Bramble Corp.recorded operating data for its shoe division for the year. The company's desired return is 5%. Sales Contribution margin Total direct fixed costs Average total operating assets $12400000 400000 180000 520000 What is the controllable margin for the year? O 77% O $90000 O 3% O $220000
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- Tyler Company has the following information pertaining to its two product lines for last year: Variable selling and admin. expenses Direct fixed expenses Sales Direct fixed selling and admin. expenses Variable expenses Operating income Common expenses are $105,000 for the year. What is the income for Tyler Company? $102,500 $120,500 $99,000 $101,000 Product A $38,000 19,500 250,000 38,000 42,000 $112,500 " Product B $31,000 34,500 210,000 22,000 31,000 $91,500Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 280,500 161,500 119,000 54,700 $ 64,300 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating incomeMa3. Nike Corp. recorded operating data for its shoe division for the year as follows: Sales - $12160000 Contribution margin - 380000 Controllable fixed costs - 120000 Average total operating assets - 760000 What is the controllable margin for the year? A.$260000 B.32% C.$380000 D.50%
- Green Valley Corp.'s contribution format income statement for the most recent month follows: Sales $ 506,000 Variable expenses 236,500 Contribution margin 269,500 Fixed expenses 241,700 Net operating income $ 27,800 Required: a. Compute the degree of operating leverage to two decimal places. b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 3% increase in sales. c. If Green Valley’s competitor Black Mountain Inc. has a degree of operating leverage as 8, which company has the higher operating risk?The following data are available for the Valentine Corporation for a recent month: Product A Product B Product C Total Selling price $23 $69 $115 Sales $115,000 $172,500 $287,500 |Variable |$91,000 $104,000 $27,000 Expenses Contribution $24,000 $68,500 $260,500 Margin Fixed $55,000 Expenses Net Operating Income What is the sales revenue required from Product C at the break even point?CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…
- Dogs R Us has two product lines: collars and leashes. Income statement data forecasted for next year is as follows: COLLARS LEASHES TOTAL Sales revenue $210,000 $150,000 $360,000 Variable expenses $135,000 $120,000 $255,000 $75,000 Contribution margin $30,000 $105,000 Fixed expenses $56,000 $38,000 $94,000 Operating income (loss) $19,000 ($8,000) $11,000 If $21,584 in fixed costs will be eliminated by dropping the LEASHES line, how will TOTAL operating income be affected after the Leashes line is dropped? If income drops, use a negative sign in front of the number. ASUS 13 f4 15 X f8 f9 f10 f11 f12 & 5. 8. 9.Last year's contribution format income statement for Huerra Company is given below: Unit $ 49.60 29.76 19.84 15.74 Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income The company had average operating assets of $496,000 during the year. Required: 1. Compute last year's margin, turnover, and return on investment (ROI). For each of the following questions, indicate whether last year's margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI. Consider each question separately. 2. Using Lean Production, the company is able to reduce the average level of inventory by $95,000. 3. The company achieves a cost savings of $11,000 per year by using less costly materials. 4. The company purchases machinery and equipment that increase average operating assets by $124,000. Sales remain unchanged. The new, more efficient equipment reduces production costs by $7,000 per…Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $ 268,600 150, 100 118,500 54,300 Per Unit $ 34.00 19.00 $ 15.00 $ 64,200 Sales (7,900 units) Variable expenses Contribution margin Fixed expenses Net operating income. Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume decreases by 30 units? 3. What would be the revised net operating income per month if the sales volume is 6,900 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
- Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets ROI At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales $ 480,000 $ 336,000 The company's minimum required rate of return is 15%. $ 1,400,000 680,000 720,000 440,000 $ 280,000 $ 875,000 Contribution margin ratio Fixed expenses 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 37.3 % 80% of salesWhirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000 units) $ 240,000 $ 30.00 Variable expenses 152,000 19.00 Contribution margin 88,000 $ 11.00 Fixed expenses 55,000 Net operating income $ 33,000 Can you please help me solve for the following: A. What would be the revised net operating income per month if the sales volume increases by 60 units? B. What would be the revised net operating income per month if the sales volume decreases by 60 units? C. What would be the revised net operating income per month if the sales volume is 7,000 units?
