Please provide solution for this general accounting question Beverage Corp collected the following annual information on total net sales andtotal operating costs:Year Total Net Sales ($) Total Operating Costs ($)2019 10,000,0002020 11,000,0005,250,0005,550,000In 2021, total net sales are budgeted to be $12,000,000. Using the high-lowmethod, prepare an estimate of total operating costs for 2021, assuming totalfixed costs and variable costs as a percentage of total net sales remain the same asin 2019 and 2020.

Step 1: Define High-Low MethodThe high-low method is a technique used to separate fixed and variable…

Answered: Beverage Corp collected the following…

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 GAAP income statement for Pace Company for the year ended December 31, 2022, shows sales $900,000, cost of goods sold $600,000, and operating expenses $200,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.
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Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,000 units at $300 each) Variable costs (11,000 units at $240 each) Contribution margin $3,300, өөө 2,640,000 2$ 660,000 360,000 Fixed costs Pretax income $300,000 1. Compute the company's degree of operating leverage for 2019. 2. If sales decrease by 5% in 2020, what will be the company's pretax income? 3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020. Complete this question by entering your answers in the tabs below.
A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019
The CVP income statements shown below are available for AX Company and ZY Company at the beginning of 2020. AX Company ZY Company Sales $500,000 $500,000 Variable Costs $110,000 $10,000 Contribution Margin $390,000 $490,000 Fixed Costs $100,000 $200,000 Net Income $290,000 $290,000 Instructions a. Using the breakeven point in dollar, determine which company could be in risk? b. Determine the degree of operating leverage for each company. c. During 2020, both companies faced problems resulted in having a decline in sales by $50,000 and that affected rapidly to the net income during that year. Which company would produce less net income?
What is the desired profit for the year on these general accounting question?
Oriole Inc. earned operating income of $110,000 during 2021. The company wants to earn operating income of $154,000 during 2022. Its fixed costs are expected to be $61,600, and variable costs are expected to be 30% of sales. (a) Determine the required sales to meet the target operating income during 2022. Required sales $
KRIS Ltd forecasts the 2019 sale of its single product, COS, to 200,000 units at $120 per unit with a total budgeted net income of $2,775,000. Estimated annual fixed costs are $3,500,000. Corporate income tax rate is 25%. Required 1. Using the above data, calculate: (a) the contribution margin and the contribution margin ratio (b) the breakeven volume and breakeven revenue (Note: do not resort to multiplying volume by unit price)
Compute the Cost Effect- Price Recovery Component indicate if favorable/(unfavorable).
In planning its operations for 2021 based on a sales forecast of P6,000,000 and breakeven point in pesos of P4,000,000, Thone, Inc., prepared the following estimated data: Cost and Expenses (Variable) Direct materials P1,600,000 Direct labor 1,400,000 Factory overhead 600,000 Selling expenses 240,000 Administrative expenses 60,000 What would be the amount of fixed cost and expenses? 1350,000 1,400,000 c. 1,450,000 d. 1,500,000
What is the best estimate of total operating expenses?
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,400 units at $280 each) Variable costs (10,400 units at $210 each) Contribution margin $2,912,000 2,184,000 728,000 567,000 $ 161,000 Fixed costS Pretax income 1. Assume Hudson Co. has a target pretax income of $170,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)

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