Campbell Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring inthe spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activityoccurred in June when it produced 200 boats at a total cost of $157,470. The low point in production occurred in January when itproduced 37 boats at a total cost of $45,000.Requireda. Use the high-low method to estimate the amount of fixed cost incurred each month by Campbell Boat Company.b. Determine the total estimated cost if 140 boats are made.a. Fixed costb. Total estimated cost

VARIABLE COST Variable Cost is a cost that varies with the level of output. variable costs include…

Answered: Campbell Boat Company makes inexpensive…

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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Juniper Design Limited of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $440,000 on sales of $1,700,000. The company's average operating assets for the year were $1,900,000 and its minimum required rate of return was 16%. Required: Compute the company's residual income for the year. Residual income
Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $460,000 on sales of $1,400,000. The company's average operating assets for the year were $1,600,000 and its minimum required rate of return was 11%. Required: Compute the company's residual income for the year. Residual income
Based on the following sensitivity report, what would be the impact of changing the constraint right-hand side for Resource_A to 77 and, at the same time, changing the constraint right-hand side for Resource_C to 550? Variable Cells Final Objective Allowable Allowable Cell Name Value Reduced Cost Coefficient Increase Decrease $B$2 $B$3 Product 1 -2 5. 2 1E+30 Product 2 175 7 1E+30 1 $B$4 Product 3 -1.5 1.5 1E+30 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H.Side Increase Decrease $H$9 Resource_A Resource B Resource C 100 1E+30 20 $H$10 525 800 1E+30 220 $H$11 700 1.75 700 200 110 100%. Applying the 100% rule, because the total change in the constraint right-hand sides
keep costs down, CGC maintains a warehouse but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: 1. Expected monthly sales for April, May, June, and July are $180,000, $150,000, $270,000, and $50,000, respectively. 2. Cost of goods sold is 45 percent of expected sales. 3. CGC's desired ending inventory is 55 percent of the following month's cost of goods sold. 4. Monthly operating expenses are estimated to be: . Salaries: $33,000. ° Delivery expense: 8 percent of monthly sales. • Rent expense on the warehouse: $2,500. • Utilities: $500. • Insurance: $330. • Other expenses: $430. Required: 1. Compute the budgeted cost of purchases for each month in the second quarter. 2. Complete the budgeted income statement for each month in the second quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the budgeted cost of purchases for each month in the second quarter. Total Cost of…
Alberta Gauge Company, Limited, a small manufacturing company In Calgary, Alberta, manufactures three types of electrical gauges used in a variety of machinery. For many years the company has been profitable and has operated at capacity. However, In the last two years, prices on all gauges were reduced and selling expenses increased to meet competition and keep the plant operating at capacity. Second-quarter results for the current year, which follow, typify recent experience. ALBERTA GAUGE COMPANY, LIMITED Income Statement Second Quarter Req 2A Req 2B1 Req 282 Req 2C1 Req 2C2 Calculate the net impact on income before taxes for each of the three suggestions. E-Gauge Q-Gauge R-Gauge Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes (in thousands) Q-Gauge $ 1,800 1,088 E-Gauge $ 1,150 820 R-Gauge $ 1,100 1,150 $ 712 380 $ 330 445 $ 332 $ (115) $ (285) $ (50) 235 Total $ 4,050 3,058 $ 992 1,060 $ (68) Alice Carlo, the company's president, is…
Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $430,000 on sales of $2,200,000. The company’s average operating assets for the year were $2,400,000 and its minimum required rate of return was 14%. Required: Compute the company’s residual income for the year.
The following information concerns the company Plastic Products S.A. which produces a single product which is sold for 24 euros per unit. Of the 200,000 units produced in 20X3, 160,000 were sold during the year. It is noted that the company had no initial stocks of finished and semi-finished products on 1/1/20X3 and no final stocks of semi-finished products on 31/12/20X3. Then some additional information is given regarding the cost of the business during the 20X3 fiscal year. Cost element Direct materials Direct labor Variable general industrial overhead Fixed general industrial overhead Variable sales expenses Fixed sales expenses Value 480,000 euros 320,000 euros 160,000 euros 480,000 euros 160,000 euros 256,000 euros Calculate the operating result of the use 20X3 according to marginal and absorption costing.
Juniper Design Limited of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $490,000 on sales of $2,100,000. The company's average operating assets for the year were $2,300,000 and its minimum required rate of return was 11%. Required: Compute the company's residual income for the year. Residual income
Required information (The following information applies to the questions displayed below] Astro Company sold 25,000 units of its only product and reported income of $117,600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $149,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Incone Statenent For Year Ended December 31 Sales ($40 per unit) $ 1,000,000 800,000 Variable costs ($32 per unit) Contribution margin Fixed costs 200,000 82,400 Incone $ 117,600 ces 2 Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,000,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) ASTRO…
Astro Company sold 23,000 units of its only product and reported income of $264, 600 for the current year. During a planning session for next year's activities, the production manager notes that variable costs can be reduced 44% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $156,000. Total units sold and the selling price per unit will not change. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales ($56 per unit) $ 1, 288,000 Variable costs ($35 per unit ) 805, 000 Contribution margin 483,000 Fixed costs 218,400 Income $ 264,600 Problem 18 - 3A (Algo) Part 1 1. Compute the break - even point in dollar sales for next year assuming the machine is installed. (Round your answers to 2 decimal places.)
Po.25.
Whipple Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company uses machine hours to allocate manufacturing overhead and estimated 10,450 machine hours would be used during the year. For the year, manufacturing overhead was under-allocated by $13,400. The company's actual manufacturing overhead is $91,000. What is the actual gross profit? Select one: a. $250,000 b. $159,000 c. $236,600 d. $104,400 e. $263,400

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