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Buffalo, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2025 are projected as follows. Quarter First Second Units 70,400 132,000 484,000 Fourth 105,600 Annual total 792,000 Third Buffalo incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Buffalo will incur fixed manufacturing costs of $633,600 and fixed nonmanufacturing costs of $950,400. Buffalo will sell its product for $4 per unit. (a) Determine the amount of net income Buffalo will report in each of the four quarters of 2025, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Income before taxes (Integral Approach) Income before taxes (Discrete Approach) $ 1st Quarter 2nd Quarter 3rd Quarter

Buffalo, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2025 are projected as follows. Quarter First Second Units 70,400 132,000 484,000 Fourth 105,600 Annual total 792,000 Third Buffalo incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Buffalo will incur fixed manufacturing costs of $633,600 and fixed nonmanufacturing costs of $950,400. Buffalo will sell its product for $4 per unit. (a) Determine the amount of net income Buffalo will report in each of the four quarters of 2025, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Income before taxes (Integral Approach) Income before taxes (Discrete Approach) $ 1st Quarter 2nd Quarter 3rd Quarter

FINANCIAL ACCOUNTING
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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Buffalo, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2025 are projected as follows. Quarter First Second Third Fourth Annual total (a) Units 70,400 132,000 484,000 Buffalo incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Buffalo will incur fixed manufacturing costs of $633,600 and fixed nonmanufacturing costs of $950,400. Buffalo will sell its product for $4 per unit. 105,600 792,000 Save for Later Determine the amount of net income Buffalo will report in each of the four quarters of 2025, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Income before taxes (Integral Approach) Income before taxes (Discrete Approach) 1st Quarter $ $ 2nd Quarter 3rd Quarter Attempts: 0 of 7 used Submit Answer (b1) The parts of this question must be completed in order. This part will be available when you complete the part above.
Transcribed Image Text:Buffalo, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2025 are projected as follows. Quarter First Second Third Fourth Annual total (a) Units 70,400 132,000 484,000 Buffalo incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Buffalo will incur fixed manufacturing costs of $633,600 and fixed nonmanufacturing costs of $950,400. Buffalo will sell its product for $4 per unit. 105,600 792,000 Save for Later Determine the amount of net income Buffalo will report in each of the four quarters of 2025, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Income before taxes (Integral Approach) Income before taxes (Discrete Approach) 1st Quarter $ $ 2nd Quarter 3rd Quarter Attempts: 0 of 7 used Submit Answer (b1) The parts of this question must be completed in order. This part will be available when you complete the part above.
(b1) Compute Sunland's profit margin on sales for each of the four quarters of 2025 under both the integral and discrete approaches. (Round answers to 1 decimal place, e.g. 52.5%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Integral approach Discrete approach 1st Quarter % Profit margin on sales 2nd Quarter 3rd Quarter % %
Transcribed Image Text:(b1) Compute Sunland's profit margin on sales for each of the four quarters of 2025 under both the integral and discrete approaches. (Round answers to 1 decimal place, e.g. 52.5%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Integral approach Discrete approach 1st Quarter % Profit margin on sales 2nd Quarter 3rd Quarter % %
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