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…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

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Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EB: The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method,...

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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
What is the desired profit for the year on these general accounting question?
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?
Jellico Inc.’s projected operating income (based on sales of 450,000 units) for the coming year isas follows:TotalSales $11,700,000Total variable cost 8,190,000Contribution margin $ 3,510,000Total fixed cost 2,254,200Operating income $ 1,255,800Required:1. Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution margin ratio, (d) break-even point in units, and (e) break-even point in sales dollars.2. How many units must be sold to earn operating income of $296,400?3. Compute the additional operating income that Jellico would earn if sales were $50,000 morethan expected.4. For the projected level of sales, compute the margin of safety in units, and then in salesdollars.5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.)6. Compute the new operating income if sales are 10% higher than expected.
1. The following CVP income statements are available for ABC Company and XYZ Company. АВС Companу Sales Variable costs Contribution margin Fixed costs Operating income CVP I/S for 2020 $500,000 300,000 200,000 180,000 $ 20,000 XYZ Company CVP I/S for 2020 $500,000 180,000 320,000 300,000 $ 20,000 (a) Compute the break-even point in dollars and the margin of safety ratio for each company. (b) Compute the degree of operating leverage for each company. (c) Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company- (d) Assuming that sales revenue increases by 20%, calculate the operating incomes of the two companies without preparing income statement. (Use DOL) www www ww www
1. The following CVP income statements are available for ABC Company and XYZ Company. АВС Сompany XYZ Company CVP I/S for 2020 CVP I/S for 2020 Sales $500,000 300,000 200,000 180,000 $500,000 180,000 320,000 300,000 $ 20,000 Variable costs Contribution margin Fixed costs Operating income $ 20,000 (a) Compute the break-even point in dollars and the margin of safety ratio for each company. (b) Compute the degree of operating leverage for each company. (c) Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company. (d) Assuming that sales revenue increases by 20%, calculate the operating incomes of the two companies without preparing income statement. (Use DOL)
Remar, Inc. reported the following results from sales of 5,000 units of Product C for the month of June 2019 (refer to the attached picture): Assume that Remar, Inc. increases the selling price of Product C by 10% on July 1, 2019. How many units of Product C would have to be sold in July 2019 in order to generate an operating income of P20,000? sales 200,000 variable cost 120,000 fixed cost 60,000 operating income 20,000
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Assuming the selling price and cost changes in the Marketing Plan are adopted:a. prepare a CVP Income Statement (total and per unit) for 2020, assuming sales and production increase by 18% as outlined in the Marketing Plan.b. Using the above CVP Income Statement, determine the Company’s Contribution Margin Ratio for 2020.c. Assuming the selling price and cost changes in the Marketing Plan are adopted, determine the break-even point in number of knives for the company in 2020. For full credit, please show the elements of your computations. Round to the nearest next whole unit.
You are given the following information about XX company in 2020
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