 87000 Contribution margin per game = 69 - 49 = $ 20 Income statement:
Sales 218,000 Gain on sale of equipment $ 6,290 epreciation expense—Office copier $ 530 Office supplies expense 620 Sales discounts 16,700 Insurance expense 1,380 Sales returns and allowances 3,900 TV advertising expense 3,800 Office salaries expense 31,100 Interest revenue 650 Rent expense—Selling space 11,600 Cost of goods sold 91,000 Sales staff wages 23,700 Sales commission expense 13,100 whats the total income profited